Brazilian agribusiness: global power in the field

Brazilian agribusiness: economic strength, innovation and prospects

Brazilian agribusiness is a pillar of the national economy: it accounts for around 24.8% of GDP and more than 20% of formal jobs, and is currently one of the country's main drivers. In 2024, the sector employed 28.2 million people (26% of jobs) and raised exports to record levels (US$ 166.6 billion in 2023, almost half of Brazil's foreign sales). This economic weight reflects the vast diversity of products and markets in the national agricultural sector, which gained global prominence by opening 78 new markets in 2023. From grains to meats, including biofuels and forestry, Brazil has consolidated itself as an essential supplier of food, fiber and energy, a role recognized even by the UN when it estimates that our production will need to grow 41% by 2050 to feed a world of 9 billion people.

Overview: regions and main cultures

Agribusiness is concentrated mainly in three regions (Central-West, South and Southeast), which together account for more than 80% of the country's Gross Production Value (GVP). The following states and products stand out:

• São Paulo (R$159.3 billion) – the largest GVP in the country. Leader in sugar cane (it generates R$45 billion and represents more than half of the national production), the state also dominates citrus production (2/3 of the national orange juice) and is important in coffee, corn and beef cattle.

• Mato Grosso (R$151.9 billion) – Brazil’s largest grain producer. It is responsible for ~17% of the country’s GVP and is the leading producer of soybeans (the country’s main product), as well as corn and cotton. Its production supplies large export chains.

• Paraná (R$130.9 billion) – the second largest producer of soybeans and exporter of chicken in the country. In addition to soybeans and corn, it stands out as a poultry hub (second place in the world) and pork hub, with advanced logistics infrastructure to transport domestic and foreign production.

• Minas Gerais (R$127.1 billion) – led by Arabica coffee (around R$30 billion) and dairy farming. Soybeans and beans are also important for the state. Minas Gerais invests in technology and innovations (such as precision agriculture) to increase crop productivity.

• Rio Grande do Sul (R$108.9 billion) – a strong producer of grains (soybeans, corn, wheat and rice) and meats. Soybeans are the main product (43% of Rio Grande do Sul’s GDP), followed by chicken. RS benefits from good ports (Rio Grande, Pelotas) and a road/rail network for exports.

• Other key states : Goiás (R$95.3 billion, soybeans, corn and cattle); Mato Grosso do Sul (R$61.9 billion, soybeans and livestock); Santa Catarina (R$50.9 billion, largest producer of pork in Brazil, as well as chicken and milk); Bahia (R$49.3 billion, largest producer in the Northeast, with emphasis on cotton, soybeans and cattle); Pará (R$34.2 billion, main producer in the North, with cattle, soybeans and cassava).

Together, these regions form a productive mosaic that ranges from dense irrigated areas of sugarcane and fruit (Southeast), to extensive grain and pasture crops (Central-West) and export-oriented agribusinesses (South). In addition, Brazil has seasonal diversification (second corn crop, second cotton crop) and flexibility to face climate crises in one region while compensating for another.

Main companies in national agriculture

The sector has global giants, many of them with 100% Brazilian roots and a broad international presence. Among the largest are:

• JBS – the world’s largest food company and the largest in the Brazilian agricultural sector. It has revenues of R$350.7 billion (2021), operates around 400 plants in 15 countries and produces beef, pork and chicken, as well as leather, biodiesel and processed foods. It has recently invested in plant-based proteins and personal hygiene.

• Marfrig Global Foods – the world’s second largest meatpacking company. The result of major consolidation (often with acquisitions) in beef and beef by-products, with operations in ~100 countries and investment in sustainable supply chains in the Amazon and Cerrado.

• BRF – the result of the Sadia-Perdigão merger (2009), is one of the largest food companies in the world and the largest exporter of chicken meat in Brazil . It has more than 30 strong brands (Sadia, Perdigão, Qualy, etc.) and operates globally.

• Suzano – eucalyptus pulp giant, the largest in the sector in Brazil. In 2021, it recorded record EBITDA (R$23.5 billion) and is investing billions in expanding factories (e.g. new complex in MS). Its fibers feed paper and cardboard demanded worldwide.

