Agribusiness GDP falls 2,99% in 2023

The Gross Domestic Product (GDP) of Agribusiness closed 2023 with a drop of 2,99% compared to 2022, according to the Brazilian Confederation of Agriculture and Livestock (CNA) and the Center for Advanced Studies in Applied Economics (Cepea).

With this result, the sector reduced its participation in the country's total GDP in the period, from 25,2% in 2022 to 23,8% last year. The behavior of Agribusiness GDP in 2023 was driven by the drop in prices in all segments of the production chain.

The GDP result released by CNA and Cepea presents data from the entire production chain, that is, “before, inside and after the gate” (inputs, agricultural production, agroindustry and agroservices).

The methodology adopted is based on the product's perspective, at market prices. It is a different assessment in relation to the GDP released by the Brazilian Institute of Geography and Statistics (IBGE), which is focused on the result within the gate (agricultural production). 

According to CNA and Cepea, the input segment was the most impacted, with a drop of 23,57% in 2023 compared to the previous year, affected by the drop in prices of fertilizers, inputs, feed and the lower production of agricultural machinery.

The primary sector saw a decline of 1%, while agroindustry and agroservices saw drops of 2,05% and 1,31%, respectively. In this context, there was a reduction in the prices of several agricultural and agro-industrial products, say CNA and Cepea.

However, the result was no longer unfavorable due to record agricultural harvests and greater production in the primary and agro-industrial livestock segments, which boosted demand for agro-services.

Agriculture and livestock – In the separate assessment by activity, agricultural GDP fell by 3,26% in 2023 compared to 2022. Only the primary sector (from the gate inwards) had a positive result, with an expansion of 5,11%, benefiting due to record production and falling input costs.

The input segment, once again, was the most affected, with a drop of 27,92%, driven by the drop in fertilizer and input prices and lower production of agricultural machinery. There was also a decline in industry (3,43%) and services (3,24%).