Maybe you don’t know it yet, but Brazil is one of the main agricultural producers in the world. In fact, our country has always been predominantly agricultural: we have been prominent in the production of coffee and sugar cane, for example, since colonization.
In the last 40 years, there has still been a steady increase in our production. The year 2020, in particular, predicts a good time for the buying and selling grain, being a great opportunity for investors in the sector.
With that in mind, we will see in this article the main reasons to invest in the grain market, in addition to clearing all your doubts about this segment. Interested? So, read on to check it out!
The growing agribusiness
Despite the inconsistencies in the climate, Brazil has exceeded expectations and has shown favorable growth in the agribusiness sector. According to the Focus bulletin, the Brazilian GDP (Gross Domestic Product) should have a very positive impact on its performance thanks to the sector. The forecast is that this indicator will advance between 2% and 2,5% this year.
This is due to the fact that the agribusiness sector, according to the Confederation of Agriculture and Livestock of Brazil, should achieve a growth of approximately 10% compared to 2019. In numbers, the Gross Value of Production can reach 700 billion reais.
The role of technology
This movement began to be observed at the end of last year, and the sector is one of the first to show a reheating after a few years of “lean cows” season. And one of the reasons that justify such a positive forecast is the increase in the use of technologies applied to the agricultural sector.
Undoubtedly, the use of technology in the field, such as tractors, harvesters and sprayers — in addition to the application of more efficient products against pests, combined with good practices in the treatment of crops and livestock — is only boosting our production. Therefore, the sale of new and used agricultural machinery has grown in the market.
The grain trade
Grain production is one of those with the most growth potential for the 2019/2020 harvest. In fact, the segment expects another record for the account: the expectation is 248 million tons, a growth of 2,5% compared to the previous one! One of those responsible for raising this result is soybeans, with an expected growth of 7,5%.
With the high expectation of grain production in 2020, you must already be thinking that this is a great opportunity for your farm, right? After all, with a high production, it is possible to meet the demand of the foreign market, which tends to increase due to problems in other countries, for example. Also, as the economy picks up, people are more willing to spend.
In addition, there is a strong tendency that our grain exports will also be positively impacted.
Buy and sell on the internet
As we said, technology is contributing a lot to the records in our agricultural production. Digital Transformation is already a reality in the sector, both to enhance results and to optimize the logistics and distribution of these products. It’s no surprise, then, that you can also buy and sell grain online.
Through a marketplace, today it is possible to find several product options and boost your sales. It is estimated that by 2021, more than 21.4 billion people will shop online. Surely, this is a great opportunity to increase your business, isn’t it?
So, if you liked this reading and were interested in the subject, get to know our platform! MF Rural helps you, producer and buyer, to find the ideal opportunities.
