Influenced by Economic Recovery, Dollar Increase, High Demand from China and Other Factors, Agribusiness Will Continue to Grow in 2021

Written by Roberta Souza

Published on 01/12/2020 at 16:09

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With Economy Recovery Expectations in the Country, Agriculture Should Continue to Grow in 2021

One of the most important sectors of the Brazilian economy, agriculture will continue to grow in 2021. Some factors that may support this growth include: recovery of the country’s economy, the post-pandemic world recovery, stable dollar, and Chinese demand for grains and animal proteins.

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According to experts, for the agriculture sector to achieve positive results, only two factors can hinder it: climate and dollar fluctuations. In addition to the pressure on environmental issues, following the election of Jon Biden in the United States.

Regarding the 2020/2021 grain harvest, Conab provided data indicating that this cycle is expected to increase by 4.2% and reach 268.7 million tons.

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Soybeans are expected to increase by 2.5% and reach 133.7 million tons. Corn will reach 105.2 million tons with a 2.6% increase.

Another positive factor is the sale of more than half of the soybean harvest, with the harvest only starting in January 2021. Another point is the sale of sugar next year, with an estimated increase of 30% to 40% and sugar in 2022 by 15%, opening up space for sugar and ethanol industries to start shifting back to ethanol, focusing on the expectation of increased fuel consumption.

Agriculture:

Agriculture – sometimes referred to as agribusiness – is a term used to refer to the socio-spatial context of agricultural production, including all the services, techniques, and equipment related to it, directly or indirectly. Thus, the sector involves a chain of activities that includes agricultural production itself (growing crops such as coffee, cotton, livestock, etc.), the demand for fertilizers and nutrients, the development of agricultural machinery, the industrialization of field products (such as oils, cigarettes, instant coffee, among others), and the development of technologies to streamline all these activities.

Influenced by Economic Recovery, Dollar Increase, High Demand from China and Other Factors, Agribusiness Will Continue to Grow in 2021

With Economy Recovery Expectations in the Country, Agriculture Should Continue to Grow in 2021

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