Why the agribusiness GDP jumped in the 1st quarter

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Soy, corn, beef and chicken boosted a 21.6% increase in agriculture, compared to the last 3 months of 2022. It is the biggest advance since 1996. The sector will continue to grow. Soybeans, corn, beef and chicken pushed higher. Indea-MT Agricultural activity jumped 21.6% in the 1st quarter of this year, compared to the last three months of 2022, boosting Brazil’s Gross Domestic Product (GDP) in the period, which advanced 1.9%, in same comparison. Agro’s high was the biggest since 1996. In relation to the 1st quarter of 2022, the sector’s growth was 18.8%. ➡️What boosted the agro GDP? Record soybean harvest, increased corn production and cattle and chicken slaughter, explains economist Gabriela Faria, from Tendências Consultoria. ➡️What to expect for the next few months? The coming quarters should also be positive, says Gabriela. There are good prospects for the second and third quarter harvests, such as sugarcane, coffee, and the 2nd corn crop. “However, no other quarter should be greater than this first one, since the soybean harvest has already ended, and it is the product with the greatest weight in the agricultural basket”, adds the analyst. Soybean weight “The forecast is that the soybean harvest will increase by 24.7% in 2022/23, compared to the 2021/22 harvest”, says Gabriela, citing data from the IBGE. Brazil should harvest 154.8 million tons of soy this season. What grew the most ➡️ the production of the first corn crop should register an increase of 8.1% this year – the first crop harvest takes place in the 1st quarter; ➡️the slaughter of oxen advanced 3% in the first quarter of this year, compared to the previous quarter; ➡️and the slaughter of chickens grew by 6.4% – Brazil sold more to other countries in the face of the advance of avian flu in the world. In the first quarter, the flu had not yet arrived in Brazil. The virus was registered for the 1st time in the country in May. Bird flu: How do humans catch it? How many people have already been infected? Solve doubts Analysis of the GDP, from the point of view of supply. g1 The IBGE points out that agriculture accounts for around 8% of the country’s entire economy. According to Rebeca Palis, coordinator of National Accounts at the IBGE, after a period of climate problems that negatively impacted the sector in the last year, forecasts for 2023 are positive. “The soybean harvest is concentrated in the first half of the year. When we compare the fourth quarter of a bad year with a good first quarter, we observe this expressive growth of Agriculture”, she points out. Other factors The director of Agribusiness at Grupo Suno, Octaciano Neto, says that the significant increase in agro is also explained by a combination of factors that have been built over the last 50 years, such as technology in seeds, seedlings, irrigation, fertilizers and herbicides. “In addition to economic factors: the high dollar, the Kandir law, the reduction of import tariffs and the opening of ports made investments in bulk and container terminals possible.”

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