A study by Cepea and Abiove forecasts a 5.33% decline in Brazil’s soybean and biodiesel sector GDP for 2024. This follows a 21% growth in 2023, fueled by a record harvest and favorable prices. However, reduced soybean yields are expected to significantly impact the production chain and agro-services, reported RioTimesOnline.
The GDP for soybeans is projected to decrease by 13.07%, while agro-services are anticipated to fall by 4.28%, primarily due to adverse weather conditions and production constraints.
Despite these setbacks, the agro-industrial sector is expected to grow by 2.95%, driven by increased biodiesel production and strong soybean meal exports. Biodiesel production is predicted to rise by 36.47%, and the soybean crushing and refining industry is anticipated to grow modestly by 0.59%.
The feed industry is set to benefit from increased animal feed production, with a projected growth of 2.6%. Analysts estimate that in 2024, the total GDP of the soybean and biodiesel sectors will reach R$422 billion ($74.7 billion), representing 18% of Brazil’s agribusiness GDP and 3.9% of the national economy. This sector plays a vital role in the economy due to its direct contributions and support for related industries and services.
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