VBP for agriculture remains stable in 2019

The Gross Production Value (VBP), which measures the gross revenue of the activity within the gate, should have a slight drop of 0,2% in 2019, a practically stable result compared to last year, totaling R$ 609,7 billion, according to forecasts from the Brazilian Agriculture and Livestock Confederation (CNA).

Livestock farming will be responsible for ensuring stability. The sector's VBP should close the year at R$ 232,9 billion, an increase of 7% compared to 2018. The highlights are pig farming, which should grow 22,9%, and poultry farming, with an increase of 14,2%, mainly due to greater demand due to swine fever in China.

For beef, the projection is for a 3,6% expansion in VBP in 2019, compared to 2018, while for milk the estimate is for an increase of 8,7%. The egg sector is expected to fall by 12,7%, reflecting the reduction in layer housing.

Agriculture will see a 4,1% drop in VBP, totaling R$376,8 billion. Coffee, sugar cane and soybeans are among the main crops that will see a drop in prices and production, which should impact VBP this year.

In the case of cotton and corn, despite lower prices, the increase in production will guarantee, in the two crops, increases of 13,1% and 15,8% in VBP, respectively.