The vegetable production chain and the gross value of production

The Brazilian vegetable market is highly diversified and segmented, with dozens of vegetable crops being sold and consumed in different regions of the country. A large part of the vegetables in Brazil are sold by small farmers, generally known as “family farmers”, where production has been primarily aimed at the domestic market.

Vegetables, without a doubt, are important sources of vitamins, minerals, fiber and antioxidants. However, their consumption in our country remains well below the daily values ​​recommended by health institutions. This low consumption has also been accentuated by the economic scenario, inflation and low purchasing power of the population.

Vegetable agribusiness allows the generation of a large number of jobs, especially in the primary sector, due to the high demand for labor in the various stages of production, including sowing, cultural treatments, harvesting, processing and marketing. This production chain is quite dynamic and presents several challenges, where there is year-round production in different regions of the country, with different levels of technology, productivity and cash flow for investment.

Vegetables are more profitable than other crops, such as grains, for example, with a much more complex reality, and the success of businesses with this production chain depends on several factors. It is known that vegetables are temporary crops and, therefore, require a greater initial investment, and in recent years there has been a significant increase in production costs. As an example, only in garlic cultivation, according to the recent survey by the National Supply Company (Conab), carried out in the four main producing regions of the country, the production cost in 2022 exceeded R$ 200 thousand per hectare, a value that verified in the main producing region in Brazil, in São Gotardo, MG. It is worth mentioning that this region, together with Cristalina (GO), are the main producers of garlic in the Brazilian cerrado and have the most technologically advanced farms in this crop, according to the National Association of Garlic Producers (Anapa).

The Gross Production Value (VBP) of agriculture, which projects the revenue of the primary sector within the framework, should have broken a record and reached R$ 1,32 trillion in 2022, an increase of 2,1% compared to 2021, according to estimates of the Brazilian Agriculture and Livestock Confederation (CNA). In this scenario, the VBP in 2022 of the main agricultural chains was: soybeans (R$ 385,2 billion), corn (R$ 165,5 billion), sugar cane (R$ 80 billion), coffee (R$ 57,5 .50,1 billion) and cotton (R$XNUMX billion). And the vegetables?

This VBP study mentioned only three production chains: potatoes (R$ 13,2 billion), tomatoes (R$ 11,7 billion) and onions (R$ 4,9 billion). Considering only these three chains, the VBP reached the sum of R$ 29,8 billion, a value higher than that of the rice, beans and many other chains. With this, we can (re)affirm the great importance and dimension of the vegetable production chain for the Brazilian economy.

Compared to 2021, there was an increase in VBP of 99,1% for onions, 40,3% for potatoes and 15,5% for tomatoes. Despite the increase in production costs, the not so favorable climatic conditions in certain locations and the pandemic, the production of these important vegetables was quite reasonable in general in the different producing regions, bringing income to farmers (primary sector), and moving the secondary (inputs and agro-industries) and tertiary (distributors, transporters and traders of agricultural products) sectors.

Warley Marcos Nascimento, General Manager of Embrapa Vegetables