August 9, 2012

Brazil's H1 agro-industrial production down 3.9%

In the first half of this year, Brazil's agro-industrial sector production fell 3.9% compared with the same period of last year.

The decline is mainly attributable to a decline in international demand for Brazilian beef, sugar and ethanol, the IGBE said.

Most of the damage came in the second quarter, when agro-industrial output plunged 9.9% after posting growth of 4.2% in the January-March period.

Primary agricultural goods were down 5.9%, while forest products were up by the same percentage and the agri-chemical sector, including pesticides and fertiliser, expanded 27.4%.

Production of refined sugar and sugar-based ethanol dropped 32.4% and tobacco output fell by 16.9%.

Despite the downturn, the IBGE maintained its projection that Brazil's harvest will grow 0.4% this year to 160.7 million tonnes. And while agro-industrial exports declined in volume in the first half of 2012, they rose 3.7% in value to US$44.8 billion.

Agribusiness is a key element in Latin America's largest economy.