Gross value of sugarcane production rises 2,2% in june

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The most recent data on Brazil’s agricultural GVP for sugarcane in 2020, with values calculated for the month of June this year, point to a value of BRL 63.17 billion, up 1.88% from BRL 62.01 billion in 2019. This level of gain in the annual comparison of June is above that observed in the immediately previous month, when the projections indicated an increase in the cane GVP of 1.43% over 2019.

     Between the months of May and June, the cane GVP grew by 2.04%, increasing BRL 1.26 billion, while the total GVP of crops grew 2.17%, or BRL 10.17 billion, and the total GVP of agribusiness rose 1.82% in the margin, or BRL 12.82 billion. According to the Ministry of Agriculture (MAPA), the value is the highest since the beginning of the historical series of 1989, with deflated prices reaching BRL 716.63 billion, mainly supported by soybeans, corn, coffee, orange, and rice.

     Also according to MAPA, besides the record grain crop, favorable international prices in animal agriculture contribute to the growth in the general GVP of agribusiness, which helps slightly reduce the percentile share of cane in agribusiness. Even with advances in their GVP, grain crops and the meat industry boosted the general GVP of agribusiness even further.

     SAFRAS & Mercado was already warning of the projected growth in the general GVP of cane due to the rise in the prices of some of its by-products, such as anhydrous and hydrated ethanol and crystal sugar with up to Icumsa 150. New York sugar, even retreating in the international market, ended up being offset by the increase in export premiums observed until then, which helped the price appreciation of the domestic equivalent of Brazilian sugar aimed at the international market.