Better Wages Help Food Industry in Brazil Grow 21% This Year

Food industry in Brazil In Brazil, revenues by the food industry grew 1.86% in June, compared with the previous month. In a comparison with June 2007, the growth rate was 17.59%. In the accumulated result for the year, the increase was 20.87%, and in the last 12-month period, of 16.24%. The figures were presented by the Brazilian Food Processors Association (Abia).

According to Abia's balance sheet, the volume of foodstuffs produced in June was 1.68% greater than in May. When compared with June last year, the volume was 6.18% higher. In the accumulated result for the year, production was 7.97% greater than in the same period of last year, and considering the last 12-month period, there was growth of 4.73%.

The president of Abia, Edmundo Klotz, ascribed the expansion of consumption and revenues posted by the sector to the rise in job positions, in the population's income, and to better remuneration of workers. Klotz stated that the first half was very good for the food industry:

"Despite the high costs and inflation, there certainly was an expansion of wages and income, and at quite a significant rate."

He highlighted the meat, frozen food, and dehydrated food sectors, and asserted that the population began to eat better, and that nobler products were the most consumed.

According to the projections of Abia, revenues by the sector this year should reach 268 billion reais (US$ 165.8 million), 16.2% more than in 2007, when they totaled to 230.6 billion reais (US$ 142.6 billion). In foodstuffs alone, the organization estimates revenues at 228.1 billion reais (US$ 141.1 billion). The remaining 39.9 billion reais (US$ 24.6 billion) should be generated by beverage sales.

Agricultural Income

The Brazilian agricultural income, which takes into account the gross value of the 20 main agricultural products, should total 156.7 billion reais (US$ 96.9 billion) in 2008, approximately 17% more than last year.

The figures were calculated by the Strategic Management Advisory at the Brazilian Ministry of Agriculture and disclosed last week, and since almost all crops have already been harvested, the estimate should not be drastically altered.

The highest growth rate should be that of the Midwest Region, where agricultural income should go from 28 billion reais (US$ 17.3 billion) to 39.4 billion reais (US$ 24.3 billion), growth of 40.6%. To arrive at the result, the technicians multiply the crop size by the price received by farmers in the country's leading producer regions.

The actual value, inflation discounted, is obtained from the General Price Index – Internal Availability (IGP-DI), of the Getúlio Vargas Foundation (FGV). Besides the Midwest, which was the highlight, the South, Southeast and Northeast regions recorded growth rates of 8.2%, 4.7% and 4.8%, respectively.

The North region was the only one in which income saw a reduction, of 12.9%, even though grain production increased by 13.1%. That was so because, for income to rise, it is crucial that product prices do not fall.

ABr

Tags:

  • Show Comments (1)

  • ch.c.

    “That was so because, for income to rise, it is crucial that product prices do not fall.”
    Except that in the North, Midwest or South, prices DID NOT FALL, when compared to the similar period of last year !!!!

    Therefore Nooooo answer given as to why the North region had an income reduction of 12,9 %.

    But the answer is far more simple and obvious : LESS SUBSIDIZES IN THE NORTH AND HIGHER SUBSIDIZES WHERE THEY NEED THEM THE LEAST ! With less subsidizes you produce less and you produce more with more subsidizes.
    This is called the Incentives or the Disincentives.
    And fact is Brazil strives in injustice. You provide over 75 % of your subsidizes to commercial farmers, and less than 25 % to your 5 millions of family farmers.
    Reality is that your family farmers get an average subsidized loan totalling Brl 2700.- per farmer. And it is only the interests of this amount that is subsidized. Lets say at a 10 to 20 % more advantagous rate.
    How can a farm of 30-50 hectares be developed with a subsidized loan rate of Brl 2700.- ???

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Talent Is Good, But You Need a Team to Win the Cup, Says Brazil’s Coach

What needs to win World Cup title? Brazil coach Carlos Alberto Parreira is sure, ...

The Scent of God

By Brazzil Magazine "I write to change the world… I really wanted to punch ...

Brazil Intent on Ending Indians’ Malnutrition

Brazil’s National Health Foundation (Funasa) and the Oswaldo Cruz Institute Foundation (Fiocruz) signed a ...

Now We Know Why the PT Came to Power. To Preserve Bourgeois Rule.

The deep crisis of the Workers Party (PT) government of Luis Inácio Lula da ...

Only End of Land Disputes Will Solve Indian Problems in Brazil

A new pediatric unit, with 20 beds, was inaugurated earlier this month at the ...

Brazil Praises Israel for Gaza Evacuation and Makes Itself Available to Peace Process

Brazil’s Ministry of Foreign Relations released a note affirming that the Brazilian government is ...

Five Years Without Ayrton

It doesn’t seem like five years since that fatal crash at the Tamburello curve ...

No Gas, Brazil Tells Argentina. But You’ll Get a Little Electricity

Brazilian President, Luiz Inácio Lula da Silva, said this Saturday, February 23, in Buenos ...

Brazil’s Package to Boost Economy Includes 1 Million New Homes

Luiz Inácio Lula da Silva, the president of Brazil, said that his administration will ...

Brazil’s Shoemaker Giant Grendene Sells to 85 Countries

Grendene, the greatest shoe manufacturer in Brazil, plans on exporting to another two Arab ...