After records in 2020 and 2021, agricultural GDP falls 4,22% in 2022

The GDP of Brazilian agribusiness, calculated by Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, in partnership with CNA (Confederation of Agriculture and Livestock of Brazil), fell 4,22% in 2022. This scenario was recorded after GDP reached successive records in 2020 and 2021, with this biennium being characterized as one of the best in the recent history of Brazilian agribusiness. 

According to Cepea researchers, the main basis for the downward scenario in 2022 is the sharp rise in input costs in the sector, both in agriculture and agro-industries, which has eroded GDP along the chains. Considering the performance of the Brazilian economy and agribusiness, the sector's share in the total reached 24,8% in 2022, below the 26,6% recorded in 2021.

While the GDP of the agricultural sector fell by a significant 6,39%, that of livestock increased by 2,11%. Cepea researchers indicate that the negative GDP result for the agricultural sector was linked to the sharp rise in input costs for agricultural production within the farm, such as fertilizers, pesticides, fuels, seeds and others. This increase in costs largely exceeded the growth in revenue: considering the weighted average of the different crops monitored, there was a real increase of 6,44% in revenue and a real increase of 37,4% in input costs. Furthermore, agricultural GDP was also pressured by the reduction in production of important crops, especially soybeans, which have a significant weight in GDP.

As for the livestock sector, GDP growth in 2022 was linked to advances in the primary and agro-services segments. In the primary segment, the increase was due to some increase in the gross value of production (higher production, given the lower prices compared to 2021), added to the reduction in input costs; in the latter case, in relation to the significantly high level reached in 2021.