Agribusiness Opportunities in Brazil

Agribusiness is one of Brazil’s largest economic sectors. It is well diversified which helps ensure the country is largely self-sufficient in food. In 2019, Brazilian agribusiness increased 3.8%, and it was responsible for 21% of Brazil’ s GDP. It is estimated that the sector represents 43% of Brazilian exports (or US$97 billion), and it employs nearly 40% of Brazil’s workforce.

Brazil is a major producer, consumer, and exporter of a wide range of agricultural products. The country is a large, dynamic, and rapidly growing market for agricultural equipment. This growth is driven by an extensive commercial farming sector that is itself a major global exporter of agricultural commodities, such as soybeans, coffee, sugar, corn, meat and orange juice.

The estimated volume of US agricultural equipment exports to Brazil in 2019 was worth US$476 million, including parts, components, implements, and agricultural machinery. It increased annually at a rate of more than 15% from 2015 through 2019. Equipment for producing and harvesting grain, oil seeds, and other commodity row crops represented nearly 50% of total exports to Brazil in 2019, worth US$239 million. Parts and components account for nearly 48% of all agricultural exports, worth US$228 million. US agricultural equipment exports to the fresh produce sector was US$15 million in 2019, and livestock and poultry equipment accounted for nearly one percent of total exports worth US$5 million.

The fundamentals of Brazil’s agricultural economy remain strong and the country will remain a major market for U.S. agricultural equipment.

• Largest market for agricultural machinery in Latin America.
• 4th top market for U.S. agricultural machinery exports (2019).
• Brazil is a major global exporter of agricultural commodities, especially soybeans, coffee, sugar, corn, orange juice, and animal protein.
• Grain harvest 2018/2019 was 242 million metric tons in 60 million hectares. Estimated grain harvest 2019/2020: 252 million tons in 65 million hectares.
• Planted area can still be largely increased.
• Temperate climate, world’s largest freshwater reserves, excellent quality and diversity of soils and agro-ecological systems.
• Several global manufacturers of agricultural machinery also have large factories in Brazil, including John Deere, AGCO, Argo (Landini), Case NH, Caterpillar. These local manufacturers represent a major opportunity for suppliers of parts and components as OEM and for the after sales market.
• Import tariffs are normally high in Brazil. Best prospects are for machines and components that do not have a similar manufactured in Brazil, and therefore have lower import tariffs.

Learn about upcoming business opportunities in the sector, understand the latest developments in the environment, and learn about tools and resources to support your company’s market entry to Brazil directly from the experts!