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Record Brazilian soybean supply set to pressure competition in 2022

Record acreage leads to unprecedented output Brazilian beans price competitive as real weakens Brazil to remain world’s top supplier on robust China demand B10 mandate unlikely to dampen crush momentum The Brazilian soybean sector is forecast to produce record-breaking volume in the crop year 2021-22 (September-August), likely pressuring major rivals the US and Argentina. The National Supply Company, or Conab, and the US Department of Agriculture expect Brazil’s soybean production at 142.8 million…

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…

Global crop supply fears send soybeans prices to the highest in six years

Soybeans traded at the highest level in more than six years as increasing demand from top importer China and dry weather in the major producing areas of South America spur growing concerns over global supplies. Prices have climbed more than 40 percent since March after China started snapping up cargoes to feed a massive increase in hog numbers as the country recovers from African swine fever. Now the development of southern hemisphere crops in Brazil and Argentina has been threatened for weeks by lack…

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…

Brazilian agribusiness still drawing investor interest

Brazilian agribusiness has investors interested The slump in commodity prices and the weaker real are attracting foreign funds interested in Brazilian agribusiness. International players want to place bets despite the political crisis, which some investors actually see as an even more fertile ground for deals. The opportunities sought by US funds like Amerra Capital Management and Proterra, and by Brazilian funds such as Pátria, range from land deals to stakes in high added-value companies in animal health…

Should you invest in Brazil?

I’ve just spent a very pleasant fortnight in Brazil. It’s a wonderful country. But should we be investing there? The first thing that struck me about Brazil its sheer abundance. It’s the fifth-biggest country in the world. It has 20% of the world’s freshwater supply and just 3% of its population. (China has over 20% of the world’s population and about 6% of its freshwater). It has the highest number of species of primates, amphibians and plants in the world and the most diverse…
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