The first four months of the year witnessed a 0.4% rise in the economy of Brazil compared to what was experienced in the closing stages of 2017. In comparison to the start of last year, an increase of 1.2 % was witnessed. The agricultural sector has not done as well as the whole economy. These statistics are drawn from a report made by Flavio Maluf, Eucatex Group’s president.
The truck drivers’ demonstrations in mid-May had a huge impact in the agricultural sector. The report indicates that the sector experienced a 2.6% drop in its GDP. There was a considerable decline in the crops harvested. Read more about Flavio Maluf at Wikipedia.
Flavio Maluf’s report indicated that feed production took a hit as sugarcane and maize products were not circulated as expected. The lack of feeds squarely affected the livestock industry. Meat production experienced an all-time low. Traders also had a rough time during this period.
The coffee chain was not left out. Raw materials did not get to the processing plants in good time. The decline in production was inevitable and exporters had to count their losses according to the report. It was not helped by the fact that harvesting usually reaches its peak during this period.
Rice and leaf tobacco production also recorded notable declines of 6% and 7% respectively. The decline in the agricultural sector was not entirely unexpected. 2017 had seen an unprecedented improvement in productions. 240 million tons of harvest in the first four months had never been witnessed before. Market players could not guarantee that this would be replicated the following year.
The situation, however, was not grim for all the crops. Flavio Maluf reported that soybeans recorded an all-time high in the South American country. 119 million tons of soybeans were harvested in the first quarter of the year. The impact of this harvest was largely overshadowed by the substantial losses on the other agricultural products.
Road freight regulations and reduced diesel oil prices led to the calamitous strike that kicked off on May 21. Agricultural producers were the greatest losers of the demonstrations that would later enjoy public backing.
The 58-year-old has led the Eucatex Group since 1997 and continues to guide them towards astronomical success in the business world.