Brazil is one of the most important economies in Americas, with considerable natural resources. Agriculture is an important contributor to its GDP, as well as the only economic sector that experienced growth during the COVID-19 pandemic.

According to the estimates of CEPEA and CNA, the GDP of Brazilian agribusiness increased by 8.36% in 2021, accounting for 27.4% of Brazil’s total GDP, the highest level since 2004. This spectacular figure was generated from Brazil’s 6.4 million plots of land, of which 68 million hectares of agricultural land was productive, equivalent to 8% of Brazil’s total territory.

Brazil is the world's largest producer and exporter of soybeans, coffee, orange juice and sugar, and the second largest exporter of corn and cotton. In 2021/2022, soy cultivation in the country suffered drought damage, affecting both production and exports. In 2022/2023, a recovery in productivity and an increase in planted area are predicted. According to the latest survey conducted by the National Supply Company (CONAB), Brazil’s soy harvest should grow 21.3% in 2022/23, with a forecast of more than 152 million tons, as well as exports of 95.87 million that will represent a rise of 22.5% over 2021/2022. On the other hand, forecasts made by Safras&Mercado show that while planted area decreased slightly, per-unit recovery is increasing, making it possible for Brazil’s corn production to reach a record high of 126 million tons, up 5.7% year-on-year.

In early 2022, the war in Ukraine was a concern around the world. In the first few months of the war, supplies and the pricing of fertilizers in Brazil became volatile. Despite the unfortunate situation, with the efforts of the Brazilian government and private companies, fertilizers from Russia and pesticides stocks are sufficient to meet the new planting season in September. Every year, farmers have to deal with the rising number of uncertainties of various types, showing the resilience of the Brazilian agricultural production system. On the other hand, there is the challenge of balancing production costs as fertilizers continue to be priced higher than in recent years while commodity prices have not risen at the same rate. However, Brazilian farmers are still excited about the prospect of a bumper crop.

Among the 6 million farmers Brazil has around 500,000 farmers above scale accounting for 95% of market share of plant protection inputs. All the farmers are constantly looking for more productive and adaptive agricultural solutions, enabling Brazilian agriculture to further progress. The Brazilian government is implementing a program to create new "startups" companies focusing on the digitalization of the production process and everything that surrounds agribusiness to optimize and bring competitiveness to the production of healthy and competitive foods globally.

Brazil is the world’s largest plant protection market. According to data from National Syndicate of Plant Protection Products Industry (SINDIVEG), the Brazilian plant protection market was valued at $13.3 billion in 2021, a 9.9% increase over 2020. Considering that it is such a huge market, the number of 500,000 farmers over scale is very small in proportion. According to the data from Multcom, 27% of the above market is directly accessed, i.e., direct and face-to-face dealings between agronomists and 3,000 farmers or groups, and 26% are accessed by the services of experts from farmer cooperatives, while 47% are accessed by distributors and re-distributors. This market accessibility also applies to the fertilizer, seed and other sectors.

Therefore, agronomists can greatly influence the market, which is a basis for the commercial success of plant protection suppliers. According to data from CONFEA, there are currently 105,293 agronomists in Brazil, and nearly 10,000 agronomists will graduate from 534 national universities every year. These professionals, along with animal technicians, veterinarians and agricultural technicians, will jointly help Brazilian farmers and ranchers to position Brazilian agriculture at the forefront of the world.

Source: AgroNews