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Brazil looks to expand agricultural export opportunities

Agricultural trade agreements could contribute to sustainable food production in Brazil, according to politicians and key stakeholders from the Brazilian agricultural industry.

In September 2024, Brazilian leaders attended the International Agricultural Forum (FIAP) in Brazil. The event, which took place before the G20 Agro Working Group meeting, sought to focus on key agribusiness issues. It aimed to highlight and discuss these ahead of the G20 summit, which was held in November in Sao Paulo.

Agriculture minister Carlos Fávaro and the governors of significant agricultural states such as Mato Grosso, Mato Grosso do Sul and Pará attended the FIAP to discuss how the Latin American market can strive to ensure global food security. Attendees from the international agribusiness community, including public and private initiatives, sector entities, and producers, attended the event to discuss sustainability, technology and the future of the Brazilian agricultural sector.

Achieving sustainable growth

Brazil is known for its agricultural trade and is a leading exporter of various crops, including coffee, soybeans, sugarcane, beef and poultry. In 2023, the total value share that the agriculture, forestry and fishing sectors add to the country's Gross Domestic Product (GDP) was 6.24%, an increase of 8.67% compared to the previous year, Statista said.

Yet, while agriculture makes up a small percentage of Brazil's GDP, small-scale agriculture makes up more than 77% of agricultural production and employs three-quarters of farming’s labour force. Within the vital agricultural landscape, however, exists considerable poverty. In 2021, 62.5 million people, almost a third of Brazil's population (29.4%), lived in poverty, and about one in five could not afford a healthy diet.

Investments in rural developments are highlighted as a priority focus, specifically in the northeast semi-arid region. Through these initiatives to advance the sector, financial institution The International Fund for Agricultural Development (IFAD) aims to increase family farmers' production and income, especially supporting marginalised groups, such as Indigenous and Afro-descendant communities, women and youth.

Efforts revolve around providing financial support and resources in organic and agroecological production methods, improving access to markets, bolstering farmers' organisations, developing water collection and conservation technologies, producing planning methodologies and having policy dialogue with national counterparts.

Building on exports

At the FIAP event, several core opportunities for Brazil to expand its domestic reputation and work towards sustainable development were announced. The minister of agriculture, Carlos Fávaro, confirmed that the LATAM market would reopen its beef exports to Canada. The country's agribusiness would also create new market opportunities for Brazilian Dried Distillers Grains (DDG) in Morocco and Colombia, highlighting its actions to expand Brazilian brands' presence.

Amid calls to reduce agricultural production, Fávaro firmly opposed this idea, the FIAP said. Instead, the minister advocated for Brazil's approach to focus on elevating sustainable food production in specific areas within the country. "We will increase production in a sustainable way," Fávaro said. “Brazil's strategy is to intensify production in degraded areas.”

Tackling obstacles across regions

The governor of Mato Grosso, Mauro Mendes, detailed three core challenges affecting Brazil's agriculture business that need to be addressed. According to Mendes, illegal deforestation, producing an effective agricultural insurance system to address climate change, and bolstering Brazil's response to global demands are at the top of the agenda. "We need to firmly hold the world accountable to the commitments made at every COP," Mendes stated.

Pará, a state in Brazil, retains 75% of its territory as native forest. Guarding against deforestation in the name of food production, its governor, Helder Barbalho, said there was a considerable need for financial and legal action. Specifying the importance of bioeconomy investments and urgent regulations within the carbon market, Barbalho said their presence would enable local communities to obtain an income from agriculture and forest conservation. "We must strike a balance between economic, environmental and social sustainability," he said.

Eduardo Riedel, governor of Mato Grosso do Sul, emphasised the need to reduce trade and environmental barriers at FIAP. He said adopting a solid position at the upcoming G20 summit was essential to address these issues. "If we've shown we can produce sustainably, we need to assert ourselves," said Riedel. We can't overlook critical issues like traceability and the EU's zero-deforestation requirements."

The need for global collaboration in combating climate change, generating better access to agricultural technologies for small and medium producers and the role of G20 Agro in ensuring global food security through international cooperation were other areas within the agri-food sector that industry stakeholders brought to the table.