This Index considers FOB prices in dollars (including transportation costs to the vessel that will transport to the purchasing country) of Brazilian agribusiness exports, including agricultural products in natura and processed. In other words, it refers to the prices per unit received by exporters per category of product. The monitoring of this Index is crucial for the analyses of the evolution of each product in the international market as well as the price formation received by national growers. In the calculation of IPE-Agro/Cepea, exports data from the MDIC/Aliceweb system (Ministry of Development, Industry and Trade) have been used since 1989.
To compose the Index, products classified as components of agribusiness were selected, described in the System of Imports and Exports of Agribusiness from the Institute of Agricultural Economics (IEA, 2002).
From that system, the products were grouped into 17 categories, including:
(a) Capital goods/inputs (fertilizers and correctives, chemicals for agricultural defense, machines and pieces) and (b) agribusiness, which gathers the primary and industrial sectors and t was subdivided into: textile, bovine, fish, coffee and stimulants, sugarcane and saccharide, fruit, vegetable crops, flowers and ornaments, cereals/legume/oilseed, vegetable fat, grains for direct consumption, forest products, tobacco, special agribusiness (niches of animal production) and niches of vegetable production. However, chapter 17 (capital goods and inputs) is not in the composition of the indexes.
The IC-Agro/Cepea measures the real effective exchange rate for the Brazilian agribusiness. It represents the evolution of Real (Brazilian currency) weighted average against the currency of the ten most important Brazilian partners in agribusiness in the last three years.
Available data were used to: the United States, Japan, Germany, Netherlands (Holland), Italy, Argentina, France, the United Kingdom, Canada, Chile, Spain, Paraguay and China for the years from 1989 to 1995. To the Euro Zone, the United States, Argentina, Japan, China, Paraguay, Uruguay, Chile, Russia, South Korea, Canada, Venezuela and Hong Kong, according to the participation of each country in the Brazilian exports from 1996 onward. To calculate this Index, information on the exchange rate and inflation of the countries listed above is collected every month. The sources are web pages of the International Monetary Fund (IMF), Central Bank of Brazil, Institute for Applied Economic Research (Ipea) and the official statistic websites of the countries with more agribusiness trades with Brazil.
The IAT-Agro/Cepea is a result of the multiplication of two previous indexes. Thus, attractiveness of exports may rise because prices in dollar (IPE-Agro/Cepea) have increased or because Real has devaluated when compared to other currencies (IC-Agro/Cepea).
The IVE-Agro/Cepea measures the evolution of the physical exports volume of Brazilian agribusiness. For its calculation, data from the system AliceWeb, of Secex (Foreign Trade Secretariat), are collected.
Note: The IC-Agro uses as a basis the ten most important purchasing countries. The IPE-Agro and the IVE-Agro consider all Brazilian exports for all destinations, regardless of the participation of each country.