With 75 million hectares of its lands dedicated to agriculture production and 8.8 % of arable areas in the territory (IBGE, 2017), Brazil is naturally suited to large agricultural production in different crops, such as sugarcane, soybean, corn, dairy, coffee and fruits. The country is currently the 3rd biggest agricultural producer and a major player in livestock subsector, with the second largest production of beef and chicken worldwide.
Despite the economic recession in 2015-16 and slight recovery in 2017, Brazilian agribusiness’ GDP grew 13 % last year (IBGE, 2018), beating national record in the volume of crops while thriving through innovation. The Brazilian Ministry of Agriculture (MAPA) acknowledges that 67 % of the agriculture properties already use some sort of high precision technology (MAPA, 2017). By investing in R&D, Internet of Things, Big Data and Biotechnology, this key economic sector is revolutionizing from beginning to the end of its production line.
According to the Brazilian Enterprise for Agricultural Research (Embrapa), Brazil is already ahead when it comes to Agribusiness 4.0 trend, especially by incorporating new processes. As reported by McKinsey Consultancy, the digital era will generate approximately BRL 24 million from the Brazilian fields. Added improvements also include precision practices and processes, a wide usage of sophisticated climate changes and prediction sensors, and the incorporation of biological resources and renewable processes. Such technologies are in place at the country’s most innovative players within the agribusiness sector, according to Valor Econômico’s Innovation Rank 2017: Algar Agro, Adama Brasil, Syngenta, Monsanto / Climate Corp and Coopercitrus. However, there is still a lot of room for growth: according to the Strategy&PwC Innovation Rank, only 38 % of the interviewed agro-companies implemented the data processing to their technologies.
Looking in depth to the sector’s transformation, many of the new technologies expected to optimize the Brazilian agriculture are also key assets of the Swiss innovation ecosystem, including big data, robotics and the usage of drones.
How you can benefit from these opportunities
Swiss SMEs and startups interested in harvesting opportunities in the 4.0 era of Brazilian Agribusiness can visit the 25th edition of Agrishow, the International Trade Fair of Agricultural Technology happening in Ribeirão Preto, SP, from April 30th to May 4th 2018. It is the third largest agricultural technology fair in the world, and the most important in Latin America, with 440.000 sqm, more than 150.000 visitors and around 800 brands presenting their innovations in machinery, implements, irrigation systems, accessories, spare parts, among other products necessary to increase the farmer´s crop productivity, reduce costs and improve profitability of agribusiness.
If you would like to participate at the Trade Fair or just evaluate the opportunities related to the Brazilian Agribusiness without any further obligations, please get in touch with our S-GE Consultant for South America Fabio Speciale. Contact