The Brazilian economy experienced a 0.4% increment in its first fiscal year of 2018 compared to 2017’s final quarter. Based on verified statistics from the Brazilian Institute of Geography and Statistics (IBGE), the 0.4% was an increment of 1.2% compared to the previous first quarter of 2017. As the President and Chief Executive of Eucatex Flavio Maluf emphasized that such figures signaled a bullish market guaranteed to transform the agricultural sector. Read more about Flavio Maluf at Blog do Ronco
A minimal decline in the Gross Domestic Product (GDP) specifically in livestock and agriculture by 2.6% can be attributed to the unprecedented shortage of truck drivers. According to the CEO, such a shortage significantly affected the agricultural sector for ten days leading to market uncertainty between April and June. More worrying is the fact that several Center-South based plants halted production within the same duration.
While sugarcane harvest dropped by 19% between April and June, maize also took a fair downfall and plummeted to 33% during the same period. Suffice to say, the lack of constant product circulation not only affects trading and producers but also the entire feed production leading to massive production in protein synthesis.
Flavio Maluf firmly believes that the truckers’ strike not only affected corn circulation but also affected meat production. Alternatively, coffee distribution had also been adversely affected despite significant harvests of 61% in the second quarter. This ultimately contributed to delays in the receipt of raw materials which exporters could not load products in the ports. Flavio Maluf also hailed soybean production of 119 million tons which represented 51% of the first quarter’s harvest. According to a verified report from Folha de S. Paulo, the soybean increment coupled with decreases in rice and maize production placed the country’s economy in a limbo. The truck drivers’ strike can be attributed to decreases in the prices of diesel oil and the unexpected regulations of road freight.
Flavio Maluf in Brief
Flavio Maluf is a seasoned entrepreneur tasked with managing Eucatex and Grandfood Companies. He is credited with playing a critical role in Eucatex Group’s rapid rise to global dominance courtesy of his keen business acumen and insightful leadership.