Gold
rush
Inthe2016/17growingseason,Brazilharvestedthebiggest
croponrecord,with237.6milliontons.Theresultraisedour
GrossProductionValueby1.3percenttoatotalofR$540.3
billion,thesecondlargestinhistory.Thepositiveimpactcoming
fromagribusinessdoesnotstopthere:exportsofthesector
amountedtoUS$96.01billion,representingasurplusofUS$
81.86billioninthebalanceoftrade. Itisfromthefarmsthatgold
comesfromnowadays,heatingupoursocioeconomy.
B
razil may be going through
troubled days in its econo-
my or political scenario, but
nothing seems to be so far
away and dissonant than
what occurs in the universe of agribusi-
ness, where everything sounds superla-
tive in terms of good news.
In the 2016/17 growing season, the
Country, in spiteof anarrayof obstacles and
costs incurred outside the farm gate, har-
vested the biggest crop in history, 237.6mil-
lion tons, according to the National Food
Supply Agency (Conab). The credit goes to
productivity, benefited by favorable weath-
er conditions throughout all regions, and
not to planted area increases.
In such a situation, not only the har-
vest in itself was abundant, but year 2017
came to a close with the highest jump on
record in Gross Production Value (GPV),
R$ 540.3 billion, up 1.3 percent from
2016, in actual values. It is the second
best result in history, coming only after
the result achieved in 1989. Agricultur-
al crops went up 4.2 percent, while live-
stock operations dropped 4.1%.
As expected, soybean was, and still is,
the big player in agribusiness. According to
Conab sources, the 2016/17 growing sea-
son came to a close with a crop of 114 mil-
lion tons, an all-time record. And, although
the season signals a smaller crop, down
3.2 percent, with regard to production (al-
though oddly the planted area registers a
similar increase of 3.2 percent, from 33.9
million hectares to nearly 35 million hect-
ares), the oilseed is still the great bet in the
countryside. This reduction in the soy vol-
ume has an impact on the final result fore-
seen for the 2017/18 crop year, which is
supposed to reach 227.9 million tons, ac-
cording to Conab estimates.
If the rural setting is already commem-
orating with euphoria the lush crop, things
are not different in the realm of businesses
and revenue for the Country. Brazilian agri-
business exports amounted to US$ 96.01
billion in 2017, up 13 percent from 2016.
The sector was responsible for 44.1 percent
of Brazil’s entire foreign sales. With exports
outstripping imports, the agribusiness bal-
ance of trade had a surplus of US$ 81.86 bil-
lion, compared to the US$ 71.31 billion in
the previous year. It is the second biggest
surplus in the balance of trade of Brazil’s
agribusiness on record, only coming after
2013, when it was US$ 82.91 billion.
Again, the soy complex is the product
that contributed the most to the bigger ex-
ports. It is followed by forestry products,
meat, cereals, flours and preparations, and
by the sugar and alcohol complex. It is this
immense productive and industrial envi-
ronment that
Revista AgroBrasil – Balan-
ço Brasileiro do Agronegócio 2017/2018
details and describes, in their production
andmarket realities. The profile of about 18
supply chains, with strong social and eco-
nomic impact across all regions in Brazil, is
detailed in this publication. It is our expec-
tation that in thenext editionwewill be able
to announce evenmore positive news, in all
productive sectors.
Happy reading!
Inor Ag. Assmann
8
