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Production value hits record, but 2021 crop does not surpass last year's

Section: Economic Statistics | Irene Gomes | Design: Brisa Gil

September 15, 2022 10h00 AM | Last Updated: September 23, 2022 11h42 AM

  • Highlights

  • Value of agricultural production in the country reached a record of R$ 743.3 billion in 2021, an increase of 58.6% compared to the previous year.
  • After two consecutive years of records in the series, grain harvest drops 0.4% in 2021.
  • Mato Grosso had the highest production value, with R$ 151.7 billion, an increase of 91.5%. Then, with an increase of 138.4%, Rio Grande do Sul reached R$ 90.8 billion. São Paulo, with R$ 84.1 billion and growth of 23.7%, ranked 3rd.
  • Among the municipalities, the leader in agricultural production value, for the third consecutive year, was Sorriso (MT), reaching R$ 10 billion, an increase of 86.4% compared to 2020. Then comes Sapezal (MT) with R$ 9.1 billion and an increase of 111.6% in the year. In third position, comes Rio Verde (GO), with R$ 7.7 billion, an annual increase of 131.1%.
  • With a total of 134.9 million metric tons, national soybean production grew by 10.8%. The value of production grew 102.1%, totaling R$ 341.7 billion in 2021.
  • Corn crop had a retraction of 14.9%, reaching 88.5 million metric tons. Even so, the production value of this culture rose 60.7% and reached R$ 116.4 billion.
  • After four successive years of increase, cotton production fell by 19.2% to 5.7 million metric tons. The planted area was reduced by 16.1%. Even so, the value of cotton production grew 38.6%, reaching R$ 26.5 billion.
  • Wheat production grew 24.1% compared to 2020 and reached a record: 7.9 million metric tons.
Production value of soybeans grow 102.1% in 2021 and hits R$ 341.7 billion - Photo: Jaelson Lucas/AEN-PR

The production value of the country's main agricultural crops reached the record of R$743.3 billion in 2021, an increase of 58.6% over the previous year. The grain harvest, in turn, after two consecutive years of records in the time series, showed a slight reduction of 0.4%, totaling 254.4 million metric tons. The country's planted area, considering all crops, totaled 86.7 million hectares, an increase of 3.3 million hectares, 3.9% higher compared to 2020. The data are from the survey of Municipal Agricultural Production, released today (Sept 15) by the IBGE.

“2021 was still affected by the Covid-19 pandemic, which brought as a consequence high demands for agricultural commodities all around the world and the appreciation of the Dollar against the Real. This resulted also in the great increase of agricultural prices in 2021 in the comparison with the previous year”, explains survey supervisor Winicius de Lima Wagner.

Soybeans, corn, sugarcane, coffee and cotton were the five top products in the ranking of production value, respectively, and all of them showed increase in the value generated. In terms of amount produced, however, just soybeans grew, reaching a new record. Other products that increased their production were wheat, which hit the record, and rice.

“Weather conditions favored most of the summer crops, but long periods of drought in winter and fall and also severe frosts damaged cultivation of the second crops, with losses recorded mainly in corn, beans, sugarcane and coffee”, says the supervisor.  He adds that, despite the slight retraction, the year of 2021 presented a good crop result. “As 2020 was a year of record harvests, we have a very high basis for comparison.”

Mato Grosso concentrates 1/5 of the production value of the country

The Federation Units with the highest production value was Mato Grosso. major producer of soybeans, corn and cotton in the country. In 2021, the state’s production generated R$151.7 billion, a rise of 91.5%. Nearly 1/5 (20.4%) of the value of the country’s agricultural production is concentrated on the state.

Next, with a rise of 138.4% in the production value, Rio Grande do Sul reached R$90.8 billion. The state showed recovery in the crop of soybeans, after losses in 2020, and its participation in the national production value went from 8.1% in 2020 to 12.2% in 2021.

São Paulo, with R$ 84.1 billion, stood at the third position. Despite the 23.7% increase, São Paulo lost participation in the national production value, as it moved from 14.5% to 11.3%.

“All those three states hit records in the production value. On the other hand, the negative highlight was Paraná, which had severe losses with the droughts during the 2nd crop harvest, and feel from the 2nd to the 4th position.  But, even so, it recorded increase in the production value. Just Amapá and Amazonas, less agricultural states, had retraction in the generated value”, said Mr. Wagner.

Among the municipalities, the highlight was, for the third time in a row, Sorriso (MT), which accounted alone fro 1.3% of the total production value, reaching R$10 billion reais, a growth of 86.4%.  “Sorriso stands out with the production of soybeans and corn, the two major cultures of the country.”

Next, comes the municipality of Sapezal (MT), major national producer of cotton, with a growth of 111.6%, reaching R$9.1 billion, i. e., more than twice as the value reached a year ago. In the third position, Rio Verde (GO) has R$7.7 billion, a growth of 131.1%. The municipality has as major products soybeans and corn.

Two municipalities jumped in the ranking between 2020 and 2021: Diamantino (MT), which increased by 125% its production value, leaving the 10th position to occupy the fifth, and Querência (MT), which left the 18th position, increasing by 144.9% its production value. “Diamantino stands out with the production of corn, soybeans and cotton. Querência has as major products corn, soybeans, beans and cotton”< explained Mr. Wagner.

It is worth mentioning that out of the 50 municipalities with the highest production values, more than half (26) are in Mato Grosso and six are in Goiás, consolidation the Central-West Region as the propeller of the national agriculture.

With high prices, soybeans hit records and doubles production value

The soybean harvest in 2021 was marked by record numbers of production, planted area and average yield, consolidating the country as the world's largest producer and exporter of the grain, according to data from the Department of Foreign Trade (SECEX). With a total of 134.9 million metric tons, national production increased by 10.8% over the previous year. The value generated by soybeans grew 102.1%, totaling R$341.7 billion in 2021.