• Copersucar – the largest sugar/ethanol cooperative in Brazil. It controls a large production of sugar and ethanol (exporting 12 million tons of sugar annually) and has grown in the foreign market (in the US and Asia) for ethanol.

• Raízen Energia – a Cosan/Shell joint venture, the largest producer of sugarcane ethanol and exporter of sugar in Brazil. With 35 plants, it generates billions of liters of fuel (6.2 million tons of sugar, 29 billion liters of ethanol) and even electricity from bagasse.

• Amaggi – pioneer in soybeans in Mato Grosso, the largest soybean producer with 100% national capital. It operates on three fronts: production (corn, soybeans, cotton), trading (grain exports, inputs) and logistics (Northern Corridor, via the Madeira/Amazonas rivers). It produces ~1.2 million tons of grains/year.

• SLC Agrícola – one of the world’s largest producers of soybeans, corn and cotton, with 22 farms in 7 states. It introduced industrialized management in the field, achieving high productivity per hectare and integrating innovations such as advanced mechanized planting.

• Minerva Foods – the third largest beef slaughterhouse in the country and a major meat exporter. It stands out for its risk management and growth in foreign markets, in addition to investments in traceability and sustainability in the meat supply chain.

• Cooperatives and others : Cooperatives such as Coamo, Aurora and C.Vale (leaders in grains and meats in the South/Central-West) also deserve mention, in addition to multinational trading companies (Bunge, Cargill, Louis Dreyfus) that operate large warehouses and terminals in the country.

These companies, whether private or cooperative, help to spread Brazilian brands (e.g. JBS, SLC, Marfrig) globally. Many adopt ESG policies, trace their origins, and expand through international acquisitions, consolidating “Brazil’s agribusiness” in the global food chain.

Most exported products and destinations

The agricultural export agenda is led by commodities :

• Soybeans and derivatives (grains, bran, oil) : correspond to ~33% of the total revenue of Brazilian agriculture in 2024. Most of it is sold to China , but Germany, the Netherlands and Italy also appear among the destinations for Brazilian soybeans.

• Meat (beef, chicken and pork) : approximately 16% of agricultural exports. Main destinations are China, the United States, the Netherlands and Chile . Brazil is the world's largest exporter of chicken meat and is among the leaders in beef and pork.

• Sugar and ethanol complex : represents ~12% of exports. Sugarcane grains and refined sugar are mainly exported to markets such as the EU, Middle East countries and Africa.

• Forestry products and pulp : approximately 10% of the exported value. The country is the world leader in exports of short-fiber pulp (eucalyptus) and paper, sold to China, Europe and the USA.

• Coffee : accounts for 7.5% of the total. Brazil is the largest exporter of Arabica coffee; the main buyers are the United States, Germany and Japan.

• Others : cereals (rice, flour) (~6%), tropical fruits (such as orange juice – extensively exported to the US and EU), soybean oil, cotton, processed meats, among others.

Main destinations (2024): China (30.2%) , the European Union (14.2%) and the USA (7.4%) are the largest buyers of Brazilian agriculture. Asian economies (Indonesia, Vietnam) and the Middle East (United Arab Emirates) also stand out in the acquisition of grains, meat and sugar. In short, the Brazilian foreign market is well diversified geographically, ensuring resilience to external sales.

Innovation and technology in the field

Brazilian agriculture has benefited greatly from technology and innovation – the so-called “agro 4.0”:

• Digital agriculture : use of IoT sensors, GPS, drones and satellite images to monitor crops and pastures. Research by Embrapa/Sebrae/Inpe revealed that 84% of Brazilian rural producers already use at least one digital tool (internet, smartphone, apps) in their operations. In particular, the use of drones expanded by 172% between 2016-2020, assisting in soil mapping, precision spraying and disease diagnosis. Connectivity in the field (rural 5G, satellites) has been expanded to support these technologies.

