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The Brazilian Agriculture Sector Will Be A Key Player In Economic Growth In The First Quarter Of 2024. With Significant Harvest Results, Advances In Exports, And High Productivity, The Sector Is Expected To Boost GDP
The agriculture sector is expected to be one of the engines of growth for the Gross Domestic Product (GDP) in Brazil in the first quarter of 2025.
With an estimated harvest of 330 million tons of grains, the sector promises significant results and a positive impact on the economy.
Strong Harvest And Attractive Prices
The forecast for the 2024/25 harvest is encouraging. Production is expected to reach a high volume, particularly for grains such as corn, soybeans, and wheat.
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Raising tilapia, the most farmed fish in Brazil, with solar-powered tanks is a trend gaining strength in the field because the panels ensure water oxygenation in places without electricity and reduce costs, although profitability depends on management, feed, and market.
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Now Brazil has moved up a level: flying robots are starting to be tested to harvest oranges on farms, selecting ripe fruits with cameras and sensors, sucking each fruit without dropping it, and promising to help producers in the face of labor shortages in orchards.
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Stamping on pork may seem strange, but it reveals an important detail about food safety that many people overlook at the butcher shop.
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China recognizes Brazil as free of foot-and-mouth disease without vaccination and unlocks a new phase for Brazilian meat in the Asian market.
Products in global scarcity, such as coffee, orange, cocoa, and some meats, are also showing good prices in the international market.
Additionally, the costs to implement the harvest have been reasonable. This opens up space for profit margins ranging from normal to very good. The scenario favors well-structured producers and reinforces Brazilian competitiveness.
More Controlled Food Inflation
With this good performance, a relief in food inflation is expected, which should hover around 6%.
While still a considerable figure, it is well below the levels seen in years of crop failure, such as the previous year.
The 2024 cycle brought hard lessons. Drought and monetary tightening affected highly leveraged producers. The risks of operating in countries with high interest rates and economic instability have become clear.
Today, this warning is accepted by all market participants.
The federal government’s bet is that, with the increase in agricultural production, food prices will decrease, resulting in greater popular approval.
Opportunities In Foreign Trade
The trade war between major economies may open new opportunities for Brazil. Barriers to American products in other markets may favor the export of Brazilian food.
The country has already expanded its presence in traditional markets, such as sugar, cotton, and meats.
Furthermore, it has gained traction in new sectors and markets, both abroad and in domestic consumption, with products like fruits, seafood, peanuts, honey, and wines.
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