Bahia Farm Production Rises While Falling Prices Cut Sector Value
Farm and livestock production in Bahia increased 5.7% year over year in the second quarter of 2026, helped by a record soy crop, more cotton, and a record cattle slaughter. However, farm prices fell 13%, causing the sector's value to decline 8.2% to R$40.3 billion. The state statistics office SEI released preliminary figures and warned that a possible El Niño could affect the next harvest.
Bahia’s April–June farm and livestock volume rose 5.7% from a year earlier, exceeding the state’s overall 2.3% economic growth. SEI attributed the gain to record soy output, increased cotton, and a record cattle slaughter. The farm economy has now outpaced the broader state economy for six straight quarters.
The state’s far western soy and cotton belt helps make agriculture, from inputs to transport, roughly a quarter of Bahia’s output. China is the largest buyer. SEI’s preliminary bulletin also noted possible El Niño effects on the coming harvest.
Higher volumes but lower farm-gate prices could squeeze Bahia’s growers, farmworkers, and rural businesses, even as exporters and buyers benefit from more soy and cotton. If El Niño disrupts the next harvest, income uncertainty may deepen for communities tied to agriculture, while consumers and traders could face greater price volatility. The outcome may depend on whether global demand and weather offset weaker local prices.