Performance of Brazilian agriculture during the first year of Covid-19

The Coronavirus pandemic began during the harvest of the 2019/2020 summer harvest and the beginning of the implementation of the 2020 autumn-winter harvest (safrinha). Both harvests were completed, but we cannot say normally, as the tension was great. In October 2020, a new summer harvest began, with some setbacks due to irregular rainfall distribution, but with results that can be considered good. The exception occurred in the states of Tocantins, Mato Grosso and Paraná, where rains made the harvesting operation difficult and delayed the sowing of second crop corn (safrinha).

According to the National Supply Company (CONAB), the 2020/2021 grain harvest is expected to be 272,3 million tons, 6% larger than the previous one. The big surprise is the price of the main agricultural products. The price of cotton increased by 47,0%, corn by 39,4%, soybeans by 40,5% and beef prices increased by 33,5%. These price increases are fundamentally due to the increase in internal and external demand. The year 2020 was particularly important for the Brazilian agricultural sector. While the growth of Brazil's total GDP was negative, that of agriculture showed growth of 24,2% in relation to 2019, reaching a share of 26,6% of total GDP, according to data released by the Center for Advanced Studies in Applied Economics (CEPEA/USP), in partnership with the Brazilian Confederation of Agriculture and Livestock (CNA).

The good harvest results for most products and regions in Brazil, associated with remunerative prices, have encouraged producers to modernize production processes, with the use of cover crops aiming to improve and/or maintain soil quality. It is also worth highlighting the advancement in the incorporation of digital agriculture, providing the optimization of agricultural operations and the logistics of the entire process. Although the coronavirus pandemic has caused significant changes in the habits and customs of the world population, the demand for some products such as cotton, cellulose, meat and sugar has increased considerably. Brazilian beef exports increased by 8% in 2020 and pork exports by 36,1%, compared to 2019. Producers had to adjust their production practices, incorporating biosafety measures, to minimize the consequences of a possible occurrence of the disease. among its collaborators. Due to the favorable moment for agricultural production, in several regions where agriculture predominated, there was an increase in crop-livestock integration. This production model gives greater dynamism to agricultural activity, with better use of resources and, consequently, increased productivity.

The set of transformations that are taking place in Brazilian agriculture places Brazil in a prominent position in the production of food, fiber and energy. In order for us to continue occupying this position, both in the domestic and foreign markets, we also need to pay attention to the quality of the products, as buyers are increasingly demanding. Therefore, the quality of the product is as important as productivity, and it may not find a market if it does not meet this requirement. Production conditions, such as meeting animal welfare issues for meat production, are also considered at the time of marketing. Thus, traceability gains increasingly solid contours and for several products. In summary, it is observed that during 2020, the first year of the pandemic, Brazilian agriculture advanced in both the quantitative and qualitative aspects of production, contributing to the national economy, especially the growing share of agricultural products in exports.

Fernando Mendes Lamas, Researcher at Embrapa Agropecuária Oeste