Agribusiness profits rise despite GDP drop

agribusiness brazil profits gdp
Photo: Celio Messias Silva/Shutterstock

While the Brazilian economy is set for a 7-percent retraction for 2020, the agribusiness sector is still growing. The Agriculture Ministry reportedly projects 3-percent growth for this year. According to the ministry, as a global food supplier, Brazil has taken advantage of new markets amid the pandemic — entering 21 new markets across 11 countries. 

Last week, the Brazilian National Confederation of Agriculture and Livestock (one of the main agribusiness lobbies) already indicated that, between January and April, the sector’s profits had increased by 5.9 percent in comparison to the same period last year — a rise of USD 1.75 billion in absolute terms.

Experts indicated the decision to keep ports and roads open, as well as to not implement a full lockdown, as the main reasons that contributed to that. While countries like neighboring Argentina, which went into full lockdown on March 21, have nearly shut down agricultural production, Brazil kept up with the international demand.

Yesterday, however, The Brazilian Report’s José Roberto Castro explained that meat plants have contributed to the spread of the novel coronavirus in the Brazilian countryside.

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