São Paulo –The Gross Domestic Product (GDP) of the Brazilian agriculture will amount to as high as 23% of the Brazilian GDP in 2014 and reach R$ 1.1 trillion (US$ 411 billion). The forecast came from the Ministry of Agriculture, Livestock and Food Supply (Map) and was released this Monday (29) by its Office of Strategy Management. In the document, Mapa says that the result shows the sector’s production growth, as well as the production of inputs and agricultural machines and equipment.
The Ministry states that this year Brazil might produce the biggest grain crop ever and reach 25.9 million tons.
The estimation of the sector’s revenue is calculated based on the Gross Value of Agricultural Production (GVAP), which measures the earnings obtained with the sale of the 26 main agriculture products. The expectation is for the GVAP to reach R$ 461.6 billion (US$ 173 billion), an amount 2.5% greater than 2013. For 2015, the estimation calls for a stability in comparison to this year and for the GVAP to stay at R$ 462 billion (US$ 173 billion).
According to the Ministry of Agriculture, crop production amounts to around 70% of the agriculture’s revenue. Livestock amounts to 30%. This year, agriculture’s productivity increased 10.3% over 2013 with crop dropping 1.6%.
Crop GVAP dropped because of the drop of prices in products such as sugarcane, maize, cocoa, beans, soybeans and wheat. While livestock GVAP increased due to the price appreciation of beef, pork and poultry as a result of the international market’s demand. For 2015, the expectation is for stability in crop price.
*Translated by Sérgio Kakitani
