Sugarcane has overtaken corn as Brazil's second most valuable agricultural crop in IBGE's recently released Municipal Agricultural Production (PAM) report for 2023.

The document highlighted the growth in planted area and the performance of the main agricultural crops in Brazil.

Overall, the value added by agriculture fell by 2.3% in 2023 compared to 2022 and reached R$814.5 billion due to lower prices for the main commodities.

The drop occurred despite the grain harvest, estimated by the agency at 316.4 million tons, a volume 19.6% higher than the previous year's production and a record in the historical series. Soybeans, sugar cane, corn and cotton all registered production records in the historical series.

Soybeans continue to lead the way, occupying a harvested area of 44.45 million hectares. Production reached a new record of 152.14 million tons, consolidating soy as the absolute leader among Brazilian agricultural products.

The value generated by soybeans in 2023 was R$348.7 billion, corresponding to 42.8% of the total value of agricultural production.

Sugarcane, one of Brazil's most traditional crops, reached 782.6 million tons harvested on 10.06 million hectares. This production generated R$102 billion, representing 12.5% of the total value of agricultural production.

The growth in sugarcane production was driven by the renewal of sugarcane plantations and the increase in productivity last season.

Corn also presented significant figures. With a harvested area of 22.31 million hectares, the country produced 131.95 million tons of corn in 2023.

Although the volume of production grew by 20.2% compared to the previous year, the value of production fell by 26.2%, totaling R$101.8 billion. This drop in value is related to the reduction in international commodity prices.

Coffee production also performed well in 2023. 3.4 million tons were harvested from an area of 1.92 million hectares. The value generated, however, fell by 15.2% to R$44 billion. The drop in value is attributed to the correction in prices on the international market, after years of high prices.

Another notable crop was cotton, which recorded production of 7.5 million tons, an increase of 18.3% compared to 2022. The value generated by cotton production was R$29.7 billion, which represented a 9% drop due to the fall in international prices for the fiber.

These five crops - soybeans, corn, sugar cane, coffee and cotton - are responsible for 76.% of the value generated by Brazilian agriculture. Together, they have contributed to strengthening the agricultural sector, even in a year of climatic challenges and price corrections.

Source: Edition based on information from IBGE | Agrofy News