THE EFFECTS OF THE COVID-19 PANDEMIC ON THE PRODUCTION COSTS OF TRANSGENIC SOYBEANS IN BRAZILIAN MUNICIPALITIES

Abstract

World Bank projections (2020) show the effects of the Covid-19 pandemic on world economic growth, generating a 5.2% reduction in 2020. The outbreak of the Covid-19 pandemic (SARS-CoV-2 coronavirus) , from China in December 2019, provoked the need for social isolation, given the high number of infected people, deaths and the imminent collapse of health systems. The economic repercussions caused by Covid-19 generated an abrupt drop in supply and demand in most economic activities and signs of recession worldwide. Agribusiness through commodity exports positively affects the Brazilian trade balance. The objective of this work is to identify the impacts of the covid-19 pandemic on the costs of producing transgenic soy in Brazilian municipalities from 2018 to 2021. The methodology consists of carrying out a survey of fixed and variable costs using data available on the website of Conab for the Brazilian municipalities that produce transgenic soy, generating a data panel and then applying the technique known as difference-in-difference regression. The results point to a rise in fixed costs of 31%. As for variable costs, there was a record of 24% in the general group. Among the variable costs, seeds stood out, with an increase of 29%. These increases are a reflection of commodity prices, currency devaluation against the dollar and the crisis generated by Covid-19 in global food supply and demand.