The Agribusiness Confidence Index (IC Agro) assessed by the Federation of Industries of the State of São Paulo (Fiesp) closed the third quarter of 2022 at 116.3 points, an increase of 6.1 points over the previous survey and 5. 4 points over the first quarter of 2022. According to Fiesp, the increase is due to the improvement in the assessment of the economy and the positive behavior of some indicators.
According to the data, the index of all segments surveyed (farmers, livestock and industries located before and after the gate) remained above 100 points. The confidence level of Indústrias de After Porteira (food companies) was the only one where there was a slight decrease. According to Fiesp, this occurs due to the cooling of consumption due to high interest rates.
Industry Confidence Index
The data also show that the confidence level of companies that make up the agribusiness production chain grew by 4.2 points from the second to the third quarter of 2022, closing at 117.3 points. According to the entity, the result is due to the enthusiasm of the agricultural input industries (the so-called Antes da Porteira) and the decline in optimism in the food sector (Depois da Porteira).
When analyzing the behavior of the industries Antes da Porteira, the level of optimism for the third quarter was 128.0 points, up 18.2 points. “The year started with high prices and insecurity regarding the supply of raw materials, problems that have since been alleviated, making the terms of exchange a little more favorable for producers. This explains part of the improvement in the market assessment of both fertilizers and agrochemicals, despite the fact that prices for these products are still operating at high levels”, said the director of the Agribusiness Department at Fiesp, Roberto Betancourt.
The Confidence Index for Industries After Porteira dropped by 1.8 points, from the second to the third quarter, closing at 112.7 points. “The most recent data from the IBGE show a decline in physical production in the food industries, one of the main sectors of the so-called Post-Porteira for exporters, such as tradings, result also influenced by the prospect of cooling in global trade due to the slowdown of the economy in several parts of the world.”
