The CEO of Agrifatto, Lygia Pimentel, in an interview with CNN, declared that the fall of agribusiness in the GDP (Gross Domestic Product) between July and September was due to a price adjustment. “We had exuberant highs in recent months, so it was expected a drop in prices”, he says.
The Gross Domestic Product of Brazil registered a drop of 0.1%, informed the IBGE (Brazilian Institute of Geography and Statistics), last Thursday (2).
In comparison with the third quarter of 2020, GDP increased by 4.0%. The results came in worse than expectations in a Reuters poll of stagnation on a quarterly comparison and a 4.2% increase year-on-year.
According to IBGE, GDP is now at the level of the end of 2019 and beginning of 2020, the pre-pandemic period, and still 3.4% below the highest point of activity in the historical series, reached in the first quarter of 2014.
On the production side, agriculture was the negative highlight in the economy in the third quarter, with a drop of 8.0% over the previous three months, as a result of the end of the soybean harvest, which also ended up impacting exports.
“One of the reasons for the fall in the sector [de agropecuária] it was the mad cow disease, in which we were unable to fully explain to China (Brazil’s largest customer in the sector), which resulted in a reduction in exports and, consequently, in a drop in the price of live cattle”, comments the specialist.
According to Ipea (Institute for Applied Economic Research), the price of live cattle rose more than 40% between January and September this year, compared to the same period in 2020. The sector accounts for more than 70% of the national GDP .
On October 19, according to the specialized consultancy Safras & Mercado, around 100,000 tons of dammed meat were waiting for a position from China on the release veto. However, so far, the Asian country has only allowed the importation of certified products.
“Although we have no news about the total resumption of exports to China, the minister [da Agricultura], Tereza Cristina, tried to trade our meat with other countries”, says Lygia. “What can help the sector”.
The Minister declared, on November 23, during a press conference, that there will be a new export quota for Russia, and that Brazil, as one of the largest exporters in the world, will have a large share in this distribution.
Reference: CNN Brasil
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