Agribusiness of Brazil

Agribusiness in Brazil (or Brazilian agribusiness) encompasses the farming, cattle raising, and agro-industrial activities in the country. Brazil is one of the world’s largest producers and exporters of agricultural commodities such as soybeans, maize, sugarcane, coffee, orange juice, and beef. The sector plays a central role in Brazil's economy, accounting for about a quarter of its Gross Domestic Product (GDP) when the entire production chain is considered, and is a major driver of regional development, particularly in the Center-West region.

Agribusiness in Brazil is supported by a robust technological infrastructure, including research conducted by the Brazilian Agricultural Research Corporation (Embrapa), and by government credit programs such as the Plano Safra (Harvest Plan). However, the expansion of large‑scale farming and ranching has also been accompanied by significant environmental and social impacts, including deforestation in the Amazon and Cerrado biomes, intensive use of pesticides, land concentration, and conflicts with indigenous and traditional communities. These contradictions – between record harvests and persistent food insecurity, and between economic growth and environmental degradation – have made Brazilian agribusiness a subject of intense national and international debate.

History

Modern Brazilian agribusiness has its roots in the colonial plantation system, but its transformation into a globally competitive, technology‑driven sector began in the mid‑20th century.

Until the 1960s, Brazilian agriculture was largely extensive and low‑technology, focused on a few export crops (coffee, sugar) and subsistence farming. The military government that took power in 1964 made the modernization of agriculture a strategic goal, viewing it as a way to generate foreign exchange and integrate the national territory. This period saw the creation of key institutions: the Brazilian Agricultural Research Corporation (Embrapa) was founded in 1973, becoming a driving force behind tropical agriculture research.

A pivotal development was the "Cerrado revolution" (revolução do Cerrado) from the 1970s onwards. Through soil correction techniques (notably liming), the development of tropical soybean varieties by Embrapa, and government subsidies, the vast Cerrado savanna – once considered unfit for agriculture – was turned into one of the world's most productive farming regions. This expansion was also driven by the construction of new infrastructure, such as highways and the Port of Santos improvements, and by the establishment of the Plano Safra credit program in the 1990s to support commercial farmers.

During the 1990s and 2000s, trade liberalization, macroeconomic stabilization, and high commodity prices (especially from the 2000s commodities boom) further consolidated the sector. Brazilian farmers adopted no‑till farming, precision agriculture, and genetically modified crops on a large scale. The country emerged as a top global exporter of soybeans, beef, poultry, maize, cotton, and other products. This growth was accompanied by the rise of large domestic and multinational corporations, including meatpackers JBS and BRF, and trading houses like Amaggi.

The expansion of the agricultural frontier, however, has also been marked by increasing land concentration, social conflicts over land, and deforestation, particularly in the Amazon and Cerrado biomes, which became central issues in the environmental debate surrounding Brazilian agribusiness. In recent decades, Brazilian agribusiness has also expanded beyond national borders, with Brazilian farmers and companies acquiring large tracts of land in neighboring countries such as Paraguay and Bolivia.

Economic significance

Agribusiness is a major component of Brazil's economy. According to the Center for Advanced Studies in Applied Economics (CEPEA), in partnership with the Brazilian Confederation of Agriculture and Livestock (CNA), the agribusiness sector accounted for 24.8% of Brazil's Gross Domestic Product (GDP) in 2020, 27.6% in 2021, and 24.1% in 2022. In the second quarter of 2024, the sector's GDP showed a decline of 2.69% compared to the previous quarter, continuing a trend of retraction.

The Gross Value of Agricultural Production (VBP), calculated by the Ministry of Agriculture and Livestock, reached a record R$ 1.189 trillion in 2023, with crops accounting for R$ 814.77 billion and livestock for R$ 374.58 billion.

The sector is also a significant employer. In 2022, the number of people working in Brazilian agribusiness reached 19.01 million, a record for the historical series, representing 19.4% of the country's employed population. This figure increased further in 2023, to 19.7 million people employed.

