Welcome to The Brazil AgTech Revolution (The BAR) — a weekly summary of key news and insights shaping Brazil's agrifood tech ecosystem.
In this week’s edition…
Brazil's Climate Tech Market Gains Momentum
Acumen Fund Commits $1.5 Billion to Climate-Focused AgTech
Banco BV Targets $16 Billion in ESG Agricultural Financing by 2030
Brazil Innovates Floating Covers for Sustainable Manure Management
Brazil's Bio Inputs Sector Grows 21%, Aiming for $45B by 2032
The Highs and Lows of Brazilian Agriculture
Lavoro Faces $144.9M Loss Amid Sector Turmoil
Brazil to Expand Agricultural Exports to China including DDG
IFFCO to Launch $100M Nanofertilizer Plant in Brazil
Livestock Growth to Balance Brazil's 2024 Agricultural Decline
One Partners Eyes Growth in Brazil's Seed Market
Agrícola Famosa Acquires El Abuelo to Rule European Melon Market
Oleoplan Buys Green Ventures, Boosts Biodiesel Capacity
Cracking the Code to Brazil's AgTech Market
Grão Direto to Double Growth, Enters Fintech Space
Nagro Boosts Financing for Brazilian Farmers
Sigria Seeks $500k to Expand Agtech Risk Platform
Brazil Climate Tech
Brazil's Climate Tech Market Heats Up
Ahead of next year’s COP30, Vinci Partners, a leading Brazilian asset management firm, is finalizing a R$2 billion ($400m) raise for its Vinci Climate Change Fund. Focused on renewable energy and sanitation infrastructure, the fund has attracted significant international investment, including contributions from the European Investment Bank (US$ 55M), Asian Infrastructure Investment Bank (US$ 50M), Allianz’s EMCAF (US$ 25M), and CAF (US$ 10M).
Classified under the EU's Article 9 SFDR for sustainable investments, the fund plans to allocate 50-70% of its capital to renewable energy and 30% to water and sanitation. Initial projects include solar plants with a 100 MW capacity and public-private partnerships in sanitation. Vinci aims to expand into decarbonization sectors like energy storage and sustainable fuels and explore opportunities across other Latin American markets.
Acumen Fund Commits $1.5 Billion to Climate-Focused AgTech
Acumen, a New York-based impact fund, plans to invest $1.5 billion by 2030 in climate-focused Agtech startups across developing regions, including Latin America, Africa, and Asia. The fund will allocate $300 million in direct investments and $1.2 billion in co-financing, supporting 100 startups with solutions such as biodigesters and solar dryers to help smallholder farmers adapt to climate change. With a history of $260 million invested in 215 companies since 2001, Acumen aims to address the disproportionate climate challenges faced by small-scale farmers while fostering sustainability and innovation.
Banco BV Targets R$80 Billion in ESG Agricultural Financing by 2030
Banco BV, part of Brazil’s Votorantim Group, is strengthening its position in agricultural financing through sustainable and technological initiatives, aiming for R$80 billion ($16b) in ESG-related operations by 2030. Recent efforts include financing R$2 million ($400k) for Solix agricultural robots via BNDES's Inovagro program and raising R$23 billion ($4.5b) in ESG operations in early 2024, with over half directed toward agriculture. The bank also launched an ESG consultancy service to support companies in structuring sustainable projects. Votorantim Group, traditionally focused on the building materials sector, has a strong footprint in agribusiness, including control of Citrosuco, a global leader in orange juice production.
Brazil Innovates Floating Covers for Sustainable Manure Management
Brazil’s agricultural research agency, Embrapa, along with SER Brasil, a private company specializing in the production of eco-friendly plastic wood, are collaborating to develop floating covers for swine manure ponds to reduce gas emissions, odors, and improve organic fertilizer quality. Made of interlocking plastic elements, the covers minimize harmful gases like ammonia and methane while retaining nutrients. Supported by industry associations, this initiative aims to enhance sustainability in manure management and is part of Embrapa's Inova innovation program.
Brazil's Bio Inputs Sector Grows 21%, Aiming for $45B by 2032
Brazil's bio inputs sector is expanding rapidly, growing 21% annually to reach R$5.1 billion in 2023/2024, far outpacing the global average of 13-14%. Covering 11% of crops, with high adoption in soybeans, corn, and sugarcane, its growth is hindered by regulatory gaps and intellectual property challenges. CropLife Brasil and FGV call for a dedicated framework to sustain innovation, address debates over "on-farm" production, and balance stricter oversight with reduced bureaucracy. Global demand is set to drive market value from $15 billion to $45 billion by 2032.
