Surge in Brazil’s Soy and Biodiesel GDP Amidst Real Income Decline
In 2023, the soy and biodiesel industry in Brazil witnessed a robust 21% GDP growth, outpacing the prior year’s performance.
This upturn spanned the entire supply chain, notably in soy farming, as highlighted by research from Cepea at Esalq/USP and Abiove.
The analysis pinpointed a rise across various sectors: inputs grew by 6.24%, soy production by a remarkable 39.2%, agro-industry by 6.82%, and agro-services by 16.58%.
Despite these gains, real income fell by 5.34%, primarily due to price drops.
Yet, the sector contributed significantly to the economy, adding R$ 635.9 billion ($127.18 billion) to the GDP, which accounts for 23.2% of agribusiness and 5.9% of the national GDP.
Employment in this sector hit a new high, with 2.32 million workers, up 10.74% from 2022.
This growth underscores the sector’s key role in Brazil’s agribusiness and overall economy, contributing 10.07% and 2.35% to each, respectively.
Job creation was particularly strong in the biodiesel agro-industry, which saw an 18.45% increase in employment.
The inputs and agro-services segments also saw growth, reflecting the sector’s robust production and agro-industrial performance.
However, the farming and crushing/refining sectors saw a decline in employment.
Dynamics of International Trade in 2023
On the international trade front, exports from the chain totaled $67.6 billion in 2023, marking a 10.24% increase from the previous year.
This was mainly driven by higher shipment volumes, despite a decrease in export prices.
Soy, biodiesel, and soy meal exports rose with higher volumes, while soy oil, glycerol, and soy protein values fell.
Exports notably surged to China, North America, East Asia, and Southeast Asia, representing 72.39% of total exports.
New regulations drove strategic export shifts, bolstering trade with the EU and North America, while maintaining robust exports to China.
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