In an interview with CNN this Monday (12), Bruno Lucchi, technical director of the Confederation of Agriculture and Livestock of Brazil (CNA), said that the slowdown in the global economy is one of the factors that explain the projection of lower profits for the sector next year .
“Brazilian products are listed on international stock exchanges, and there is an expectation of lower growth in the world economy, according to data from the International Monetary Fund (IMF). This already reduces international commodity prices,” he said.
Lucchi also mentions the effects of the war in Ukraine, which made fertilizers and other agribusiness inputs more expensive, as well as the impact of the pandemic on production chains.
Looking at the domestic scenario, agribusiness may still be affected by economic growth in 2023, projected by Boletim Focus at around 0.8%. This, according to the specialist, affects the products that are most consumed in the country and that are not linked to international markets, such as fruits and dairy products.
“This data indicates a near stagnation or a very small growth, which implies a smaller consumption aggregation. We have the basic products that maintain normal consumption, but production expectations for next year are very high. The crop is estimated to grow by 15%, and for the first time we should reach 300 million tons”, he comments.
“It increases supply, but there is stagnation on the consumption side.”
Source: CNN Brasil
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