Minas Gerais agribusiness GDP exceeds R$228 billion in 2023

Figures from the João Pinheiro Foundation show that the sector represents 22,2% of the State’s total GDP

10.06.2024 | 14:44 (UTC -3)
Minas Agency
Photo: Dirceu Aurélio
Photo: Dirceu Aurélio

The Gross Domestic Product (GDP) of agribusiness in Minas Gerais broke a record with a value of R$228,6 billion in 2023, equivalent to 22,2% of the State's total GDP in the same year. Real growth was 6% with an average price variation of 0,2%. In comparison with the result of 2022 (R$ 215,4 billion), there was an increase of R$ 13,2 billion in the calculated value.

According to estimates released by the João Pinheiro Foundation (FJP), this result demonstrates the significant increase in the production of coffee, soybeans, sugar cane and corn, even with the lower evolution of the prices of these products considered primary.

The presentation was held today, at the headquarters of the Federation of Agriculture and Livestock of the State of Minas Gerais (Faemg), in Belo Horizonte, and was attended by the vice-governor, Professor Mateus, the secretary of Agriculture, Livestock and Supply, Thales Fernandes, the president of Faemg, Antônio de Salvo, among other authorities.        

"For the Government of Minas, it is a pleasure to be able to present this data. This demonstrates the evolution we have made since 2019", said vice-governor Professor Mateus.

“The increases in GDP in every year, in all sectors, show that agriculture is growing more than the average for the general economy of Minas Gerais. These numbers are also very impressive, as prices in 2022 were higher than in 2023, so we grew in total value, even with a reduction in commodity prices. This shows that our rural producer is making great strides in productivity”, he highlighted.

The growth in agribusiness GDP also reflects the advance in the manufacturing of food, beverages, cellulose and biofuels, for example. In addition, in the case of agroindustry and related services, an increase in quantities produced was accompanied by improvements in prices charged.

In the case of forestry production, which is also part of the agribusiness activity chain, the strong demand for wood for cellulose production was complemented by the maintenance, on a large scale, of the demand for charcoal and firewood for metallurgy in Minas Gerais.

In the opinion of Secretary Thales Fernandes, the numbers reflect the result of the work that the Government of Minas has been doing to increasingly strengthen this sector.

“It is the result of the investment in the Department of Agriculture and its affiliates, IMA, Emater-MG and Epamig. This is also due to the strong partnership we have with Faemg and the diversity of our agricultural production. Minas is not just commodities, like coffee, eucalyptus or sugar cane. We have a very large diversity of value-added products, such as cheese, olive oil, wine and cachaça and we have worked together to ensure that these value-added products also contribute to GDP growth", he said.

The president of Faemg, Antônio de Salvo, highlighted the dialogue between this management and the agricultural sector. “We are aligned with the Executive. The government understands the needs of producers. In all my years of life, I have never seen such good dialogue between our sector and any previous government. This is a very positive development,” he declared.


Also considering data from the Systematic Survey of Agricultural Production (LSPA) from the Brazilian Institute of Geography and Statistics (IBGE), the result points to the fact that the state soybean harvest increased from 7,6 million tons in 2022 to 8,5 million tons in 2023; that of coffee, from 1,4 to 1,7 million tons; that of sugar cane, from 73,3 to 82,5 million tons; and corn, from 7,8 to 8,3 million.

In terms of prices, based on figures from the Center for Advanced Studies in Applied Economics (Cepea) at the Luiz de Queiroz College of Agriculture (Esalq), soybeans, in 2023, were 22% below the 2022 average; coffee, 24%; that of corn, 25% below.


The methodology created by FJP to calculate agribusiness GDP is based on the Table of Resources and Uses (TRU), an instrument that presents the supply and demand flows generated by economic activities, and the Input-Product Matrix (MIP), which portrays the economy based on TRU data based on the disaggregation between agriculture, livestock and forestry production.

Calculated based on the 2019 MIP, the study referring to 2023 presents annual estimates for the entire agribusiness production chain, represented by the cultivation of products such as coffee and cotton, the demand for fertilizers, the development of agricultural machinery, industrialization of rural products such as oils and cigarettes and the sum of their other components in agroindustry and other related services.

“These numbers reflect this success story. I think the path will be this, and the future will perhaps be even better, especially with the enrichment of our cities and our interior. This is the work of the João Pinheiro Foundation, the production and dissemination of knowledge data that enables economic agents, both the public and private sectors, to make the best decisions”, said the president of the foundation, Luciana Braga.

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