Brazil’s Agribusiness GDP Drops in 2023

In 2023, Brazil’s agribusiness sector experienced a 2.99% decrease in its Gross Domestic Product (GDP) compared to the previous year.

This downturn reduced agribusiness’s contribution to the national GDP from 25.2% in 2022 to 23.8%.

The decline was driven by price drops in all parts of the production chain. The analysis covers the entire chain: inputs, farming, agroindustry, and agroservices.

It provides a broader view than IBGE, which focuses solely on farm-gate agricultural production.

The input segment, encompassing fertilizers and agricultural machinery, bore the brunt, plummeting by 23.57%.

This led to smaller contractions in the primary sector by 1% and in the agroindustry and agroservices sectors by 2.05% and 1.31%, respectively.

Despite these challenges, record harvests and higher livestock production partially offset the negative trend, stimulating demand for agroservices.

Breaking it down, the agricultural GDP fell by 3.26%, with only the primary sector seeing growth at 5.11%, thanks to record outputs and cheaper inputs.

Livestock GDP down 2.3%, primary production by 10.61%, despite lower costs, and higher output, due to declining commodity prices.

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