Brazil Agriculture
The Highs and Lows of Brazilian Agriculture
Brazilian agriculture is a high-stakes, capital-intensive industry. Poor soil quality necessitates heavy fertilizer use, while tropical climates and the absence of winter bring relentless pest and disease pressures, driving up the need for chemicals and other inputs. Adding to the challenge, Brazil’s high interest rates (a base rate of 10.75% annually, with commercial rates often double) and vast distances with inadequate logistics further inflate costs and complicate input delivery to farms.
In boom years, when crops are abundant, and prices are favorable, farmers often reinvest aggressively, sometimes doubling their planting areas in a single season. However, this expansion becomes problematic when prices drop, and costs outpace revenues. Over the past year, this dynamic has led to record levels of defaults. Despite these setbacks, it’s likely just a temporary pause. Many are ready and waiting to push forward, driving the next chapter of Brazil’s agricultural revolution.
Lavoro Faces $144.9M Loss Amid Sector Turmoil
Lavoro, Brazil's largest agricultural input distributor, reported a $144.9 million net loss for the 2023/24 season, impacted by falling commodity prices, adverse weather, and high interest rates. While revenue grew 5% to $1.88 billion, EBITDA dropped 64%, reflecting operational struggles and net debt rose to R$924.9 million, highlighting broader pressures on the agricultural retail sector. Brazil’s Ag retail sector was badly shaken this year by a number of high-profile Chapter 11 filings, including Lavoro’s main competitor, Agrogalaxy, which has R$4.1 billion ($800m) in debt and over 2,500 creditors.
Brazil to Expand Agricultural Exports to China including DDG
Brazil and China are set to announce new agricultural agreements following President Xi Jinping's visit this month. The deals will boost exports of Brazilian fruit, beef, and pork and update the list of approved meatpackers for the Chinese market.
Additionally, Brazil aims to export Distiller's Dried Grains (DDG) to China by 2025, leveraging surplus production from corn ethanol. With strong demand for DDG in animal feed and alcohol production, this move highlights Brazil's efforts to deepen trade ties with China and expand its agricultural market presence.
IFFCO to Launch $100M Nanofertilizer Plant in Brazil
The Indian Farmers Fertiliser Cooperative (IFFCO), the world’s largest cooperative with 55 million members, is partnering with Brazilian entrepreneur Fausto Caron to establish a nanofertilizer manufacturing plant in Brazil. With an investment of up to R$100 million, the facility will produce nano urea liquid, an innovative product designed to replace traditional urea fertilizers, improving crop yields while reducing environmental impact. Nanofert, Caron’s company, has already conducted successful field tests across 10,000 hectares in collaboration with Brazilian research institutions. The factory is set to begin operations next year, marking a significant step toward sustainable agricultural practices in Brazil.
Livestock Growth to Balance Brazil's 2024 Agricultural Decline
The Brazilian Confederation of Agriculture and Livestock (CNA) projects the Gross Value of Agricultural Production (VBP) for 2024 to reach R$1.29 trillion, a 1.9% decrease from 2023. While agriculture remains stable, the livestock sector is expected to grow by 6.6%, driven by favorable market conditions and increased demand for animal products. This growth is anticipated to offset the overall decline in the VBP, highlighting the livestock sector's crucial role in sustaining Brazil's agricultural economy. Additionally, Brazil's gross production value for agriculture is projected to reach $246.10 billion in 2024, with an annual growth rate of 8.37% through 2029.
Brazil Ag M&A
One Partners Eyes M&A Growth in Brazil's Seed Market
One Partners, a Sao Paulo-based investment firm specializing in agribusiness M&A, is focusing on opportunities in Brazil's seed market. With a history of facilitating major transactions for companies like Fertilizantes Heringer and Uisa, the firm is now assisting clients with expansion and financial restructuring. Amidst the ongoing consolidation in Brazil's agricultural sector, seed companies have become a prime target for divestment as retailers seek to bolster capital. Notable examples include AgroGalaxy’s "Sementes Campeã," currently on the market after AgroGalaxy’s bankruptcy.
