Brazilian Agribusiness GDP is expected to decline 0.94% in 2023
President of the Argentine Rural Society, Nicolás Pino, said the organization supports elected president Javier Milei. Pino believes Milei should reduce government intervention in the agricultural sector. “We need to be patient, let the president settle down, start his presidency term, and then we can see what is being done,” said Pino. (SRA)
Chief-economist at the Agricultural Foundation for Development of Argentina, David Miazzo, believes the next few months should see an increase in inflation. “We must be honest with the value of the dollar. We must be honest with the rates… The economy will have an increase in inflation in December, January and February. This is certain, we know it will happen.” (FADA)
Economist Santiago Bausili was confirmed as the new head of the Central Bank of Argentina after the inauguration of President Javier Milei. Bausili was Undersecretary of Finance during the presidency of Mauricio Macri between 2016 and 2017, and then Secretary of Finance until December 2019. (Government of Argentina)
Bolivia participated for the first time as a full member of Mercosur, during the summit meeting on December 7th, in Rio de Janeiro. The Bloc signed a trade agreement with Singapore, the first with an Asian country. Bolivia’s accession creates “an even more significant opportunity for regional integration and possibilities for shared development”, said Brazilian vice-president, Geraldo Alckmin. (Mercosur; Government of Brazil)
Grupo Safras announced the acquisition of trading company Copagri Brasil. Value of the deal was not disclosed, but it involves Copagri’s grain origination, processing and export operations, including a biodiesel plant in Cuiabá, State of Mato Grosso, with capacity to process 700 thousand tonnes of soybean. Copagri had revenues of US$ 510 million in the last fiscal year. (Grupo Safras; Copagri Brasil)
Agricultural sector had the highest average salaries in 42.8% of jobs analyzed in 5 markets by Gupy, specialized in HR management. Guilherme Dias, director of marketing and products at Gupy, attributes the high remuneration in agriculture to the grain harvest record and the increase in exports, which increased formal jobs in the sector. (Gupy)
Agribusiness GDP is expected to decline 0.94% in 2023, compared to 2022. Furthermore, it is estimated that agribusiness GDP in 2024 could fall by up to 2%. According to the technical director of the Brazilian Agriculture and Livestock Confederation, Bruno Lucchi, the main reason for the negative result in 2023 was the unfavorable behavior of prices in all segments of agribusiness. “There are very negative results, including in dairy farming, with a 67% negative margin, largely due to subsidized imports”, said Lucchi. (CNA)
Minister of Agriculture, Carlos Fávaro, said that he is negotiating with the government’s economic team for an additional US$ 101.92 million for the Rural Insurance Premium subsidy program. (Agência Câmara de Notícias)
Pork exports continue to rise, reaching 105.7 thousand tonnes in November. Volume represents growth of 13.2% compared to the same period in 2022, which registered 93.4 thousand tonnes. President of the Brazilian Animal Protein Association, Ricardo Santin, highlights the performance accumulated up to November already equals and exceeds in revenue the total recorded throughout 2022. China remains the main destination for Brazilian pork exports. (ABPA)
Scenario for agriculture is positive, but the drop in corn production is worrying, according to Itaú BBA. Reduction in corn supply could once again put pressure on the margins of poultry and pork slaughterhouses. “Although there was a mismatch and grain prices fell during planting and harvesting of the 2002/23 season, farmers were able to take advantage of the good profitability of previous seasons and problems were limited. There was a significant reduction in sales of machines and implements, it is true, but credit defaults, for example, remain under control. For 2023/24, the expectation is for better margins, mainly due to the reduction in input prices”, according to Pedro Fernandes, director of agribusiness at Itaú BBA. (Itaú BBA)
Chile is suffering the most prolonged and severe drought in the last decades, according to a UN study. Furthermore, the Paraná – La Plata river basin, where Argentina’s agricultural sector is concentrated, suffered the worst drought since 1944. Report from the Economic Commission for Latin America and the Caribbean indicates that countries in the region need to invest between 3.7% and 4.9% of GDP to meet their climate goals. (Cepal)
In the 3Q of 2023, milk collection fell 3.2% compared to the same period in 2022. Prolonged drop in the price paid to milk farmers, difficulty in selling production, and climate volatility put the income of milk farmers at risk. “If we look at what they are paying the farmers, we see that the highest prices occurred in March of 2023. From that month onwards, the prices have been falling,” said Felipe Brigard, president of the National Association of Milk Farmers. According to Brigard, the drop in the price paid to milk farmers was not reflected in lower prices for the final consumer. (Analac)
Cuba opened up its market for fresh eggs from Colombia. “We are pleased to announce this important news for the poultry sector, which will bring great benefits to the national economy, such as the creation of jobs and the transformation of Colombian agriculture,” said Juan Roa, manager of the Colombian Agricultural Institute. (ICA)
Between October 2022 and September 2023, 21.9 million tonnes of white corn were planted, which was the most planted crop in Mexico. Production of grain sorghum and yellow corn reached 4.4 and 3.5 million tonnes, respectively. (Inegi)
Rainfall in the Panama Canal region between April and November was 41% lower compared to the same period in 2022. Continuous drought worsens the logistical bottleneck that affects the passage of ships through the canal. Economist Inga Fechner of ING Research said the effect on commodity prices and the end consumer has so far been mitigated by weak global demand, but higher costs could have a ripple effect in the long term. “It is getting more expensive, and looking for alternative routes will increase costs and perhaps also weigh on final prices,” Fechner said. (PCA; ING Research)
“Government will not implement regulations to cut labor rights in agriculture”, said Jennifer Contreras, minister of agriculture, after protests on a stretch of the Panamericana Sur highway. Protesters were against the supposed possibility of reducing the “Agrarian Bonus”, approved by Law No. 27360/2001, which guarantees an additional amount of 30% of the minimum wage for rural workers. (Ministry of Agriculture)
World Bank has approved a loan of US$ 100 million for Peru, with the aim of supporting irrigation projects. According to the Ministry of Agriculture, 130 subprojects will be implemented, directly benefiting almost 24 thousand people. “With this project, small farmers and their organizations… will increase agricultural yields and their capacity to respond against droughts, floods or frosts”, said the World Bank’s director for Bolivia, Chile, Ecuador and Peru, Issam Abousleiman. (World Bank; Ministry of Agriculture)
Ministry of Agriculture confirms a case of equine encephalitis (alphavirus) in the coastal area. This viral disease, transmitted by the bite of infected mosquitoes, can even manifest itself in humans. (Ministry of Agriculture)
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