• Startups and agtechs : the country has a vibrant ecosystem of agro innovation. The Radar Agtech Brasil 2023 mapped 1,953 startups dedicated to agribusiness (growth of 14.7% in one year). These companies develop solutions such as farm management software, innovative bioinputs, climate monitoring and robotics. The majority (77%) are part of local innovation hubs, demonstrating the maturity of the sector.

• Integrated systems (ILPF) : Crop-Livestock-Forest Integration is gaining momentum. Events such as AgroBrasília 2025 reinforce the idea that ILPF increases land use efficiency, allowing production and conservation at the same time. Producers who adopt ILPF combine corn/soybean harvests with livestock farming in a cycle, reducing erosion and degrading less forests. Brazil shares these good practices in international sustainability projects.

• Sustainability and ESG : the demand for sustainable agricultural practices is growing. Many companies are implementing plans to reduce emissions, manage water and establish forests (e.g., invest in solar energy on farms). Techniques such as direct planting, crop rotation and biological control are widely used. In addition, socio-environmental certifications (Rainforest Alliance for coffee, RSPO for palm, organics, etc.) add value and open doors in demanding premium markets.

In short, agricultural innovations allow for productivity gains and greater risk control. Producers combine tradition with cutting-edge technology, keeping Brazil competitive in the 21st century.

Industry challenges

Despite its successes, Brazilian agriculture faces structural and external bottlenecks :

• Logistics infrastructure : ports, railways and highways have not kept up with the growth of agribusiness. Investments in infrastructure were only 2.2% of GDP in 2024 , less than half of the recommended amount. Ports (Santos, Paranaguá, Santarém, etc.) are operating at capacity, generating delays and extra costs; in March 2025, 637 thousand bags of coffee were not shipped due to lack of port space. On the roads, long lines for shipping (such as on BR-163 in Mato Grosso) increase the risk of crop loss. Modernization of waterways and railways is urgently needed to optimize internal shipping and reduce logistics costs.

• Environmental issues : Agribusiness has been criticized for its deforestation and emissions. Although deforestation in Brazil fell by 32.4% in 2024 (to ~1.24 million ha), it is still the main player in rural areas (especially the Cerrado and Amazon) and needs to balance expansion with preservation. At the international level, certifications and regulations (such as “zero deforestation” rules) are putting pressure on producers. The lack of strict environmental requirements in the past generates distrust from trading partners, especially in the European Union.

• Access to credit : the 2024/25 Harvest Plan allocated R$400.6 billion to financing (+10% vs. previous harvest), with R$108.6 billion in bonds (LCA/CPR) to capitalize the sector. However, a growing portion of the credit is at free rates (up to 12% per year), which increases the cost for large producers and almost excludes small producers. The suspension of subsidized interest rates in some programs raises uncertainties. Rural credit facilitators and instruments such as cooperatives can help small producers who do not access conventional lines.

• International trade barriers : new agreements require standards. In Mercosur-European Union, the EU has expressed concerns about Brazil’s environmental and health practices (use of pesticides, hormones in meat, labor in the fields). In addition, the Carbon Border Adjustment Mechanism (CBAM) comes into force , which taxes imports of “carbon-intensive” products (such as steel, aluminum, fertilizers). This could burden Brazilian agricultural exports if there is no proof of a lower carbon footprint. Markets such as China and the US also maintain their own strict phytosanitary rules (e.g. residue and contamination limits) that could restrict access.

• Climate and volatility : extreme weather events (droughts in the Midwest, frosts in the South, floods in the Northeast) have become more frequent, impacting food production and supply. At the same time, the exchange rate fluctuation of the real directly influences the result of exports and the cost of imported inputs (fertilizers, machinery). Producers therefore need agricultural insurance, currency hedging and market diversification to mitigate these risks.

Future opportunities

Several vectors point to paths for the expansion of national agriculture:

• Bioenergy and biofuels : Brazil is already a leader in sugarcane ethanol and biofuels. The next wave is 2nd generation ethanol (cellulosic) from sugarcane residues, already under construction by companies such as GranBio and Raízen in the Northeast. There is also great potential in biodiesel (soy, palm, animal fats) and in the production of biokerosene for aviation (SAF – green jet fuel), aiming to reduce CO₂ emissions in the transportation sector.

