Brazil Agribusiness Report Q2 2018
We believe that grains production growth will slow over the next five years, after record production of corn and soybeanin 2016/17 owing to base effects. Growth prospects for livestock look strong, despite the ongoing meat scandal. Livestock exportswill remain elevated as global demand steadily remains on an uptrend. Robusta production will recover fully in the 2018/19 seasonas coffee moves into the up-year of the biennial production cycle, boosting output. Cocoa yields will recover, as productioncompletes its shift from Bahia to the northern state of Pará. Lastly, we expect to see sugar cane being diverted towards ethanolrather than sugar, as the government introduces an ambitious biofuel support policy in 2018.
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