Brazil’s Agricultural Growth: A Rising Agro-Power Fueled by Innovation and Trade

Brazil is on the fast track to becoming a dominant player in the global agricultural market, thanks to its free-market trade policies, significant investments, and groundbreaking innovations. The country’s agriculture is increasingly characterized by the adoption of biological crop inputs, artificial intelligence, sustainable farming practices, and advanced financial services.

In 2025, Brazil exported an impressive $169.2 billion worth of agricultural goods, marking a 3% increase from the previous year, as reported by the Ministry of Agriculture and Livestock. Key agricultural products driving this growth include soybeans, beef, and various others.

According to Francisco Jardim, co-founder and managing partner of SP Ventures, the success of Brazilian farming is not attributed to government intervention or land expropriation, but to remarkable productivity levels. Jardim shared these insights during the 2026 World Agri-Tech San Francisco event.

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“Last year, agriculture in Brazil grew by 11%, outpacing the overall GDP growth of 2.4 to 2.5%. This shows that without agriculture, the nation’s GDP growth would have been just 1.5%,” Jardim emphasized, highlighting the sector’s resilience and its role as a driving force in the Brazilian economy.

The agtech landscape in Brazil is rapidly evolving, with 2,075 start-ups operating across 468 municipalities last year. A remarkable 73% of these start-ups reported growth in key performance metrics, even amid the country’s high interest rates, as indicated in Radar Agtech’s 2025 report.

The Rise of Biologicals in Brazilian Agriculture

Biological methods in agriculture are progressively taking root in Brazil, emerging as a billion-dollar market with substantial growth potential, especially in the fungicide sector. Major growers like SLC Agricola and Amaggi are increasingly turning to biological products for their effectiveness and economic viability.

“The fungicide market alone is worth $5 billion, primarily dominated by chemical fungicides. However, new bio-fungicides developed by companies like Biotrop and Gênica are proving as effective as, if not more than, their chemical counterparts,” Jardim explained.

He noted, “This trend reflects what has occurred with bio-nematicides and bio-insecticides, where efficacy meets or exceeds that of traditional chemicals.”

Trade Shaping Brazil’s Agricultural Future

Brazil is also actively enhancing its agricultural trade landscape amidst a global trend of increasing protectionism. Recently, a trade agreement was signed between Brazil and other South American nations with the EU, forming one of the world’s largest free trade zones.

Despite opposition from France regarding potential impacts on its domestic farming sector, the deal is expected to go into provisional effect on May 1 while awaiting judicial review by a European court.

“The pushback we’ve seen, particularly from French and Irish farms, is rooted in protectionism rather than environmental concerns. Latin American farmers simply have a competitive edge,” Jardim asserted.

Although there are hurdles to overcome, the trade deal signifies mutual benefits, enabling European consumers access to high-quality, affordable agricultural goods while opening the EU market to South American products.

“The agreement is likely to pass, providing both parties unparalleled advantages and high-quality agricultural offerings at competitive prices,” Jardim stated enthusiastically.

Brazil Takes Charge of the Sustainability Narrative

Amidst the discussions surrounding the EU-Mercosur trade deal, some Brazilian stakeholders are resisting sustainability mandates. Notably, major commodity buyers from the Brazilian Association of Vegetable Oil Industries recently withdrew from the Soy Moratorium.

Originally established following a 2006 Greenpeace campaign, this moratorium was intended to ensure that soybeans sourced were not from deforested land. Brazil’s Forest Code mandates that farmers preserve between 20% to 80% of their land based on the region.

Brazilian farmers are striving to reclaim the narrative on sustainability by highlighting ongoing efforts to improve their agricultural practices. “Brazilians conserve nearly a third of our natural vegetation and adhere to one of the most stringent Forest Codes globally. We want to emphasize that we are leaders in sustainable and regenerative agriculture,” Jardim concluded.

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