Agriculture is an important industry in Brazil which contributes massively to the Brazilian economy. This country has immense agricultural resources available to it. Its most significant products in this sphere are coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus and beef. 2019 is definitely a strong year for Brazil's agriculture.
Brazil, agricultural producer
Data from international organisations and the Brazilian government confirm that the country is ranked high among both the world's largest agricultural producers and most productive countries. In terms of revenue, the World Bank states that Brazil is the fifth largest, with US$ 84.6 billion.
A survey by the US Department of Agriculture also confirms the strength of Brazilian farmers. The results reveal that agricultural revenue in Brazil grows at a much higher rate than the rest of the world.
In Brazilian soil, the income of farmers increases at an average 4.28% each year. China is second in this ranking, and the advance was of 3.25%. The U.S. appears in seventh place with 1.93%.
2019 is a strong year for agriculture in Brazil
Brazil is predicting a noteworthy increase in the agriculture production this year. The forecast for the production of cereals, legumes and oil seeds is 236 million tons. This shows an increase of 4.2% compared to last year. The exact number is 9.5 million tons more, according to the Brazilian Institute of Geography and Statistics (IBGE).
Corn exports from Brazil are usually the lowest in May-June period. However, the amount of corn exported in these two months in 2019, indicates that buyers are actively pursuing this alternate market.
As stated, it is a strong year for Brazil's agriculture. Brazil exported 2.4 million Mt of corn in May-June this year, which is significantly higher than an average export of 343,415 Mt during the same period over the last six years, according to the official data.
According to the June estimation by the institute, it is the second largest harvest in the history of the South American country and one of the largest granaries in the world which is surpassed only by 2017 when 238.4 million tons were harvested.
The IBGE projected in its report that the harvested area will increase this year by 3% compared to 2018, with a total of 62.8 million hectares, that is, 1.8 million hectares more than in 2018.
Rice, corn and soy will together account for 92.5% of Brazilian production and 87.3% of the harvested area.
For this year, an increase in production of 17.1% is expected in comparison with 2018, which accumulates a total of 95.3 million tons.
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(Source: OECD)