“With prices remaining high since 2019, producers are encouraged both to expand areas and to invest in inputs to improve productivity”, explained the supervisor.

The highlight in soybean production was Rio Grande do Sul, with a growth of 80.6% compared to 2020, an increase of 9.1 million metric tons. Mato Grosso, the largest national producer, had an increase of 0.8% in production and reached 35.3 million metric tons. Paraná, the 3rd largest producer of the grain, registered a drop of 8.0%, reaching 19.2 million metric tons.

Sorriso (MT) generated the highest soybean production value, with R$5.0 billion, followed by São Desidério (BA), with R$4.2 billion, and Rio Verde (GO), with R$3.7 billion.

Weather problems break the 2nd corn crop and production value soars

Corn production, the second product in value in the national chain, had a significant retraction of 14.9% in 2021, reaching 88.5 million metric tons.

“Production suffered the consequences of the drought that devastated the center-south of the country in the months of May, June and July, causing significant losses in productivity. Even with the expansion of the planted area – which hit a record with 19.6 million hectares – there was a drop of 18.3% in the average yield”, justified Mr. Wagner.

Even so, corn accounts for 34.8% of the total production of cereals, legumes and oilseeds and grew by 60.7% in the value generated in 2021, totaling R$116.4 billion. There was an increase in the price of the commodity due to the low supply of the product and the exchange rate at high levels.

“The year 2021 registered a retraction of 40.7% in the volume of corn in grain exported, according to SECEX. It reached 20.4 million metric tons, the lowest level since 2016, when there was also a break in the national grain harvest”, informed the supervisor.

Even with the 4.8% retraction in production, Mato Grosso continues to be the largest corn producer, with 32.1 million metric tons. The production value in the state reached R$38.5 billion, an increase of 101.1%.

Goiás, with a drop of 9.2%, rose to the second position, with 10.8 million metric tons and a production value of R$14.8 billion, an increase of 95.2%. With a retraction of 33.4% in production, Paraná fell to the 3rd position, with 10.5 million metric tons and a production value of R$ 15.0 billion, an increase of 18.8%.

Among the municipalities with the highest production value, Sorriso (MT) stands out, with R$3.9 billion, followed by Rio Verde (GO) and Nova Ubiratã (MT) (R$3.5 billion and R$2.0 billion, respectively ).

With reduced planted area and weather problems, cotton production drops 19.2%

After 4 consecutive years of increase, cotton production fell by 19.2%, totaling 5.7 million metric tons. The planted area showed a reduction of 16.1% and the production value grew 38.6%, reaching R$ 26.5 billion.

“The reduction in the area comes from competition with the production of corn and soybeans, which were at more attractive prices at the time of planting. In addition, the weather factor affected the 2nd harvest and productivity”, explained the supervisor.

Mato Grosso and Bahia concentrate more than 90% of cotton production: while Mato Grosso generated 20.9 billion in value with cotton production, an increase of 62.4%, Bahia totaled 4.1 million, a decrease of 7 .6%. The main municipalities are Sapezal (MT), with R$4.6 billion, followed by Campo Novo do Parecis (MT), with R$2.2 billion and São Desidério (BA), with R$1.7 billion.

Sugarcane and coffee drop in volume, but increase in production value

In 2021, the national coffee production was 3.0 million metric tons, down 19.2% compared to the previous year. However, with the high price of coffee throughout 2021, the production value reached R$ 34.9 billion, a growth of 27.9%. Patrocínio (SP), Pedregulho (SP) and Campos Gerais (MG) stand out in the production value of Arabica coffee, while Rio Bananal (ES), Vila Valério (ES) and Linhares (ES) have the highest values ​​for canephora.

Of the total coffee produced, two million metric tons were of the arabica type, totaling R$ 26.8 billion in production value. The volume of canephora coffee broke a record and registered a growth of 16.5%, totaling 1.0 million metric tons, which generated R$ 8.1 billion. Minas Gerais and São Paulo are the main producers of arabica coffee, while Espírito Santo, Bahia and Rondônia stand out in the production of canephora coffee.

“Coffee goes through biological cycles that alternate abundance in the production and physiological recovery of the plant. We have the inverted biennial, that is, negative for arabica and positive for canephora”, explained the supervisor.

Sugarcane had the 3rd highest production value among the survey products, R$ 75.3 billion, an increase of 24.4%. Uberaba (MG), Rio Brilhante (MS) and Nova Alvorada do Sul (MS) are the three main municipalities in terms of production value.

The volume produced fell by 5.3%, totaling 75.7 million metric tons. Mr. Wagner explains that “this drop was caused by the reduction of the cultivated area and by the unfavorable weather conditions in the producing regions”.

Wheat production hits record

Two other products with positive highlights were wheat and rice. Wheat production reached a record 7.9 million metric tons, a growth of 24.1% compared to 2020. “This increase was mainly a consequence of the expansion of the harvested area by 13.1% and the growth of 9, 8% of the average yield, in a year of favorable weather conditions for wheat production in the south of the country”, explained the supervisor.

He added that the increase in the amount produced and the appreciation of the market price allowed the culture to reach almost R$11 billion in production value, a growth of 62.4%. The highest values ​​of wheat production came from the municipalities of Itapeva (SP), Tibagi (PR) and Palmeiras das Missões (RS).

Rice, with a modest growth of 0.6% in planted area, jumped by 5.1% and reached 11.7 million metric tons produced. The production value grew 64.6% and reached R$ 19.1 billion. Uruguaiana (RS), Santa Vitória do Palmar (RS) and Alegrete (RS) are the highlights in terms of rice production value.

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