Regionally, the Center-West has been the fastest-growing region in Brazil, driven primarily by agribusiness. In 2023, its economy expanded by 5.1%, compared to the national average of 2.9%. Mato Grosso state is the country's largest producer of grains, cotton, and livestock.

Government programs

The federal government's main instrument to support commercial agriculture is the Plano Safra (Harvest Plan), an annual credit program offering subsidized loans for investment and costing. For the 2024–2025 crop year, the plan allocated R$ 400 billion for business agriculture, and for 2025–2026, a record R$ 516.2 billion was announced. The program includes incentives for sustainable practices and low-carbon agriculture.

Key players

Brazilian agribusiness comprises a diverse set of actors, including large multinational corporations, domestic conglomerates, cooperatives, research institutions, and trade associations.

Major companies

According to rankings published by Forbes Brasil, the largest companies operating in the Brazilian agribusiness sector by net revenue include both global commodity traders and national processors. In 2023, the top ten were:

• JBS (meat processing);
• Bunge (grain trading and processing);
• Cargill (grain trading and processing);
• BRF (food processing);
• Amaggi (grain trading, farming, and energy);
• Louis Dreyfus Company (grain trading);
• COFCO International (grain trading);
• Marfrig (meat processing);
• Suzano (pulp and paper);
• Raízen (sugar, ethanol, and energy).

Other major players frequently listed among the largest include ADM, Copersucar, and Cosan. These companies are active across the entire production chain, from input supply and farming to processing, logistics, and exports.

Research and development

The Brazilian Agricultural Research Corporation (Embrapa), linked to the Ministry of Agriculture and Livestock, is the main public research institution responsible for technological innovation in the sector. Founded in 1973, Embrapa played a crucial role in adapting crops such as soybean, wheat, and cotton to tropical conditions, enabling the agricultural occupation of the Cerrado biome. It also develops technologies related to soil management, biological nitrogen fixation, integrated pest management, and sustainable production systems. Embrapa maintains a network of decentralized research units across the country and collaborates with international agricultural research organizations.

Trade associations

Several industry associations represent the interests of different segments of agribusiness. The Brazilian Confederation of Agriculture and Livestock (CNA) is the main national representative body of rural producers, advocating for sectoral policies and providing technical and economic intelligence. The Brazilian Association of Vegetable Oil Industries (Abiove) represents the soybean complex; the Brazilian Animal Protein Association (ABPA) represents poultry, pork, and egg producers; and the Brazilian Sugarcane Industry Association (UNICA) represents the sugar‑energy sector. These associations engage in policy advocacy, market promotion, and sustainability initiatives.

Other relevant entities include the Organization of Brazilian Cooperatives (OCB), which coordinates agricultural cooperatives, and sectoral bodies such as CropLife Brasil, which represents the plant science industry (pesticides, biotechnology, and seeds).

International trade

Brazil is one of the world's leading players in agricultural trade. The country is the largest exporter of soybeans, beef, chicken meat, sugar, and coffee, and among the top exporters of corn, cotton, orange juice, and ethanol. According to the Embrapa, in 2020 Brazil was the fourth largest grain producer globally and the largest beef exporter.

The main destinations for Brazilian agricultural exports are China, the European Union, the United States, and other Asian and Middle Eastern countries. China is by far the largest single buyer, absorbing more than one third of Brazil's agricultural exports, particularly soybeans, meat, and cellulose. Other significant importers include Japan, South Korea, Vietnam, Iran, Saudi Arabia, and Russia.

The composition of Brazilian agricultural exports has diversified over time. While traditional commodities such as coffee and sugar remain important, the share of soybeans, corn, cotton, and meats has grown substantially since the 1990s. The country also exports processed agricultural products, including soybean oil, chicken cuts, beef preparations, fruit juices, and ethanol.

Agricultural trade is a key component of Brazil's balance of trade. In several recent years, the sector has generated a trade surplus that offsets deficits in other industrial sectors, contributing to the country's external accounts stability. The expansion of export capacity has been supported by investments in port infrastructure, particularly in the Santos and Paranaguá ports, and in the Northern Arc (ports in the North and Northeast regions), which have reduced logistics costs for grains and soybeans produced in the Center-West.

