The agricultural crisis grows in Brazil amid floods, controversy over imported rice and competition from Argentina

Published 2024년 6월 1일

Tridge summary

Brazil's agribusiness sector, which grew by 15.1% in 2023 and contributed 23.8% to Brazil's Gross Domestic Product, has experienced a significant slowdown in the first half of 2024. The sector is facing challenges such as decreased profit margins for soybeans and corn, productivity issues, and a crisis in the dairy sector. The sector's challenges include high production costs and a decrease in profits, especially due to a stoppage in Rio Grande do Sul's agricultural economy caused by floods. The government's response has included announcing a tender for the purchase of 300 thousand tons of rice from foreign producers, which has raised concerns about the potential introduction of Chinese rice into the Brazilian market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

So far, 2024 has been a year of challenges, some of them very great, for Brazil's agribusiness sector. The cream of the economy of the Latin American giant grew by 15.1% in 2023 according to data from the Brazilian Institute of Geography and Statistics (IBGE), contributing 23.8% to the Brazilian Gross Domestic Product, which last year grew by 2.9%. However, after years of prosperity and last year's record harvest of more than 315 million tons of agricultural products according to IBGE data, the sector has experienced an unprecedented slowdown in this first half, being forced to face one challenge after another. . The gross profit margin of soybeans, along with that of millet, was the worst in the last 25 years. According to calculations by the Center for Advanced Studies in Applied Economics (CEPEA) based on data from the Sorriso region, in the state of Mato Grosso, the average productivity of 50 bags per hectare was insufficient to cover the costs of 23/24 soybeans. “Profit ...

Source: Infobae