Argentine and Brazil agribusiness have an “ecological surplus”
Economist Nicolás Torre, from the IERAL Institute of the Mediterranean Foundation, published an extensive thread on the social network Twitter, highlighting that both Argentina and Brazil have a positive “ecological footprint”. That is, they have more natural resources available than those they consume annually to survive. Torre’s report came in response to accusations against South America in recent weeks. First by The President of France, Emmanuel Macron, when he said that Brazil does not…
The future of food in South America
The future of food in South America is uncertain because high-quality food will be grown anywhere in the world with the lowest input cost. The leadership of agriculture and food exports in South America is an achievement of generations and now yields its best harvest. This continent has a most conducive climate for producing high-quality food, as well as exceptional soils, thanks to the volcanic ash of the Andes, accumulated over millennia. All these factors, coupled with hard work, the application of research…
The Fiagro and new opportunities for investment in Brazilian agribusiness
The government’s aim with Fiagro is mainly to relieve public coffers of the pressure from subsidizing interest rates for agriculture production by encouraging private investors Enacted on March 29, 2021, Federal Law 14.130 creates a new type of investment fund in Brazil, dedicated to investments in the agribusiness production chain. The new legislation is quite flexible in terms of the asset classes in which an agribusiness investment fund, or Fiagro, can invest. The government’s aim with Fiagro is mainly…
Restrictions on the ownership of Brazilian rural real estate property by foreigners
Historical background Since 1971, the acquisition of rural estate properties by foreigners in Brazil is ruled by Federal Law No 5.709/71, and its regulatory Decree No 74.965/74 (‘Law 5.709’).According to such legislation, the acquisition of rural property by a foreign individual domiciled in the country (‘foreign individual’) and a foreign company authorised to act in Brazil (‘branch’) is not prohibited but merely limited to certain caps described in the law. The restrictions also applied to Brazilian…
Buying farmland in Paraguay, Uruguay and Brazil: an investment with upside growth potential
Land prices have declined in the past few years in these countries, along with the current strength of the US dollar, it makes a strong case for investing now in farmlands Latin American’s Mercosur region. The countries in the Mercosur include Uruguay, Argentina, Venezuela (suspended), Paraguay, and Brazil. Farmland has a history of preserving capital in times of economic downturns. The durability and negative correlation of farmland returns to economic cycles are driven by the consistent requirement of a…
Are agricultural investment funds a bottomless basket?
Financially, we all remember the date: September 2008. The Sub-prime crisis and everything that’s happened in these 10 years. Global rates fell, the profitability of many businesses went down and various businesses ‘too big to fail‘ finally did also fall. But there was a common denominator in a particular sector. Where there were real assets such, as agricultural land, the financial damage was lower. On the other hand, the dilemma of world food supply continues. By 2050 the population will…
Brazil set to overtake the US as the world’s largest soybean producer
American farmers hit by US-China trade conflict and extreme weather Brazil is racing ahead of the US as the world’s largest soybean producer, as a trade war and extreme weather take a toll on American agriculture. The Latin American country’s newly planted crop is likely to yield 121.1m tonnes of soybeans in early 2020, agricultural agency Conab said on Tuesday. That is 25 per cent more than the just-harvested US crop of 96.6m tonnes. “This is the first time ever, it appears, that we will have a smaller…
Brazil investigates agribusiness bribes to judges for favourable land rulings
Listed by Brazil’s National Institute of Colonization and Agrarian Reform (INCRA) as one of the largest cases of land grabbing in Brazil, the Condomínio Cachoeira do Estrondo Agribusiness venture occupies a total area of more than 444,000 hectares (1 million acres) in western Bahia state — an area larger than the U.S. state of Rhode Island. Estrondo has a long history of conflict with traditional communities, has been fined by Brazil’s environmental protection agency for illegal deforestation, and…
Brazil celebrates: 0.6% expansion in the third quarter: rebound of agriculture and industry
Brazil’s economy expanded in the third quarter at its fastest pace since early last year, official data showed on Tuesday, with 0.6% growth over the previous quarter driven by a strong performance in agriculture and a sharp rebound in the industry. Upward revisions to previous figures for the first two quarters this year meant that the economy no longer contracted in the January-March period, and so steered clearer of recession than had previously been thought. Latin America’s largest economy expanded…
Brazil grows as an agricultural powerhouse
A good relationship by farmers with the new government of Jair Bolsonaro which focuses on business plus a strong commitment to the incorporation of technology to improve agricultural results should make for a happy relationship. These factors point to what is happening today in Brazilian agriculture and could be felt in all its influence during Agrishow, a sample of its agricultural machinery options are this last week in Ribeirao Preto, which is located just 300 kilometres from San Pablo. A distance where…
Digital Farming: Potential Market and Adoption in Brazil
The global Digital Farming market was estimated to be valued at $5 billion in 2018 by Markets and Markets. Within this landscape, Brazil has the potential to become not only one of the largest food producers, but one of the largest markets for digital farming, according to Céleres, which estimates the value of the country’s digital farming market last year at more than R$1 billion (US$251.3 million), with a CAGR of 12 percent per year until 2025. Amid the need to increase food production by 70 percent…
Brazil already has its first online store selling agricultural inputs
This year 2019 started the first year of operation of InstaAgro – first online store authorized to sell agricultural inputs via this medium in Brazil. It is a new startup of the AgTech segment, with Brazilian origin and North American and European capital. Through its innovative business model and state-of-the-art technology, InstaAgro is an online store that markets inputs and agricultural implements directly to the Brazilian rural producer and is already authorized by the regulatory agencies in…
Brazil agribusiness group seeks bankruptcy protection
Privately owned Brazilian agribusiness group Itaquere has filed for bankruptcy protection to restructure 482 million reais ($127 million) of debt, according to a letter from management seen by Reuters. In the letter dated March 21, the group, based in Brazil’s top grains state Mato Grosso, blames a prolonged economic crisis, along with adverse climate conditions and currency swings, for its financial woes. The letter was signed by the group but not by any particular executive. Itaquere and MLuz, named in…
Brazilian Farmland – Is it a buy?
In recent years, Brazil has solidified its role as a global agricultural powerhouse. It has become the world’s largest exporter of soybeans, coffee, and sugar, as well as the second largest overall food producer on the planet. Over the past 15 years, Brazil has increased agricultural production by 156 percent with overall Gross Domestic Product (GDP) from agriculture reaching an all-time high in the first quarter of 2017.1 The agricultural sector as a whole accounts for nearly 6 percent of Brazil’s total…
Brazilian farmers in Mato Grosso satisfied with the soybean planting progress
Brazil’s Mato Grosso farmers are happy about their soybean planting progress this year, as they have finished sowing almost 90% of their soybean acres and are expecting an early harvest at the end of December. “The weather is so good this year, as rain comes to the state early and keeps going on almost every day,” said Daniel Latorraca Ferreira, director of the Institute of Economics and Agricultural Mato Grosso, (IMAE). “This good weather will help the crop development, and we will be able to start…