In the 2020s, Brazilian agribusiness faced occasional trade disruptions due to sanitary bans (e.g., atypical BSE cases temporarily halting beef exports to China) and international price volatility, but the long-term trend has been one of steady export growth.

Social and environmental impact

The expansion and intensification of Brazilian agribusiness have generated significant social and environmental consequences, which are the subject of intense debate among researchers, policymakers, and civil society organizations.

Environmental issues

Deforestation and land use change

A large body of scientific evidence links the advance of the agricultural frontier to deforestation, particularly in the Amazon and Cerrado biomes. According to a report by the World Wide Fund for Nature (WWF), the expansion of cattle ranching and soybean farming is the main driver of vegetation loss in these regions. A 2022 study published in the journal Geografia em Questão found a strong spatial correlation between the growth of agricultural activities and deforestation in the Amazon between 2007 and 2017.

Illegal deforestation associated with agribusiness has been documented by multiple sources. A 2022 report by the Correio do Brasil newspaper, citing official data, stated that agribusiness leads illegal deforestation in Brazilian biomes. Research by the Federal University of Minas Gerais (UFMG) indicates that much of the cleared land in the Amazon is initially used for extensive cattle ranching but is often abandoned after a few years due to soil degradation, leading to further clearing of new areas.

The MATOPIBA region – an agricultural frontier encompassing parts of Maranhão, Tocantins, Piauí, and Bahia – has become a hotspot of deforestation and land conversion in the Cerrado. Research shows that the region has experienced high rates of native vegetation suppression due to large‑scale grain farming.

Biodiversity loss

The conversion of natural ecosystems into farmland and pasture leads to loss of biodiversity. A study supported by WWF Brasil highlighted that the expansion of agriculture and ranching reduces biodiversity in the Cerrado and Amazon, threatening endemic species and ecosystem services. The Cerrado, one of the world's most biodiverse savannas, has already lost more than half of its original vegetation, largely due to agribusiness expansion.

Pesticide use

Brazil is one of the world's largest consumers of pesticides (agrotóxicos). Heavy reliance on chemical inputs in large‑scale farming has raised concerns about environmental contamination and public health. A 2017 study published in the journal Trabalho, Educação e Saúde examined the health impacts on agricultural workers in Northeast Brazil, linking pesticide exposure to acute and chronic illnesses. An editorial in Cadernos de Saúde Pública described pesticides as "hidden poisons on our table" and called for stricter regulation. University outreach publications have also drawn attention to the risks of pesticide use for human health and the environment.

Climate change debates

The relationship between Brazilian agribusiness and climate change is complex and contested. On one hand, agriculture and land‑use change are significant sources of greenhouse gas emissions in Brazil. On the other hand, some actors within the sector have been accused of promoting climate change denial or downplaying the role of agriculture in global warming. Investigative reports by BBC Brasil and UOL have documented how agribusiness interests fund lectures and events that spread skepticism about anthropogenic climate change. Academic analyses have described this as part of a "cultural war" against environmental evidence. However, some scientists and rural representatives contest the prevailing climate science or advocate for a greater role of agriculture in carbon sequestration. Environmental journalists have criticized what they see as a strategic use of denialism to delay regulation.

Social issues

Land concentration and conflicts

The expansion of large‑scale agriculture has been associated with increased land concentration and conflicts over land, particularly involving indigenous peoples, quilombola communities, and traditional populations. A 2017 hearing at the Chamber of Deputies heard testimony that agribusiness expansion, along with hydroelectric projects, has been a major factor in displacing indigenous communities. In the MATOPIBA region, research indicates that the influx of large farming operations has intensified social inequalities and disrupted traditional ways of life. A dossier published by the organization De Olho nos Ruralistas documented over 700 meetings between environmental authorities and agribusiness and mining representatives, suggesting close ties between regulators and the regulated industries.

