The Brazilian Agro-Industrial Production Index (PIMAgro), calculated by the Agribusiness Studies Center of the Getúlio Vargas Foundation (FGV Agro), fell for the second month in a row in August after a year of mostly positive variations. Compared to the same month of last year, the index has fallen 3.2 percent.
FGV Agro states that the gap between pre-pandemic performance and today is only getting wider. July 2021 agribusiness production was 4.7 percent lower than in February 2020, and this difference reached 5.1 percent in August.
“Due to the turmoil caused by the pandemic, agribusiness is facing an increase in costs, with the disorganization of the production chain and difficulty in accessing some raw materials. The inflationary process continues to reduce the real income of families, the labor market is still sluggish, and the loss of rhythm in the Brazilian economy, as well as in the world, has negatively impacted the sector,” states FGV Agro.
In August, the index was pulled down once again by the food and beverages segment, which contracted 7.2 percent in a 12-month comparison. Granted, the indicator is still up 3.8 percent on a year-to-date basis and should end the year higher than it did in 2020.
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