The news about forecasts are encouraging for the agricultural sector this year 2020, and the expectation of reaching some records will be driven mainly by corn and soybean productions.
The Confederation of Agriculture and Livestock of Brazil (CNA) is projecting growth of up to 9,9% this year. In other words, the GVP (Gross Production Value), which measures production on the properties, may exceed the R$638,8 billion moved last year and should reach R$702,2 billion in 2020.
In the agricultural sector, the estimated growth is up to 10,7%, which will represent a growth value of R$ 42,2 billion.
Main influences for the sector to break records in 2020
According to meteorology, the climate will be one of the factors that will help Brazilian agriculture to reach these expressive numbers.
Studies indicate that for this year the country will not suffer from the influence of abnormal natural phenomena such as El Niño and La Niña, which will favor cultivation and increase production and reduce production losses.
Read here on our blog about the difference between climate and weather and what are their influences on agribusiness routines.
Soybean will have an important increase of about 2% in the area planned to be cultivated, which will culminate in an increase of up to 5% in the volume that will be produced.
Soy should leverage Brazilian agriculture in 2020
For corn, the expectation is that the volume of production may exceed 26 million tons.
Did you know that Brazil has already surpassed the United States in corn exports? Read it here in our MF Magazine.
Other crops that can also increase
Other crops that may have a growth, although less exponential than those already mentioned here in the text, are: coffee and sugar.
Conilon coffee should have a growth of 2% in relation to the volume that was harvested in 2019. As for the Arabica variety, if the expected weather conditions are confirmed, its production may increase.
For sugar, a gradual increase in price is envisaged. Although it is in deficit in the world balance, the increase in the production of the sweetener should be 1% while there may be a decrease of 2% for the production of ethanol.
There is also an expectation of growth for the hortifruti sector, mainly due to investment in new technologies for management, cultivation and harvesting.
May stagnate or decline
Due to the reduction in prices around the world, cotton production should be lower than in the past harvest.
Beans may also undergo a reduction in the planted area, which may be motivated by competition with soybeans. This decrease can reach up to 2%. On the other hand, bean varieties such as mungo, azuki and fradinho may have an increase in the share of the produced area. The same can happen with chickpeas.
Another crop that may experience a reduction in area is rice, which has been facing a crisis in the sector.
Also check out what are the expectations for the price of live cattle in 2020.
