Inputs support agribusiness
Gazeta Mercantil - 02/12/2008
The agroindustrial production of Brazil in 2007 grew 5%, strongly pushed by the industry of crop and livestock inputs, mainly the agricultural inputs. The sector of agricultural machines, for example, grew 49% in 2007, the greatest expansion among all segments. According to a survey from the Brazilian Institute of Geography and Statistics (IBGE), the 2007 index is the second best of this sector since the series was developed, in 1991. "The first one was 2004's, when the agro industry grew 5.3%", compares Fernando Abritta, economist from the institute. In general, the sector of industrial products used by agriculture grew 15.1%, whereas those used in cattle grew 5.8%. Besides the agricultural machines, the increase in the production of fertilizers (4.8%) helped to strengthen the index, together with the group formed by insecticides, herbicides and other pesticides that presented a strong increase of 22.6%. Since it refers only to the volumes produced - exclusive of the sales value - the IBGE index differs from the methodology of the trade associations. Regarding feed, for instance, the institute came to an expansion of 7.2% in 2007, whereas the National Union of Animal Feed Industry (Sindirações) found an expansion of 11%. Ariovaldo Zanni, Executive Officer of the Union, mentions that, on the average, poultry grew 10% and cattle farming, 21%, which pushed up the feed index. "Notwithstanding in absolute terms the confinement cattle farming being small, this segment is growing in feed consumption. In beef cattle farming the increase was 35% and in dairy, 16% ", he says. For 2008, the perspective of the feed sector is to grow between 5% and 10%.