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The current economic and political environment in Brazil is challenging, the Global Aquaculture Advocate says.
Widespread corruption scandals have led to a downturn in the country’s economy, with a major devaluation of the Brazilian currency, the Real, increasing inflation, unemployment and interest rates. The government was slow to implement necessary changes in its economy in 2015.
Major government budget cuts and fewer investments combined for Brazil to lose international credibility and to a downgrade of the country’s degree of investment. All of this placed Brazil under a cloud of uncertainty. Expectations for 2016 and 2017 are no better. Brazilian agribusiness, however, prevented the total collapse of the economy, due to exports like soybeans, corn, poultry and beef.
The aquaculture sector, which was already struggling with the severe droughts in the Northeast and the lower than average rainfall in Southeast Brazil, is also expected to suffer with the economic recession. Prices paid to aquafarmers need to increase to keep up with the increased costs of aquafeeds, energy and other production inputs. However, increases in prices may jeopardize domestic sales, as family budgets are already stressed from unemployment, reduced income and inflation.
Export is the alternative for Brazilian aquaculture to grow under this crisis. This article (presented in two parts) brings an update on the current status of the aquaculture sector in Brazil and discusses the limitations and opportunities for the coming years under a recessive economy and following its expected health restoration.
Read the full article in the Global Aquaculture Advocate HERE.
Widespread corruption scandals have led to a downturn in the country’s economy, with a major devaluation of the Brazilian currency, the Real, increasing inflation, unemployment and interest rates. The government was slow to implement necessary changes in its economy in 2015.
Major government budget cuts and fewer investments combined for Brazil to lose international credibility and to a downgrade of the country’s degree of investment. All of this placed Brazil under a cloud of uncertainty. Expectations for 2016 and 2017 are no better. Brazilian agribusiness, however, prevented the total collapse of the economy, due to exports like soybeans, corn, poultry and beef.
The aquaculture sector, which was already struggling with the severe droughts in the Northeast and the lower than average rainfall in Southeast Brazil, is also expected to suffer with the economic recession. Prices paid to aquafarmers need to increase to keep up with the increased costs of aquafeeds, energy and other production inputs. However, increases in prices may jeopardize domestic sales, as family budgets are already stressed from unemployment, reduced income and inflation.
Export is the alternative for Brazilian aquaculture to grow under this crisis. This article (presented in two parts) brings an update on the current status of the aquaculture sector in Brazil and discusses the limitations and opportunities for the coming years under a recessive economy and following its expected health restoration.
Read the full article in the Global Aquaculture Advocate HERE.
The Aquaculturists
This blog is maintained by The Aquaculturists staff and is supported by the
magazine International Aquafeed which is published by Perendale Publishers Ltd
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