Flavio Maluf Of Eucatex Reports Agriculture GDP Decline
The Brazilian economy has expanded in the previous year, according to research by the Brazilian Institute of Geography and Statistics. However, it is not all good news. Flavio Maluf, an executive at Eucatex, says that agricultural is down comparatively, especially when comparing the beginning of 2018 to the beginning of 2017.
Flavio Maluf stated that the livestock GDP decreased by almost three percent from January to March 2018 when compared with last year’s results. Unfortunately, it’s not only livestock that is faltering. Many plants in Brazil’s Center-South region have halted production, but in previous years, they’ve been in full swing of harvesting by April or May.
In his Folha report, Flavio Maluf wrote that “at least 19% of the sugarcane harvest occurs in the period from April to June, and the share of maize is also significant, reaching 33% in the period. The lack of circulation of the product affected not only the producers and trading but also the production of feed, which has led to a disruption in the production of proteins.” Read more on Business and Economics about Flavio Maluf
Maluf pointed to a recent trucker’s strike as one reason for the disruption in the distribution of corn. The corn disruption also affected the meat industry, which uses the corn for food, and the coffee industry.
However, there is also good news, specially in the production of soy beans. According to Folha, the previous harvest was a record high at about 119 million tons. Of this harvest, about 60 percent of it was collected in the year’s first quarter.
Maluf mentions that the decrease in agricultural GDP wasn’t unexpected. This is in part due to the fact that 2017 was a record harvest year and isn’t a good basis for comparing subsequent years to. The harvest in 2017 was an astounding 240 million tons, which would be hard to compare to.