In 2010, Brazilian agricultural industry increased 4.7%, reversing the decline (-4.8%) recorded in the previous year...

In 2010, Brazilian agricultural industry increased 4.7%, reversing the decline (-4.8%) recorded in the previous year. However, the result was below that obtained by general industry (10.5%). At the same time, it has been the highest result since the 5.0% reached in 2007. Crop production sectors (4.7%), more weighty in agricultural industry, presented a better performance than those linked to animal husbandry (1.8%). The group pesticides and herbicides increased 14.6% and the segment wood, 25.2%.

After having achieved positive results in the three first quarters of 2010 (5.2%, 6.6%, and 7.3%, respectively), agricultural industry decelerated at the end of the year, closing the last quarter with a decrease (-0.8%).

The crop production result was positively influenced by the good weather conditions of 2010, unlike what had happened in 2009, when there was a drought in the South region, main producer in the country. According to the Systematic Survey of Agricultural Production (LSPA), the 2010 grain harvest amounted approximately 149.5 million tons, 11.6% above that obtained in 2009 (134.0 million) and 2.4% larger than the record 2008 harvest (146.0 million).

As to the export sector, data from the Secretariat of Foreign Trade (Secex/MDIC) indicate that the exported volume of the main agricultural industry products presented positive variations in relation to 2009: poultry meat not cut in pieces (+6.4%), poultry pieces and giblets (+5.7%), frozen beef (+2.2%), cellulose (+1.7%), sugar (+15.3%), ground soybeans (+1.8%), bagasse and other residues of soybean oil extraction (+11.0%), crude soybean oil (+2.2%), cattle rawhide and leather (0.0%). On the other hand, exports of alcohol (-42.4%), tobacco (-23.2%) and frozen pork (-9.7%) recorded decrease.

Sector of derivatives of crop production increased3.6%

The sector of industrial products derived from crop production increased 3.6%, with positive results in six of the eight investigated sub-sectors: products derived from sugarcane increased 8.1% due to a greater production of crystallized sugar (+11.5%), influenced by exports, and of alcohol (+4.2%), as a result of the expansion of the fleet of bi-fuel vehicles. Other positive contributions: products derived from soybeans (+10.7%), wheat (+2.6%) and corn (+1.0%), influenced by the increased harvest, besides oranges (+10.0%) and cellulose (+2.0%). Negative pressure was exerted by rice (-4.7%), with reduced harvest due to excessive rain in Rio Grande do Sul, major producing state, and tobacco (-8.1%).

The sector of industrial products used in crop production increased 12.5%, influenced by the increased production of agricultural machinery and equipment (+32.7%) and fertilizers (+2.7%). A contribution was made by the recovery of agricultural income, resulting from the harvest and the increased price of some commodities, even if the stronger currency has prevented greater profitability. Consequently, there was increased investment in tractors and harvesters and in the use of fertilizers, essential items for the growth of crop productivity. The external sector also contributed to the increased production of agriculture equipment, with rises in the export of harvesters (+81.2%) and wheel tractors (+14.9%), according to statistics of the National Association of Automotive Vehicles (Anfavea).

Poultry-derived products recorded a 2.9% rise

Sector of industrial products derived from animal husbandry increased 0.9%. Poultry-derived products increased 2.9%, due to internal demand and increased exports. Products derived from cattle raising and pig farming decreased (-0.8%), due to the decreased pig exports. Milk production decreased (-1.2%) whereas that of leather and hide increased 5.2%.

The sector of industrial products used in animal husbandry increased 5.0%, influenced by the growth of group feed and vitamin supplements (8.2%), more weighty in the sector, as the group veterinary products recorded decrease (-8.5%).