Poverty and inequality in agricultural frontiers

Despite the wealth generated by agribusiness, many municipalities at the agricultural frontier exhibit persistent poverty and high social inequality. Studies have shown that in parts of the Amazon and MATOPIBA, economic growth driven by agriculture has not translated into broad improvements in human development indicators. A 2018 report by the environmental news site Ecoa described a pattern of "income concentration, deforestation, and depletion of natural resources" in the Cerrado. More recently, Agência Brasil reported that the "agribusiness capitals" in the Center-West region accumulate social problems, including inadequate housing, health, and education services, despite high agricultural output.

Long-term sustainability concerns have been raised by researchers at the University of Brasília (UnB), who warned that the prevailing agricultural development model may become unsustainable due to its environmental impacts.

The paradox of production and hunger

A recurring theme in debates about Brazilian agribusiness is the coexistence of record agricultural harvests with the persistence of hunger and food insecurity. Data from the Food and Agriculture Organization (FAO) and Brazilian government sources show that while agricultural production has reached all-time highs, millions of Brazilians still suffer from inadequate access to food.

A 2021 report by the Oswaldo Cruz Foundation (Fiocruz) argued that the agribusiness model, focused on export commodities, contributes to food insecurity by prioritizing cash crops over food for domestic consumption and by concentrating land. The Federal Senate's TV channel broadcast a report in 2022 highlighting the apparent contradiction between grain production records and rising hunger. Trade union publications have echoed this critique, asserting that "agribusiness produces food but contributes to hunger in Brazil."

On the other hand, representatives of the agribusiness sector dispute this framing. The CNA, for instance, has stated that "agricultural family vs agribusiness is a fallacy and nonsense," arguing that the entire agricultural sector, including family farming, contributes to food production and that the causes of hunger are related to distribution and income rather than production. Economists have also noted that Brazil's strong agricultural performance generates foreign currency and tax revenues that can fund social programs, potentially alleviating hunger.

Political influence

The agribusiness sector exerts significant political influence in Brazil, primarily through the bancada ruralista (ruralist caucus), a cross-party parliamentary group in the National Congress dedicated to defending the interests of large landowners and agribusiness corporations. The bancada ruralista is one of the most powerful and best-organized lobbies in Brazilian politics, known for its ability to block or modify legislation perceived as harmful to the agricultural sector.

The size and influence of the ruralist caucus have grown in recent decades. Following the 2018 elections, the bancada ruralista comprised around 200 members of the Chamber of Deputies (approximately 40% of the house) and approximately 30 senators. This representation increased further after the 2022 elections. An analysis by UOL in 2022 found that 68% of Chamber deputies had voting records consistently aligned with ruralist positions on issues related to the environment, indigenous rights, and rural workers.

The bancada ruralista has been particularly active in advocating for the relaxation of environmental licensing requirements, the expansion of agricultural land use, and the weakening of protections for indigenous lands and conservation units. During the Bolsonaro administration (2019–2022), the caucus successfully pushed for the transfer of the Brazilian Forest Service to the Ministry of Agriculture and for changes in the composition of the National Environment Council (CONAMA), reducing the representation of civil society. Ruralist legislators also sought to control the Chamber's Environment Committee, aiming to block environmental legislation and shield the then-Environment Minister Ricardo Salles from parliamentary scrutiny.

The sector's political power extends beyond Congress. A dossier published by the observatory De Olho nos Ruralistas documented over 700 meetings between representatives of the agribusiness and mining sectors and environmental authorities between 2019 and 2022, suggesting a high degree of access and influence over environmental policy and enforcement. The Brazilian Confederation of Agriculture and Livestock (CNA) and other sectoral associations maintain permanent lobbying offices in Brasília and actively engage in election campaigns through campaign donations and political support.

Critics have labeled the bancada ruralista the "bancada da devastação" (devastation caucus), accusing it of prioritizing short-term economic gains over environmental protection and social rights. Defenders of the caucus argue that it represents a vital economic sector and seeks to remove bureaucratic obstacles to agricultural production, which they consider essential for Brazil's economic development and global competitiveness.