FGVAgro indicates a 1% drop in agribusiness in July

The agribusiness industry began the second half of 2025 with a 1% decline in July compared to the same month last year, continuing the slowdown observed since May. This is what FGVAgro's agribusiness production volume survey reveals. For the year, the decline is 0,6%. 

Analysis by researchers at FGVAgro indicates that this loss of dynamism is due to the slowdown experienced by the Brazilian economy itself. According to the experts, the Central Bank's Economic Activity Index (IBC-BR) has been contracting since May, among other reasons due to the highly restrictive monetary policy adopted by the Central Bank to bring inflation closer to its target. 

In the July agribusiness results, the sectors that experienced the greatest slowdown were: Biofuels (-30,4%), Beverages (-8,8%), and Plant-Based Foods (-0,6%). According to the researchers, while the loss of dynamism is almost universal across the Food and Beverage sectors, the contraction among Non-Food Products is due exclusively to the sharp reduction in hydrous ethanol production, reflecting the sugar and alcohol sector's preference for a more sugary harvest.

According to the research, although there have been significant contractions in coffee grinding and orange juice production, it is not yet possible to attribute them to the tariff hike, as the declines observed in July followed the same pattern observed since May.