Gross Value of the Agricultural Production (GVaP) rises to its second highest record in 30 years during 2019

According to the Ministry of Agriculture, GVaP should reach a revenue of R$ 603,4 billion. The growth rate is attributed to good results from the livestock sector.

The The Ministry of Agriculture, Livestock, and Supply (Mapa) has raised the Gross Value of the Agricultural Production (GVaP) forecast for this year from R$ 596 billion to R$ 603 billion. Hence, the value should be only below the results obtained in 2017 when GVaP reached a revenue of R$ 508 billion.

The main plantation types, such as soybeans, corn and sugar cane, accounted for R$ 399 billion. The increase could be attributed to the livestock sector, which reached R$ 204,4 billion.

“The livestock sector has presented a positive variation of 4.5% and the plantations trend towards reduction”, José Garcia Gasques, general coordinator of Policy Evaluation and Data at Mapa, says. “Notice that the mentioned trends should remain stable by the end of 2019”.

The GVaP growth can be particularly noticed in the poultry (13.4%) and pork (9.3%) sectors, while beef is 1.3% higher. “Those improvements are especially due to the international market is favourable to the meat industry over the last 12 months”, Gasques says.

For example, the Brazilian beef exports have recorded 982 thousand tons through July, which represents a growth of 20.1% compared to the same period last year. The pork meat have reached a total of 346.6 thousand tons surpassing the exported volume of the first semester in 2018, which was 24.5%.

Such great performance is driven by a rise in sales to China due to the outbreak of swine fever. However, according to Brazilian Animal Protein Association (ABPA) it is a widespread rise.

“Most of the large importers have increased their purchases generating good results for the exports sector. The increased international demand for animal protein affects various sectors”, Fracisco Turra, president of ABPA, says.

“The results are positive and meet the growth forecasts of Brazilian exports made at the beginning of the year”, says Antônio Jorge Camardelli, president of Brazilian Beef Exporters Association (Abiec).

The GVaP represents an estimate of revenue generation in the rural area, in other words, ‘inside the fence’. The most recent crop estimate published by Brazilian Institute of Economy and Statistics (IBGE) has been used for agricultural products. The livestock sector doesn’t have its production estimates from IBGE, for that reason any data is obtained from class entities.

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