Brazil: rural production had better prices and lower costs in 2022

The Inflation Index of Prices Received by Rural Producers (IIPR) increased by 10.36% in 2022.

The Federation of Agriculture of the State of Rio Grande do Sul (Farsul) calculates the indicator. It measures the appreciation of agricultural production in Rio Grande do Sul.

In addition, the research carried out by Farsul shows that the Production Cost Inflation Index (IICP) recorded deflation of 9.55% this year.

That is, at the same time that rural products have improved in prices, the cost of producing them has fallen.

Although the indicators are regional, their results serve as a good reference for agriculture across the country, as explained by Antônio Luz, chief economist at Farsul.

“The indexes are made in Rio Grande do Sul, but considering that the use of technology is common in Brazil and prices vary very similarly in the Brazilian territory, so using the State as a sample gives us an excellent result for the country”, he commented.

Farsul related the reduction of costs to rural producers to the strong offer of fertilizers.

The increase in item availability is “a reflection of the fear that the conflict between Russia and Ukraine could lead to a shortage of the product in the Brazilian market, which is essentially an importer of the raw material”, informs the federation, in a note.

“Another factor that also contributed to the deflation of production costs was the drop in the average exchange rate. As most of the inputs used in the field are imported from outside the country, the exchange rate has a strong influence on the cost of this purchase,” explained the note.

With information from Revista Oeste

More: Brazil news in English, every day from The Rio Times.