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Agroindustry experienced a 2% growth in the previous year, marking its most significant increase since 2010, as per FGVAgro research.
The Food and Beverage Products and Non-Food Products segments drove the growth of the Agroindustry during the period, expanding by 1.5% and 2.6%, respectively.
FGVAgro analysts pointed out that the strong demand in the local market for food and beverages, particularly in the first half of 2024, was a key factor influencing sector performance.
Despite ending the year with a 0.5% decrease, there was a steady improvement, particularly in Agricultural Intakes, Textile, and Forest Products, which saw a 4.1% growth and had a positive impact on the Non-Alimentary Products category, as reported by the “Money Times.”
Agroindustry saw a 0.5% decline in December 2024 compared to the same month in 2023, marking the second consecutive year-over-year decrease in performance for the sector.
FGVAgro cautioned about indicators pointing to a slowdown in the Brazilian economy, attributed to the ongoing high interest rates and the erosion of purchasing power caused by inflation.
Analysts highlighted that the Brazilian economy faces significant risk aversion due to uncertainties in the global economy, such as potential trade conflicts, which are expected to pose additional challenges for both the Brazilian and global economies, impacting the agroindustry sector.
Agroindustry experiences a decline in November following a significant growth.
The PIMAgro Agroindustrial Production Index, from FGV Agro, dropped by 3.1% in November compared to the previous month following a significant increase in October.
The agroindustry might finish 2024 with a performance slightly lower than anticipated, around 2%, according to FGV Agro. This raises uncertainty about the industry’s performance at the beginning of 2025.
The outlook for a bumper crop of grain brings some optimism, but uncertainties arise due to the strong dollar and economic slowdown.
In 2024, there was a significant increase of 2.2% in the sector, the highest recorded since 2010. The largest decline in November was in the food and beverage industry, which decreased by 5%, specifically with an 8.4% decrease in beverages (and 10.6% for non-alcoholic beverages).
There was a 4.3% decline in food production, particularly in the production of preserves, juices, sugar refining, rice, and wheat milling. The vegetable derivatives industries experienced a 9.4% decrease in production.
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