Brazil’s Agribusiness Sector Booming Amid Economic Strife
Brazil’s grain and cereal production is forecast to increase over last year despite wider economic challenges faced by the country, including the loss of investment grade, rampant inflation, and budget deficits.
The country’s 2015 agricultural harvest is estimated to come in at 8.6% higher than last year’s output according to Brazil’s statistics bureau, IBGE – including 210 million tons of oilseeds, cereals, and vegetables. Soybean production is estimated to be up by 11.9%, corn production by 6.5%, and rice production by 3.6%. Coffee and beans are to be the exception – both posting declines in production.
The country’s government crops agency, Conab is also forecasting growth for the country’s agricultural output, albeit, slightly lower than IBGE’s estimate, at 8.2%.
In addition to increased agricultural production, Brazil is likely to see increased agricultural exports. The country is reportedly in final negotiations with 18 countries including Japan, Canada, Mexico, South Korea, Malaysia and Saudi Arabia, for the trade of Brazilian meat products which could generate an additional US$1.95 billion in revenues. And China, the largest dairy importer in the world accounting for the purchase of 14% of all global dairy exports in 2014, has agreed to open its market to Brazilian dairy products after 19 years of negotiations.