FAESP 2022 balance shows Agro São Paulo on the rise

The Economic Department of the Agriculture and Livestock Federation System of the State of São Paulo and the National Rural Learning Service (FAESP/SENAR-SP) released this Thursday (December 8) the São Paulo Agribusiness Balance in 2022 and the Outlook for 2023 .

The data showed the ability of the State's Agribusiness to overcome, which had the best results in the last three years in nominal terms of Gross Production Value (VBP). The projected value of the VBP in 2022 is R$139 billion.

“Agro São Paulo recorded a great capacity to overcome and expressive growth, despite facing several difficulties. We can mention the Covid-19 pandemic, which still has consequences for the world economy, as well as the Brazilian one. The inflationary process also gained strength and became a global challenge. The conflict between Russia and Ukraine, which broke out in February 2022, caused sanctions on the Russian economy, bringing shocks to the prices of inputs and commodities”, stated the president of FAESP, Fábio de Salles Meirelles.

The entity listed the challenges faced in 2022:

• The Russia/Ukraine conflict, which broke out in February 2022, caused sanctions on the Russian economy, bringing shocks to global commodity prices;

• Supply chains around the world are still trying to normalize flows and processes, with strong fluctuations in raw material prices;

• Scenario of low domestic demand, restricted by the population's low purchasing power, which was hit by inflation in 2021 and 2022;

• Weather conditions, with frost and drought;

• Difficulty in accessing funding and investment credit, with suspension of BNDES lines, insufficient resources for the rural insurance premium subsidy program and the increase in production costs in 2022, in the wake of inflation in fuels and fertilizers;

• Slowdown in the pace of imports from China and important foreign markets;

• Elections in Brazil (President, governors and Congress), which always bring a degree of uncertainty and harm investment decision-making.

In terms of prediction, he listed the potential threats for 2023:

• Agricultural taxation;

• Fiscal imbalance and side effects on Agriculture;

• Conflicts in rural areas and legal uncertainty;

• Adoption of a protectionist stance by Brazil;

• Fragmentation of sectoral policies.