Most of Brazil’s agricultural sector has been thriving, despite the negative effects of the Covid-19 pandemic on the country’s economy as a whole, the USDA said

Most of Brazil’s agricultural sector has been thriving, despite the negative effects of the Covid-19 pandemic on the country’s economy as a whole, said the United States Department of Agriculture (USDA) attaché in Brasilia. The agency noted that Brazil’s Gross Domestic Product (GDP) is expected to shrink by at least 7% this year, while agriculture may grow up to 3%.

“The agricultural sector is taking advantage of the opportunities in the international market that arose because of the covid-19 pandemic, supplying a variety of products to foreign markets at a time when other countries are facing production problems and some are restricting exports to ensure domestic supply ”Said the USDA.

According to the attaché, the rapid appreciation of the dollar against the real made agricultural exports from Brazil attractive in the international market. Despite having recently fallen, the US currency still accumulates a gain of 31% in 2020. “The weak real also discouraged dollar-denominated imports and fueled domestic demand for agricultural products produced in the country.”

The attaché pointed out that Brazilian agriculture, working together with government decision makers, overcame initial logistical obstacles and raised exports of some commodities to record levels amid the pandemic. In addition, “it kept the offer on the domestic market, at a time when Brazilians increased their purchases of food in supermarkets”.

The USDA said that while the country has not experienced food shortages or supply chain disruptions, some segments of the population are suffering from greater food insecurity because of price increases in recent months. In general, the attaché believes that the agricultural sector in Brazil is well positioned to face the spread of covid-19 and the post-pandemic period.

Source: www.canalrural.com.br