• Plant-based proteins and new foods : the demand for alternative proteins is growing globally. Brazil, the largest soy producer, has strategic raw materials for plant-based foods. New products (plant-based burgers, soy/pea milks and yogurts) are being developed locally, driven by startups and large agri-food industries. This trend adds value to exported soy and creates jobs in food biotechnology.

• New markets and partnerships : African and Middle Eastern countries continue to expand food security agreements with Brazil. Investments in warehouse infrastructure and bilateral trade partnerships (such as from Angola to Southeast Asia) should open borders for Brazilian meat, cereals and dairy products. Geographic diversification reduces the risk of market concentration.

• Traceability and certifications : modern consumers demand to know the origin of their food. The premium market for organic meats, specialty coffee and certified fruits (Fair Trade, Rainforest Alliance, 4C) is growing. In addition, technologies such as blockchain allow the tracking of grains from planting to bottling. The adoption of traceability systems will provide a competitive advantage, adding value and ensuring compliance with ESG standards.

• Smart and urban agriculture : precision agriculture practices, integration with science (climate simulation platforms) and even urban farming (producing food in cities) are growth niches. Smart farming projects and more efficient cold chains will reduce losses and expand Brazil's share of the global market.

Agribusiness in the financial market

Agriculture also integrates with the capital market:

• Stocks on the B3 : several companies in the sector are publicly traded, allowing direct investment. Among them: JBS (JBSS3) , BRF (BRFS3) , Marfrig (MRFG3) , Minerva (BEEF3) , Suzano (SUZB3) , SLC Agrícola (SLCE3) , Cosan (CSAN3) , among others. The performance of these stocks reflects global factors (demand, exchange rate) and local factors (harvest, policies). Brazilian and foreign institutional investors follow these stocks as a barometer for the agricultural sector.

• Letters of Credit and rural bonds : agribusiness has dedicated resources. For example, in 2024, approximately R$108.6 billion in LCAs (Agribusiness Letters of Credit) and CPRs (Rural Producer Bonds) were issued. These credit securities link the direct investor's capital to rural financing, and are widely used to support the Harvest Plan. In addition, agribusiness debentures with an ESG profile are increasing, attracting investors focused on sustainability.

• Fiagros and investment funds : in 2021, Fiagro (Investment Funds in Agroindustrial Production Chains) was created, a specific fundraising vehicle for the sector. Today, there are dozens of Fiagro funds on B3, investing in agricultural land, agricultural businesses and rural securities. This instrument has democratized access to agricultural assets for retail/qualified investors. In addition, RIAs (Real Estate of farms) and hybrid debentures have emerged, expanding agricultural financing options.

• Countercyclical agriculture : during economic uncertainty, agribusiness tends to attract defensive investments because it is an essential sector. For example, in scenarios of high inflation, food exporting companies pass on value to prices, protecting margins. Therefore, conservative funds and investors sometimes reallocate part of their assets to agribusiness as protection.

In short, agribusiness offers multiple forms of investment, from the direct purchase of shares to participation in specialized funds, demonstrating its financial maturity and strategic importance.

Brazil as an agro-environmental powerhouse

Brazil has established itself as a global agro-environmental powerhouse . Its unique combination of fertile land, favorable climate in many regions, trained workforce and strong scientific base (Embrapa, universities and research centers) guarantees competitive advantages. With investments in technology and sustainability, the sector proves that “producing and preserving” are not contradictory, but rather the way to feed the world. The long-term vision and continuous modernization promise to keep Brazil at the center of global food security. In short, Brazilian agribusiness not only supplies the domestic market and generates wealth; it represents the hope of abundant food and increasingly sustainable methods for the world, reaffirming the country’s leading role in the coming decades.

Sources: Information based on official data and analyses from setorabagrp.org.br, gov.br, agro.estadao.com.br, riotimesonline.com, riotimesonline.com, riotimesonline.com, agrosustentar.com.br, exame.com, embrapa.br, pwc.com.br, poder360.com.br, uol.com.br, agroadvance.com.br, moneytimes.com.br.