The Brazilian agroindustry declined 1.6% in terms of the cumulative index in 2012, a figure lower than that observed in 2011 (-2.2%) and in the overall industry in 2012 (-2.7%). The sectors related to agriculture (-2.4%), with the highest weight in the overall agroindustry, as well as the sectors related to livestock (-5.4%), showed a negative performance in the cumulative index in 2012. However, the group of insecticides, herbicides and other pesticides for use in agriculture rose 25.5% in 2012, whereas the segment of wood increased 3.5%. On a quarterly basis, compared with the same period in the previous year, the agroindustry showed a positive figure of 3.5% in the first quarter of the year, declined 9.8% and 3.0%, respectively, in the second and third quarters and rose again in the last one (5.1%).

The fall in the agroindustry in 2012 occurred mainly due to the contraction in livestock (-4.3%), highlighted by poultry (-6.0%), cattle and pigs and hogs (-4.2%), as well as in agriculture (-3.0%), highlighted by the smaller production of tobacco (-13.4%), orange (-12.9%), soybean (-4.3%) and sugarcane (-2.4%). On the other hand, it is important to mention the growth in the sector of machinery and equipment (3.1%), besides the increase in pesticides for use in agriculture (25.5%).

The complete publication can be accessed on page https://www.ibge.gov.br/home/estatistica/indicadores/industria/pimpfagro_nova

Agricultural products: Orange and tobacco the highest falls

The sector of industrial products of agriculture fell 3.0%, showing negative rates in six out of eight sectors surveyed. Orange products was the highest fall (-12.9%), followed by tobacco products (13.4%), due to the drought in the South Region (particularly in Rio Grande do Sul, the largest producer with around 50% of the national volume). The other negative contributions came from soybean products (-4.3%), due to the drought in the South, as well as from corn (-2.5%) and rice products (-0.4%), as a result of the reduced harvest. Sugarcane products also decreased the production (-2.4%), both in the manufacturing of crystallized sugar (-5.3%) and alcohol (-2.0%). The positive contributions came from wheat (5.0%) and pulp products (1.3%), mainly pushed by exports.

While the agricultural products declined in 2012, the harvest of grains reached a record of 162.1 million metric tons according to the Systematic Survey of Agricultural Production (LSPA), a figure 1.2% higher than in 2011 (160.1 million metric tons).

Industrial products used in agriculture grew 1.4% in 2012, due to the increase in the manufacturing of machinery and equipment (3.1%) – pushed, above all, by the increase in the agricultural income as a result of the record harvest and high international prices of most commodities –, as well as in the production of manure and fertilizers (0.5%).  Both the increase of the internal market and the expected outlook of the harvest in 2013 explain this performance.

Livestock products have widespread fall

By declining 4.3% in 2012, this sector registered the highest negative index in poultry products (-6.0%), pressed by the increase in the production costs, due, in turn, to the rise in the prices of soybean and corn, basic input for the production of ration. There was also a fall in leather and hide products (-5.2%), as well as in cattle and pigs and hogs (-4.2%) and milk products (-1.0%), both affected by the drought in the pastures.

The sector of industrial products used in livestock declined 9.3% in 2012, highlighted by the segment of veterinary products (-20.3%), followed by the decrease in the production of rations and vitamin supplements (-7.0%), due to the increase in the costs of inputs (soybean and corn bran), which negatively affected the demand.