Brazil's Ministry of Agriculture, Livestock and Supply made an upward revision of its estimate for the Brazilian agricultural income this year. According to figures disclosed last Friday, October 10, by the Strategic Management Advisory at the ministry, income should total 164 billion reais (US$ 75.1 billion), growth of 17% over the total in 2007.
The figure concerns the gross production value of 20 crops and is calculated by multiplying the production volume by the price received by farmers.
According to the Ministry, bean, onion, wheat, peanut, soy, maize and coffee continue to drive up income in 2008, contributing with 59% of gross production value. According to the strategic planning coordinator at the ministry, José Garcia Gasques, eventual effects of the international financial crisis were not taken into account in the survey, as it considers prices practiced in July, exception made for coffee, for which the pricing in September is considered.
Other items for which income also rose, although at lower rates, were rice (17.6%), banana (4.7%), potato (9,9%), cocoa (12.7%), tobacco (2.1%), orange (6.5%), cassava (2.9%) and tomato (16.5%).
On the other hand, income saw a reduction for some products, such as cotton, sugarcane and grape. Gasques underscored that there was a reduction in income from cane despite a record-high production.
In terms of regions, the one that presents the highest income growth estimate is the Midwest, which includes the states of Mato Grosso, Mato Grosso do Sul and Goiás. The forecast is for growth of 50%. In the remaining regions of Brazil, a more modest expansion is expected, and there should be a reduction in the Northeast.
Anba