Agriculture accounts for 19% of São Paulo’s GDP.

After a year marked by adverse weather conditions and price volatility, the GDP of São Paulo's agribusiness totaled R$ 657.6 billion in 2024, representing a 4.0% growth compared to 2023 and a 24.0% share of Brazil's agribusiness GDP. Considering the performance of the state's total GDP, agribusiness accounted for 18.9% in 2024, a relatively stable percentage compared to the previous year. The data comes from the survey "Gross Domestic Product of São Paulo's Agribusiness," calculated by the Federation of Industries of the State of São Paulo (Fiesp) in partnership with the Center for Advanced Studies in Applied Economics (Cepea/Esalq-USP). According to the entities' findings, the agro-industrial segment was one of the main drivers of São Paulo's agribusiness, advancing 6.9%, as was the agro-services sector, which registered a 7.8% increase. According to the study, São Paulo's agribusiness accounts for 32.7% of Brazil's agribusiness, making it the leading state in the sector. The growth recorded in 2024 was mainly driven by a 27.5% increase in livestock-based activities, although agricultural-based activities also showed an expansion of 4.4%. Roberto Betancourt, director of the Agribusiness Department at Fiesp (Federation of Industries of the State of São Paulo), explains that in the livestock industry, GDP increased due to higher slaughter of cattle, pigs, and poultry, as well as increased fish production, while dairy products registered a decrease in volume. "There was also an increase in average prices, although the greater supply of cattle and fish limited this increase," adds the businessman. According to Fiesp's findings, the appreciation of beef was driven by the strengthening of domestic demand, favored by improvements in the labor market. Externally, beef exports reached higher volumes, driven by lower meat availability in competing countries, which particularly benefited São Paulo's meatpacking plants that are more integrated into international trade. In this context, even with higher production costs, the industrial beef segment in São Paulo managed to maintain positive margins and expand processing, contributing positively to the sector's growth in 2024. According to the director of Agribusiness at Fiesp, in the agricultural-based agro-industry, GDP growth was favored by higher real prices, especially for coffee and juices, even in a scenario of lower production in the sector, particularly in the ethanol and sugar industries. "Data from the National Supply Company (Conab) shows that the decrease in the supply of raw materials combined with the lower competitiveness of ethanol compared to sugar caused a reduction in the total volume of ethanol produced from sugarcane in São Paulo," highlights Betancourt. :: The dynamism of the agricultural services sector The growth of São Paulo's agribusiness was accompanied by the vigor of agricultural services, with a highlight being the almost 30% jump in support for livestock farming. Even at a more moderate pace, agricultural services also grew (3.3%). "This dynamism shows how progress in industrial processes, both before and after the farm gate, ends up driving all the demand for specialized services," explains Betancourt. The agricultural services sector includes activities such as storage and transportation, marketing, financial services, technical assistance, consulting, accounting and administrative services, among others that support the production, processing and distribution phases of agricultural products. That is, even if it does not directly generate tangible goods, this segment enables the functioning and competitiveness of agribusiness chains. The advancement of livestock agricultural services was related to the performance of livestock farming in the state of São Paulo, especially in the beef, pork and chicken segments, which recorded historical increases in production and exports. The increased movement of animals for slaughter, the surge in external demand, and the rise in volumes processed by meatpacking plants have increased the need for services. Meanwhile, agricultural agro-services showed more moderate growth, reflecting the context of the agricultural sector in 2024, which faced a contraction in primary and industrial production of important crops. Even so, the positive performance of services related to the agricultural sector demonstrated a capacity for adaptation and continuity of logistical, commercial, and technical support operations. In states like São Paulo, grain production and the agricultural-based agro-industry, such as juices, coffee, and vegetable oils, maintained a high demand for support services such as storage, transportation, export, and specialized services.

This text was translated by machine from Brazilian Portuguese.