Industry experts predict a 70% reduction in seed companies over the next decade due to continued consolidation. Despite challenges like falling grain prices, One Partners remains optimistic about a market rebound and is actively engaging with potential consolidators. Founded by Bernardo Parnes, One Partners also manages over R$2.5 billion in assets through its wealth management division.
Agrícola Famosa Acquires El Abuelo to Rule European Melon Market
Agrícola Famosa, Brazil's top fruit exporter, has acquired Spanish melon and watermelon producer El Abuelo to become the largest supplier of these fruits to the European market. The acquisition, pending regulatory approval, aims to ensure a year-round supply for European clients while both companies retain their brands and independent management. This move underscores Agrícola Famosa's strategy to strengthen its presence in Europe and expand its global distribution network.
Oleoplan Buys Green Ventures, Boosts Biodiesel Capacity
Fiagril, a Brazilian agriculture and trading company, has sold its biodiesel subsidiary, Green Ventures, to Oleoplan, a leading Brazilian biodiesel producer, to focus on distributing agricultural inputs and grain sourcing. Green Ventures operates a biodiesel plant in Lucas do Rio Verde, Mato Grosso. This acquisition strengthens Oleoplan's position in the biodiesel market, adding to its existing four plants and expanding its production capacity to 936 million liters annually. Founded 45 years ago, Oleoplan is a major player in the soybean supply chain and reported R$ 5.4 billion in revenue in 2023.
Brazil AgTechs
Cracking the Code to Brazil's AgTech Market
The secret to success for any startup is to provide a simple solution for an important problem that many people have. In agriculture this can sometimes be tricky as there are many problems, which is even more true in Brazil, and its sometimes not obvious which are the most critical.
Brazil’s agricultural sector has drawn over 1,500 agtech startups, but many fail because they ignore the most critical challenge: farmers' access to capital. Without capital, farmers cannot afford inputs, plant crops, produce yields, or adopt new technologies—making financial access the foundation for sustainable innovation in the agtech space.
Startups like TerraMagna and Agroforte tackle this challenge directly, achieving rapid growth and gaining insights into farmers' operations. This approach not only opens opportunities for scaling but also creates pathways for upselling advanced solutions.
Grão Direto to Double Growth, Enters Fintech Space
Grão Direto, a leading Brazilian Agtech specializing in digital grain trading, aims to double its transaction volume to 10 million tons in 2024, up from 5 million tons in 2023. With over 12,000 priced delivery points, the platform has attracted industry giants like Bayer, Cargill, and LDC. Expanding its offerings, Grão Direto now provides financial services, including a credit card with harvest-time payments, barter services, and receivables anticipation.
Nagro Boosts Financing for Brazilian Farmers
Nagro, one of Brazil's first Agrifintechs, in partnership with Oikos Capital, raised R$75 million ($15m) in its second offering to expand credit operations for small and medium-sized farmers. The fund uses AgRisk technology for risk analysis, ensuring efficient credit allocation. Since its first offering in 2023, which raised R$200 million, the fund has operated across 25 states, financing over 40 different crops.
Fiagros have become a significant financing tool in Brazil's agricultural sector, growing to R$40 billion in assets as of August 2024, thanks to tax incentives and regulatory flexibility. Their assets have quadrupled since 2022, complementing traditional financing methods like Agribusiness Credit Bills (LCAs).
Sigria Seeks R$ 2.5M to Expand Agtech Risk Platform
Sigria, an agtech startup in São Paulo, is seeking R$ 2.5 million to scale its risk analysis platform for agricultural creditors. The platform provides financial and climate risk assessments, deforestation monitoring, and production forecasts, aligning with EU rural credit directives. Launched in 2020, Sigria has analyzed over R$ 100 million in proposals and 50,000 hectares in collaboration with Asset Bank. With R$ 3 million already raised from investors like WBGI and Fapesp, the new funding round aims to expand its commercial operations and convert ongoing pilot projects into contracts.
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KFG
Kieran Finbar Gartlan is an Irish native with over 30 years of experience living and working in Brazil, primarily in the agricultural commodities space. He is Managing Partner at The Yield Lab Latam, a leading venture capital firm investing in early-stage agrifood tech startups. All views, opinions, and commentary expressed are strictly his own.