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Guilherme Nastari

Agricultural Economist at Datagro

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Brazilian agribusiness is experiencing a very special moment of recognition in the country and in the international community. The operating model for agro-industrial assets developed by Brazil has become a great example for several important regions around the world.

Food security and the generation of renewable energy are increasingly relevant issues, especially in a context of geopolitical conflicts, as is the case in Eastern Europe and Gaza, which raise fears of food and energy shortages.

In this scenario, Brazilian agribusiness is consolidating itself as a viable, stable and competitive option for supplying food and clean energy, always in line with the decarbonization goals of international treaties, such as the Paris Agreement.

It is important to highlight that, in the middle of the last century, Brazilian agriculture was rudimentary and, until the 1980s, the country was a large importer of food. However, the seed of self-sufficiency was planted in the 1970s, when the Brazilian Agricultural Research Corporation emerged.

Since then, the development of tropical agriculture has enabled agro-industrial expansion in the Central-West, with the emergence of a new model of operation and management of farms in regions that were previously not so developed. Brazilian agribusiness becomes one of the largest and most efficient in the world.

Far beyond agricultural goods, Brazil also exports technology and know-how. The Brazilian production model for clean energy, such as ethanol and biodiesel, has become a reference in several regions around the world.

India and Indonesia have announced, in recent years, important programs to revitalize the food production and renewable energy sectors based on the Brazilian experience.

In the case of India, specifically, a country that has the third largest fleet of cars in the world and a population of more than 1.4 billion people, ethanol appears to be the most viable alternative for mitigating Greenhouse Gases, and also the main driver for the start of the energy transition locally. As an important global producer of sugar cane, India aims to increase the mixture of biofuel with gasoline from 10% to 20% by 2025, throughout its territory, 15 Indian cities have already adopted E20.

For food production, Brazil leads exports of soybeans, corn, sugar, coffee, beef and chicken, and orange juice. Other goods in which we stand out are pork, ethanol, cotton, and fruits, in which Brazil positions itself as the second or third producer, or exporter. This protagonism is even more impressive and revealing when we take into consideration that Brazilian agribusiness preserves the greatest biodiversity in the world, with more than 66% of the native vegetation in the national territory preserved, according to a NASA survey.

Production is mainly concentrated in the Center-South region of the country, far from the Amazon biome. The area dedicated to environmental preservation on rural properties is equivalent to more than 33% of the national territory, according to data from Embrapa.

Brazil's views on its main economic activity have changed a lot in recent years. Increasingly, residents of large urban centers have recognized the importance of the countryside for the country's economy.

In 2023, according to data from the National Confederation of Agriculture and Livestock of Brazil, the Gross Domestic Product of Brazilian agribusiness could represent 24.4% of the country's total Gross Domestic Product, or around 2.63 trillion reais.

The challenges are great, but the prospects are excellent. With the exponential increase in productivity and the development of technologies that accelerate the path to the energy transition, Brazilian agribusiness has all the prerequisites to remain the most efficient and most relevant in the world.