What are the prospects for agribusiness for 2020?

As much as the international economic scenario is filled with uncertainties, the prospects for Brazilian agribusiness remain encouraging concerning the other producers that compete with us in the global market.

Among the main commodities exported in the country, such as corn, soybeans, sugar, in addition to beef, chicken, and pork, the forecast is that foreign sales will increase and, consequently, the production volume as well.

Then, see what the main risks and perspectives of agribusiness for 2020 are. Also, check what will be the performance of the items mentioned as a highlight in exports, which demonstrates well the representativeness of Brazil in the segment.

Are the prospects for Brazilian agribusiness for 2020 positive?

It is a fact that Brazilian agribusiness is growing at a slower pace than in the past 10 years. However, its progress is still above the average of other countries.

According to the study Outlook Fiesp 2028 – Projections for Brazilian Agribusiness, which gathers the main forecasts for the segment and will be discussed in greater detail in the last item, the participation of the corn, sugar, soybeans, and meats in the country should increase along the next decade.

For this to be possible, however, agricultural policies depend on the advance of national economic reforms, so that the scenario is of fiscal balance. In this way, measures such as prioritizing rural insurance, for example, can contribute even more to farmers’ income.

With the possible growth of income in this situation, the areas for processing animal products and proteins would also win.

Are there risks in this scenario?

Short-term risks in the national scenario, such as increases in fuel prices and the constant demands for changes in freight rates, may require extra caution for producers.

The biggest impact would be on the costs of those who deal with the production of items that are far from large consumers or ports for the disposal of cargo. This is the case for corn, soybeans, and grains in general.

Another risk that should reach farmers in 2019 is the expiration of the ICMS 100 agreement. He has been responsible for reducing the tax on the segment’s inputs since 1997 and has yet to renew the renovation.

Taking into account that the study mentioned in the previous item aims at the agribusiness perspectives for the next 10 years, it is necessary to keep an eye out for the briefest threats so that they do not compromise the opportunities that may arise in the future!

Keeping an eye on the general scenario foreseen for the decade to come, however, is the best way to know what to expect in the area and ensure the best planning for your production. Learn more below.

What is the expected performance of products with greater market share?

What is the expected performance of products with greater market share?

Still according to information from Outlook Fiesp, the corn crop 2018/19 should be 93 million tons, 14% higher than in the previous period. Exports are expected to close at a 27% increase.

Sugar will also remain positive, with an increase of 0.7%, as will vegetable fuels, which will grow 6%, and sugar cane, which will grow 3% in the 2020 harvest.

Meat should also end this year with a positive balance, with increases in domestic consumption of 1.4%, 1.7%, and 1.4% in beef, chicken, and pork, respectively.

The domestic market is expected to contribute to boosting dairy items, eggs, beans, rice, wheat, ethanol. In addition to corn itself, soy oil and meat, as mentioned above.

On the international stage, sugar is once again the protagonist, as is soy, this time as grain. Coffee, cotton, cellulose, and orange juice should also grow on this basis.

Not all predictions for the opening of 2020, however, are positive.

With a projection of 116 million tons, the 2018/2019 soybean crop will end 3% lower. Because of this, it will require special attention to this category of producers in 2020. Another segment that must remain alert is the planting of coffee, which will end production in the period with a decrease of 8.5%.

And you, are you already aware of the agribusiness perspectives for the coming years? Do you want to receive even more information on the subject to maintain your competitiveness in the area? Then keep following the exclusive content of our blog.