Brazilian agriculture industry decreased 5.4% in the first semester of 2009
August 05, 2009 09h00 AM | Last Updated: August 23, 2018 03h15 PM
In the first semester of 2009, Brazilian agriculture industry decreased by 5.4%, below the result registered in the same period of 2008 (4.1%), but above the one registered for the average of general industry (-13.4). The sectors related to agriculture (-3.5%) presented a less intense fall than the ones related to livestock (-4.0%). For the group insecticides, herbicides and other substances for use in agriculture, the retraction was 27.0%, while wood suffered a decrease of 21.7%.
On a quarterly basis, agriculture industry presented negative results in the first two periods of 2009. After decreasing by 6.7% in the first quarter, it reduced the falling rhythm for the second (-4.3%) due to the improvement in agriculture (from -5.5% to -2.1%), while livestock showed an opposite movement (from -3.1% to -5.0%).
The result of the first semester of 2009 for agriculture was negatively influenced by the dry weather that began in the last quarter of 2008, and affected especially the South Region, the main producer of the country, and by the smaller use of manure and chemical substances, which contributed to the reduction of productivity and production. According to the Systematic Survey of Agricultural Production (LSPA) of June, the 2009 grain harvest is estimated to be of the order of 133.3 million tons of grain, result that was 8.7% inferior to the record harvest of 2008 (146.0 million tons).
Exports, due to the international crisis, presented decrease in volume and price of most exported livestock commodities, accounting for the negative result of agriculture industry. According to data from the Secretariat of Foreign Trade (SECEX/MDIC), until June 2009 the exported volume of the main agriculture products changed as follows, in comparison to the same period of 2008: poultry pieces and giblets (-5.6%), frozen beef (-14.3%), cattle rawhide and leather (-32.1%), orange juice (-4.0%), alcohol (-25.2%), and crude soybean oil (-8.4%). On the other hand, there was increase in the exports of sugar (50.5%), ground soybeans (40.2%), and bagasse and other residues of soybean oil extraction (9.3%).
Industrial Products from Agriculture
The sector of industrial products from agriculture grew 0.8% in the first semester of 2009, with positive results in three out of the eight surveyed subsectors. This is principally due to the increment in sugarcane derivatives (14.1%) stimulated by the increased production of crystallized sugar (23.3%) for export1 (50.5%), and of alcohol (7.9%), explained by a higher internal demand caused by the increased fleet of bio-fuel vehicles. Other positive contributions came from rice (6.7%), a product directed to the internal market, and from corn (4.4%), a basic input for the production of animal food for fowl and hogs and pigs. The negative contributions came from soy derivatives (-3.3%) due to the expected harvest reduction in 5.1%, wheat (-4.3%), cellulose (-2.3%), tobacco (-0.6%), and orange (-12.7%), the last one greatly affected by export reduction.
Industrial Products used in Agriculture
The sector of industrial products used in agriculture presented retraction of 28.3% because of the decreasing production of agricultural machinery and equipment (-36.6%) and manure and fertilizers (-23.3%). The poor performance in this group was influenced by the decrease in agricultural income due to the reduced external demand and prices of agricultural commodities; by the more selective credit, besides the increased costs during the planting period of 2009 harvest.
Exports were also affected by the weaker international demand, as shown by statistics from the National Association of Vehicle Manufacturers (ANFAVEA). According to this source, the exported amount of harvesting machines and tractors decreased, in the first semester, respectively, by -58.3% and -44.7%.
Industrial Products used in Agriculture
The sector of industrial products used in agriculture presented retraction of 28.3% because of the decreasing production of agricultural machinery and equipment (-36.6%) and manure and fertilizers (-23.3%). The poor performance in this group was influenced by the decrease in agricultural income due to the reduced external demand and prices of agricultural commodities; by the more selective credit, besides the increased costs during the planting period of 2009 harvest.
Exports were also affected by the weaker international demand, as shown by statistics from the National Association of Vehicle Manufacturers (ANFAVEA). According to this source, the exported amount of harvesting machines and tractors decreased, in the first semester, respectively, by -58.3% and -44.7%.
Industrial Products from Livestock
The sector of industrial products from livestock presented retraction of 4.1%. Poultry derivatives decreased by 3.3% because of the reduction in exports provoked by a weaker external demand, mainly from Asia and the European Union. Derivatives of cattle and hogs and pigs livestock decreased by 3.5% due to the smaller amount exported to Russia and the European Union. The production of milk, a product mostly directed to the internal market, decreased by 2.7%, while that of rawhide and leather decreased by 18.9%, greatly affected by exports.
Industrial Products used in Livestock
The sector of industrial products used by livestock decreased by 3.8%, with a decrease of 10.0% in the group animal food, of greater importance, as well as an increase of 28.1% in veterinary products.
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[1] According to data from SECEX/MDIC.