It was a result inferior to that of 2008 (1.7%), but above general industry (-7.4%). The decrease of agriculture industry in 2009 is due to the world economic crisis and to the draught in the South region, with the consequent reductions in the 2009 harvest (-8.3%) and in the investments in agricultural machinery and equipment (-28.7%), in manure and fertilizers (-2.1%) and in substances for use in agriculture (-15.7%).

In 2009, Brazilian agriculture industry faced decrease of 4.9%, a result below that of 2008 (1.7%), but above that registered by general industry (-7.4%). The sectors related to agriculture (-5.2%), which are more relevant to agriculture industry, had more significant decrease than the sectors related to livestock (-1.1%). The group insecticides, herbicides and other substances for use in agriculture was also down (-15.7%), as well as wood, (-13.0%).

Agriculture industry had negative results in the four quarters of 2009: (- 6.7%) in the first, (-4.2%) in the second, (- 5.9%) in the third and (-2.8%) in the fourth one.

Both semesters had falling rates: (-5.3%) in the first and (-4.5%) in the second. The least significant decrease in the second semester resulted from the improvement of livestock, which grew 1.8% in the period.

Retraction (-4.9%) in the production of agriculture industry is related to the world economic crisis, which caused decrease of volume of and prices of several agricultural products exported. There was also influence of the reduction of harvest in 2009 (-8.3%), due to the dry period which reached the South Region and to lower investments in crops. Therefore, there was reduction of agricultural revenue, with fewer investments in agricultural machinery and equipment (-28.7%), fertilizers and manure (-2.1) and agricultural chemicals (-15.7%).

The result of agriculture in 2009 was negatively affected by the dry period, which started in the last quarter of 2008, mainly in the South Region, the main producer in the country. Also relevant was the use of manure and agriculture chemicals, which contributed to the decrease of productivity and production. According to the Systematic Survey of Agricultural Production (LSPA), the grain harvest of 2009 was the second biggest one in history (133.8 million metric tons of grains), a result 8.3% lower than the record one (146.0 million metric tons).

Due to the international crisis, there was decrease of volume and price of agricultural commodities exported, negatively affecting the result of agriculture industry. According to the Secretariat of Foreign Trade (SECEX/MDIC), the exported volume of the main agriculture industry products presented the following changes in relation to 2008: poultry pieces and giblets (-3.4%), frozen beef (-12.3%), bovine leather and rawhides (-15.2%), alcohol (-34.7%), crude soybean oil (-22.3%) and bagasse and other residue of crude soybean oil (-0.2%). On the other hand, there was increase of exports of sugar (24.8%), tobacco (4.9%), cellulose (16.9%), orange juice (0.7%) and ground soybean grains (16.6%).

Industrial Products from Agriculture  

The sector of industrial products from agriculture faced decrease (-4.0%) in 2009, with negative results in six of the eight subsectors surveyed. The decline of sugarcane derivatives (-5.9%) can be seen as a consequence of the reduced production of alcohol (-15.4%), due to the use of most harvest in sugar production. This output increased 4.0% with the rise of international prices, due to the decrease of Indian harvest (the second main producer in the world).

As a result, sugar exports rose 24.8%¹, whereas external Sales of alcohol decreased (-34.7%). Other negative influences came from soybean derivatives (-9.1%), corn (-2.4%) and wheat (-4.2%), besides tobacco (-2.4%) and oranges (-9.5%). Positive contributions came from rice (6.4%), a product directed to the internal market and cellulose (0.2%), affected by exports.

Industrial Products used in Agriculture

The sector of industrial products used by agriculture faced decrease (-12.7%), due to the reduced production of agricultural machinery and equipment (-28.7%) and fertilizers and manure (-2.1%). This subsector was affected by the decrease of agricultural income, as a result of the lower volume exported and of the price of agricultural commodities, and of the higher costs in the planting period of the 2009 harvest.

As a result, the investment in machinery and equipment, and the purchase of manure and fertilizers, fundamental items for the increase of agricultural productivity, were lower. Besides the internal market, the sector also contributed to the decrease of the production of agricultural equipment. According to statistics of the National Association of Motor Vehicle Producers (ANFAVEA), there were decreases both in the amount of harvesting machines (-65.5%) and tractors exported (-46.3%).

Industrial Products from Livestock

The sector of industrial products from livestock faced decrease (-1.2%). Poultry derivatives fell by -0.7% due to the reduction of exports, mainly to Asian and the European Union. Cattle and hogs and pigs derivatives presented reduced production (-2.9%), due to the lower amount exported especially to Russia and the European Union. The production of milk, directed to the internal market, grew 2.7%, whereas that of leather and rawhides decreased (-11.3%), with fall of exports.

Industrial Products used in Livestock

The sector of industrial products used by livestock faced decrease (-0.7%). The group animal food, the most significant one, decreased by -4.5%, whereas veterinary products grew by 19.1%.

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¹ According to data from SECEX/MDIC