CNA predicts record in the Gross Value of Agricultural Production in 2021

The agricultural Gross Value of Production (VBP) is expected to reach record revenue of R$ 1,142 trillion in 2021, a growth of 15,8% compared to last year, according to an estimate by the Brazilian Confederation of Agriculture and Livestock (CNA), based on January data.

For agriculture, the CNA projects an increase of 19,0%, with gross revenue of R$759,25 billion. The result projected for this year is a reflection of the good expectation of the grain harvest, which should represent 51,4% of the VBP's share.

Also noteworthy is the increase in real prices, until January, of products such as soybeans (25,5%), corn (23,6%), rice (8%) and cottonseed (28,7%).

For livestock, the estimate is for an expansion of 9,8%, with revenue of R$383,45 billion. The main highlight is beef, with an increase of 18% in revenue, as a result of the increase in prices (10,4%) and production (6,9%).

Poultry and dairy farming are expected to grow by approximately 3%, while pig production is expected to increase by 1,4%.

According to the Confederation's Technical Communiqué, even with the record revenue estimate for the agricultural sector, most farmers were unable to sell their production at current prices, due to advance negotiations.

The exchange rate devaluation increased the prices of agricultural inputs, putting pressure on margins.

In the case of livestock farmers, despite the appreciation of beef, the rise in grains put upward pressure on the value of feed. Replacement animals (calf and lean cattle), which are at historically high levels, also helped to flatten the rancher's margin.

Click here to read the Technical Announcement in full.