Projections for agribusiness in Brazil in 2022

Agribusiness in Brazil is growing steadily, with a focus on competitiveness and modernity, based on the use of technology to improve performance. Each year, Brazilian agribusiness reaches a new record, thanks to the increase in productivity, the planted area, and the new machines and technologies employed in farming.

According to Conab, the Brazilian agricultural sector maintained a solid growth trajectory in 2021 and 2022, only slightly impaired in the current harvest by climatic problems resulting from the La Ninã phenomenon.

Despite the concern with the rising prices of agricultural products, the future economic outlook remains favorable for the sector. This is due, in part, to the progress of the fight against the pandemic through vaccination and the prospect of a return to normality.

In this article, we will show the performance of agribusiness in Brazil in 2021 and the projections for the sector in 2022.

2021 results were below expectations

According to the Institute for Applied Economic Research (Ipea), Brazil’s agricultural GDP grew less than expected in 2021 after drought and frost brought down corn and sugar cane crops.

The sector’s GDP growth was revised from 2.6%, in the June forecast, to 1.7%. The adjustment in the projections was motivated, in the first place, by the reduction in productivity and production estimates of important crops, such as corn, due to the impacts of the La Niña phenomenon, and by the worsening scenario for cattle production.

Still, the positive performance was sustained by increases in soybean (+9.8%), wheat (+36.0%), and rice (+4.1%) production.

Sugarcane also suffered the effect of frost and drought, as did coffee, which was already in a year of low productivity in the biennial cycle of Arabica. In coffee, however, the impact of frosts on production is expected to be felt in 2022, according to experts.

In animal production, the forecast was revised from 2.5% to 1.8%, with growth for all segments, with the exception of beef production, with a drop of 1.0%. The expected performance is positive in the production of the other proteins:

• +7.7 for pigs
• +3.9% for chickens
• +3.1% for Milk
• +4.5% for eggs

The main risks of the growth projection released by Ipea are related to the climatic effects on crop production and the delay in the resumption of cattle slaughter. However, the climate models point to a milder La Niña phenomenon in the second half of the year, with more regular rainfall in summer crops and milder temperatures in winter.

Get to know the forecasts for agribusiness in Brazil in 2022

The first forecast for 2022 points to a 3.3% growth in the Agricultural GDP, based on projections this Thursday announced by IPEA and the National Supply Company (Conab). Conab sees new record harvests for the planting cycle that started in September.

Ipea researchers estimate a 3.9% growth in the value of vegetable production and 1.8% in animal production. The expectation is to maintain the good performance of soy production, which should reach a new record in 2022, and a good recovery in crops such as corn and cotton, after the strong fall projected for this year. Besides this, the slaughter of cattle is expected to recover after two consecutive years of decline.

See how technology contributes to increased productivity

Mechanization and new technological solutions are increasingly helping the work in the field, bringing great advances to our productive capabilities.

Robustec road equipment brings more efficiency and speed to the transportation sector. The solutions include equipment such as dump buckets (bulk, half-cane, earthmoving, construction material, trencher, and the innovative trilateral bucket), dry cargo metal body, and Roll On Roll Off board. Mounted directly on the truck chassis, this compact equipment offers safety and robustness in the most varied applications, optimizing performance and reducing costs.

With the use of these road implements, it is possible to load and unload almost all the goods that can be placed on the truck chassis. This equipment brings solutions capable of optimizing the transportation of the most diverse types of loads with agility and practicality, allowing a wide flexibility in logistics and cost reduction.

As we have seen, Brazilian agriculture will continue to grow significantly in the coming years. Despite a lower growth rate than expected in 2021, the scenario remains promising and presents many opportunities for the rural man.

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