Brazil’s Agricultural Growth Forecasted at 14.5% for 2023

On December 6, 2023, the National Agriculture and Livestock Confederation (CNA) announced that Brazil’s farming sector is projected to grow by 14.5% in 2023.

From January to October, the sector’s total production value hit R$ 1.24 trillion ($250.51 billion). This growth means agriculture could account for 47.5% of Brazil’s GDP this year.

Farming exports from Brazil are also on the rise. They are expected to reach $164 billion by year-end, marking a 3% increase from 2022.

China remains the top buyer of these exports. Its purchases from Brazil increased by 13.3%, focusing mainly on soybeans and corn.

Soybeans are Brazil’s leading agricultural export, earning $48 billion in 2023. This represents a 10.7% increase from the previous year.

Corn and sugarcane also saw significant gains. Corn exports grew by 21.4% and sugarcane by 31.7%.

However, not all sectors fared well. Beef exports fell by 25.2%, translating to a $2.6 billion loss.

This downturn is largely due to decreased global demand, particularly from China. China’s beef imports from Brazil dropped by $2.3 billion.

Looking ahead to 2024, Brazilian farmers face challenges. The CNA predicts a drop in profit margins due to high production costs and lower commodity prices.

Soybean profits might decline by 14%. Similarly, beans and second-season corn could see profit decreases of 15% and 20%, respectively.

Wheat profits might even plummet by 219%. In contrast, rice is the only crop with a positive outlook.

Profits from rice are expected to surge by 169%.

Yet, this projection is subject to change, especially due to weather conditions in Rio Grande do Sul and Santa Catarina, key rice-growing regions.

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