The output value of Brazil’s agriculture and fishing sector will decline by nearly 9% this year compared with 2004, according to a report released this week.
The projection was based on data collected between January and May by the CNA agribusiness federation and the University of São Paulo.
“Both agriculture and fishing show a reduction in GDP in 2005,” CNA chief economist Getúlio Pernambuco told a press conference, adding that the decline will have ripple effects across the Brazilian economy.
Farmers have seen a drop in harvests due to unfavourable weather and a massive outbreak of Asiatic rust affecting soy, Brazil’s main agricultural export.
Pernambuco also blamed falling farm revenue on a decline in global prices caused by surpluses of certain agricultural commodities.
Mercopress – www.mercopress.com