Brazil’s agriculture sector has undergone a remarkable transformation over the past four decades, evolving from a net importer to a notable net exporter of agricultural products. Antonio Cabrera, former Brazilian Minister of Agriculture, highlighted this incredible journey during a presentation at Aprosoja’s headquarters in Cuiabá, Mato Grosso, on February 2.

Historically characterized by a closed economy, Brazil began opening its export markets for agricultural goods in the 1990s. This shift was largely influenced by public concerns regarding the importation of contaminated agricultural products from Europe, as Cabrera pointed out.

While expanding its markets, Brazil encountered tariffs imposed by other countries on key exports like soybeans and beef. The EU-Mercosur trade agreement is anticipated to alleviate some of these tariff barriers, although uncertainties regarding its implementation, particularly in terms of sustainability reporting, remain.

As a result of these market openings, Brazil’s grain production skyrocketed from 58 million tons to approximately 360 million tons today. The state of Mato Grosso, for instance, ranks as the third-largest soybean-producing region in the world, with projections estimating a yield of 47.18 million tons for the 2025/2026 harvest, a slight dip from the previous year’s 50.89 million tons, according to IMEA data.

Cabrera remarked, “The revolution of soybean in Brazil is also reflected in the poultry and beef sectors.” Mato Grosso stands as Brazil’s largest cattle producer, contributing to 13.8% of the nation’s total cattle production and 2.7% of the world’s supply, based on data from Indea, IBGE, and the USDA.

This impressive growth in Brazil’s agriculture sector can largely be attributed to the adoption of innovative technologies, including biological products, that enable food producers to optimize resources. An astonishing 55% of Brazilian farmers are utilizing biologicals, a stark contrast to just 6% of growers in the United States, as highlighted by a 2022 McKinsey survey of over 5,000 farmers.

Cabrera emphasized, “Behind every kilo of animal or vegetable protein produced here in Brazil, there’s a wealth of technology at work.”

Infrastructure Challenges: A Roadblock for Growth?

Despite its agricultural advancements, Brazil continues to face enduring infrastructure challenges that impede the transportation of agricultural goods. According to the National Association of Railway Carriers, Brazil has approximately 30,000 km of railway compared to 293,000 km in the United States. The situation is particularly dire in Mato Grosso, which has only 200 km of railway extending from the southern part of the state to its center.

To address these limitations, Brazil’s agriculture sector is lobbying for an expansion of railway networks alongside existing roads to enhance grain transportation within Mato Grosso. However, this proposal faces pushback from non-governmental organizations and is pending a final ruling from the country’s Supreme Court.

In a bid to improve its transport infrastructure, Rumo S.A. has secured $410 million for the initial phase of the Mato Grosso Railway project, which aims to lay down 743 kilometers of new tracks connecting Lucas do Rio Verde to Rondonópolis.