RS: Soy is responsible for 43% of the state’s R$ 116 billion VBP

Soy is responsible for 43% of the gross value of agricultural production (GPV) in Rio Grande do Sul (RS), about R$ 116 billion, according to data from the Ministry of Agriculture and Livestock (Mapa). The state has one of the most diversified agricultural sectors in Brazil, with 35 productive chains; points out Paulo Lipp, an agronomist at the Secretary of Agriculture, Livestock, Sustainable Production and Irrigation (Seapi) of Rio Grande do Sul.

“Starting with grains, soy is the flagship. But we in Rio Grande do Sul produce two thirds of the rice consumed in Brazil. We have corn, which is also essential for the poultry, pork and beef chains. And in this case, poultry also ranks third in terms of gross production value within these production chains,” informs Lipp.

According to the engineer, the positive results of agriculture in Rio Grande do Sul are due to decades of research and development programs. Therefore, the prospects for growth are good.

Challenges

Despite the positive result, Rio Grande do Sul still has challenges to overcome. For Luiz Fernando, consultant for Safras & Mercado, soybean production in the state could have been even greater. “We had a break again due to La Niña, but there was some recovery. Losses weren’t that big this year. Soy is the main crop in Rio Grande do Sul, which is the third largest producing state in Brazil today, so it is essential for soy to recover production”, he explains.

According to the consultant, the climate is the main challenge for crops in the state. The climatic problems hinder the production of Rio Grande do Sul, which could have been around 22 million tons, but was 14 million.

Expectations

Luiz Fernando points out that the initial expectation is favorable, with a recovery in soybean production. “Maybe increase a little bit. And if the weather helps, we will harvest a crop of more than 20 million tons, which will increase our soybean percentage in Rio Grande do Sul’s VBP.”