São Paulo – A good crop associated to high prices in the global market were factors that boosted the good performance of Brazilian agribusiness in 2011, according to the technical director of the Brazilian Agribusiness Association (Abag), Luiz Antonio Pinazza. The sector’s Gross Domestic Product (GDP) grew 3.9% last year and contributed strongly to the 2.7% expansion in the Brazilian economy.
"This result was the fruit of a fortunate combination, hard to find in agriculture. We had a record crop, and that was combined with a very high price conjecture in historical terms,” said Pinazza.
According to the director, good crops normally result in lower food prices, but last year there were grain crop problems in large European producers, which resulted in higher prices for these products. “There was a very strong drought in Eastern Europe and prices started rising,” he said.
This year, however, Pinazza forecasts that the sector should not have such a good performance. “Agriculture will certainly provide another good contribution, but it will not have the same strength as last year.” According to him, the country should not reach the same levels as last year.
*Translated by Mark Ament
