Food industry lower production contributes to sector's drop in 6 states in April
June 09, 2017 09h00 AM | Last Updated: July 18, 2017 04h06 PM
The output decrease in 6 of the 14 Brazilian states surveyed by the IBGE, in April 2017 over April 2016, was determined to a large extent by the activity of food products. With a 8.1% decrease in the total production, São Paulo showed, in April, the greatest reduction ever in this activity (- 27.9%), since the survey started in 2003.
The decisive factor for the food industry drop in São Paulo, and also in the states of Goiás, Paraná and Minas, was the decrease in the manufacture of sugarcane derivatives (crystallized, VHP and refined sugar, besides sugarcane molasses). In Mato Grosso and in Pará, the industrial output shrank 6.2% and 3.8% in April 2017 over April last year, with a strong influence as well of food industry, which had decreases of -9.2% and -14.8%. The reduction of the food industry in those states had a direct relation with the Federal Police operation called "Carne Fraca" (“Weak Flesh”).
"The states where the production of sugarcane derivatives and beef have a great importance recorded a negative performance in April", explained Rodrigo Lobo, economist of the Department of Industry of the IBGE.
The Monthly Survey of Industry - Regional Physical Production also shows that the industry grew in 5 of the 14 places surveyed, in April over March, with a highlight to the advance of 1.2% in Santa Catarina, of 0.6% in Pernambuco and Ceará and of 0.5% in Minas Gerais.
