MB Agro’s managing partner, José Carlos Hausknecht, said in an interview to CNN this Tuesday (4) that Brazilian agribusiness should benefit from better weather conditions this year. A study by the Getulio Vargas Foundation (FGV) projected that agribusiness should grow 5% in 2022, boosting the Brazilian GDP.
Hausknecht attributes an increase in production to the improvement in the water scenario compared to last year, when Brazil had the worst water and energy crisis in the last 91 years. “Last year we had several weather problems, a very strong drought that significantly harmed crops, especially corn and sugar cane. We had problems with frosts that also greatly affected production,” said the consultant.
The managing partner of MB Agro also stated that the projections indicated by the FGV study are based on the expectation of a more favorable climate this year, in which we will have more rain to favor crops. According to the consultant, an improvement in the production of agricultural products directly results in greater growth in the economy and, consequently, in the national GDP.
“When you have better agricultural production, you end up generating more need for inputs, generating more services and more industrialization as well. So agribusiness does tend to improve GDP prospects,” he said.
Hausknecht also considered that agribusiness has been increasingly modernized, and that this directly reflects on the offer of more jobs. The managing partner of MB Agro assesses that the crops are being made with complex machines and that technological materials are being used more in agricultural processes.
According to the consultant, the high price of the dollar and the high exchange rate makes it “difficult for us to imagine a significant drop in prices” for agricultural products. However, with an increase in production and supply, Hausknecht says that the prices of some products may even decrease, but that it is expected that there will be no increase.
“In principle, we will not have price growth like last year, with a better offer, we should have products with even lower prices in some segments where we foresee a greater increase in production”, said the managing partner of MB Agro.
*Supervised by Elis Franco
Reference: CNN Brasil
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