Brazil: soybean and biodiesel represented 27% of the GDP of agribusiness in 2022

By Lais Carregosa

The soybeans and biodiesel production chain’s GDP (Gross Domestic Product) represented 27% of Brazilian agribusiness in 2022.

It moved R$673.7 billion (US$135.88 billion) – or 7% of the national GDP.

Published on Wednesday (10), the data is from a study made by Cepea (Center for Advanced Studies in Applied Economics) in partnership with Abiove (Brazilian Association of Vegetable Oil Industries).

Compared with 2021, the GDP of the production chain fell by 7.8%.

According to the study, the drop is due to a smaller harvest in late 2021 and early 2022 and to lower biodiesel production.

The mandatory percentage of biodiesel addition to diesel remained at 10% during 2022, as decided by the CNPE (National Council for Energy Policy).

The government wanted to reduce the price of diesel B – sold at service stations.

With the mandate at 10%, compared to 13% in April 2021, biodiesel production fell.

In 2022, according to the study, the chain generated 2.05 million jobs.

The majority is in agribusiness, where 1.35 million jobs were created.

Considering the whole agribusiness, the soybean and biodiesel chain accounts for 10.8% of the jobs created.

According to the study, the average job remuneration was R$2,912 monthly.

The highest average value in the production chain is in soybean production, at R$3,417 per month.

The industry’s highest values are for crushing and refining, R$2,818, and biodiesel, R$3,192.

Cepea considers the soybean and biodiesel production chain the segments of farming, inputs, processing, and services, including trade, transportation, and product movement.

EXPORTS

In 2022, soybean exports reached a new record, valued at US$ 61.3 billion, representing 38% of the foreign agribusiness trade.

Since 2013, China has absorbed more than half of the exported value. Last year, it received 52.6% of Brazil’s soybean exports.

However, the country has been reducing its share in acquiring Brazilian soybeans and buying from Southeast Asia, Africa, and the Middle East.

Here are the largest importers of Brazilian soybeans:

• China: 52.61%
• European Union: 14.51%
• Southeast Asia: 10.09%
• Middle East: 7.49%
• East Asia: 3.58%
• Africa: 1.76%
• North America: 0.75%
• Others: 9.21%

With information from Poder360