With record soybean and corn values, VBP is estimated at R$716,6 billion

The Gross Value of Agricultural Production (VBP) for 2020, based on data from June, is estimated at R$716,6 billion, 8,8% above that obtained in 2019 (R$658,8 billion). The value of crops grew by 11,6% and that of livestock, by 3,4%. The increase in the value of crops is mainly due to the performance of rice (12%), soybeans (19,8%), corn (13,7%), coffee (39,3%) and oranges (9,8%) .

These five products have been driving crop revenue, according to the study by the Credit and Information Department of the Agricultural Policy Secretariat of the Ministry of Agriculture, Livestock and Supply.

“Corn and soy obtained record values ​​throughout the historical series since 1989: R$76,1 billion and R$173,5 billion, respectively”, points out the research coordinator, José Garcia Gasques. In livestock, growth has been stimulated by beef (11,8%), pork (5,6%) and eggs (15,5%). 

Other products have performed well, such as peanuts, cocoa, sugar cane, beans and wheat. Unfavorable performance is observed in herbaceous cotton, banana, potato, castor bean, tomato and grape crops.

“In addition to the favorable results of this year's grain harvest, which according to Conab is forecast at 251,4 million tons, agricultural prices are also an important factor in guaranteeing the results that have been observed”, explains Gasques.

Livestock farming has benefited from good international market conditions. From January to June this year, exports of meat, beef, pork and chicken generated revenue of US$8 billion (Agrostat, 2020). The value of beef exports was US$3,927 billion, pork, US$1,07 billion, and chicken meat, US$3,09 billion. During this period, soybean exports generated US$23,928 billion.

The results of the regional VBP indicate Mato Grosso leading the ranking with 17,5% of the value, followed by Paraná (12,8%), São Paulo (12,7%), Minas Gerais (10,7%) and Goiás (8 %).

Indicator

The Gross Value of Agricultural Production (VBP) is an indicator of agricultural performance. It is also considered an indicator of revenue. With monthly updates, its calculation is made for Brazilian states and regions, with data on 21 crop products and five livestock activities. 

The VBP is obtained by multiplying the quantity produced by the price received by the producer. As harvest estimates released monthly refer to the forecast for the year, the VBP estimate is also annual. In livestock farming, as IBGE information is quarterly, quantity information is updated every three months.

The source of production data is from the IBGE Systematic Survey of Agricultural Production (LSPA). For livestock products, the source is also the IBGE. Prices are from Conab (National Supply Company) and CEPEA – USP (Center for Advanced Studies in Applied Economics), an organization of the University of São Paulo. The real values ​​are obtained using IGP-DI from Fundação Getúlio Vargas. 

See here VBP Regional and Brazil