Brazil AgTech Report: Collateral Cattle, Biological Boom, Fungal Find, Fertilizer Future
#57 BAR Brief
Welcome to this week’s Brazil AgTech Report. Curated news from the frontline of Brazil’s Agrifood and Climate Tech ecosystem
Summary
In AgTech news this week, digital collateral moved forward as SiloReal and partners completed a multi million dollar credit operation backed by ear tagged cattle. TRAG expanded satellite based insurance across eight states, TIM detailed its plan to reach 26 million connected hectares, and the federal government launched an app to help producers meet EU traceability requirements for agricultural exports.
In Climate Tech developments, Embrapa introduced biodegradable sachets that improve fertilizer efficiency and reduce losses, while Brazil’s biological inputs sector gained momentum with rising adoption across major crops. Researchers at Embrapa also identified a promising compound from Trichoderma koningiopsis that may support the next generation of biological crop protection products.
In M&A and Funding, NTT Data acquired SPRO to strengthen its agricultural software offering, and Raça Agro expanded its network through the purchase of Agroline. The Canadian fund PSP Investments joined the shareholder group at Citrosuco, 3tentos advanced a major industrial expansion in Pará, and Jalles Machado secured a 40 million USD credit line from BNDES.
In broader market moves, Embrapa outlined a long term strategy to reduce fertilizer import dependence by 2050, a shift that aims to stabilise costs and strengthen domestic supply. Debate also intensified around the future of the Soy Moratorium, a voluntary agreement that restricts purchases of soy grown on newly deforested land in the Amazon.
🧭 Table of Contents
AgTech
Digital Ear Tags Back New Farm Credit Structure
TRAG Launches Satellite and AI Based Farm Insurance
TIM Targets 26 Million Hectares Connected by 2025
Brazil Launches App to Meet New EU Export Requirements
Climate Tech
Embrapa Develops Biodegradable Sachets to Reduce Fertilizer Losses
Brazil Strengthens Global Leadership in Biological Inputs
Embrapa Identifies New Substance for Next Generation Biologicals
M&A and Funding
NTT Data Acquires Brazilian ERP Provider SPRO
Raça Agro Acquires Livestock Input Retailer Agroline
Canadian Pension Fund PSP Invests in Citrosuco
3tentos Expands in Pará With New Acquisition
Jalles Secures 40 Million USD Credit Line From BNDES
Macro & Markets
Brazil Targets Major Reduction in Fertilizer Imports by 2050
Soy Moratorium Approaches Possible End After Two Decades
AgTech
Digital Ear Tags Back New Farm Credit Structure - A cattle producer in Rio Grande do Sul raised about 24 million USD through a rural credit note known in Brazil as a CPR, a financial instrument that allows farmers to obtain working capital in exchange for future product delivery. In this operation, digital ear tags were used as formal collateral for the first time. The model, led by SiloReal with Instabov, Belgo Arames and the FIDC Kanal, linked each of the 58 tracked animals directly to the credit note, improving transparency and reducing fraud risk. read more
TRAG Launches Satellite and AI Based Farm Insurance - TRAG, an insurtech from Franca in São Paulo state, created a new climate focused insurance product for farmers using satellite analytics and AI to assess crop performance and risk. The company has already issued policies protecting about 11 million USD in insured value and analysed 200 thousand hectares across eight states. The model aims to speed up underwriting, reduce disputes and expand access to insurance in a market where climate losses are rising and traditional evaluation still depends on manual field checks. read more
TIM Targets 26 Million Hectares Connected by 2025 - Telecom operator, TIM, plans to close 2025 with rural connectivity coverage reaching about 26 million hectares, according to its IoT and 5G director Alexandre Dal Forno. The company has expanded its dedicated agribusiness network to support machinery telemetry, sensors and farm management tools, although broadband availability remains uneven across Brazil. TIM reports strong uptake in grain, sugarcane and livestock regions and continues to build partnerships with equipment makers and cooperatives. read more
Brazil Launches App to Meet New EU Export Requirements - The federal government released a mobile app, called Agro Brasil + Sustentavel, to help producers comply with the European Union Deforestation Regulation (EUDR), which demands traceability of all agricultural products entering the bloc by 2027 (following recent delays). The tool allows farmers to register properties, upload documents, map boundaries and generate the geo location data required for export certification. The initiative aims to reduce bureaucracy and support small and medium producers that lack digital systems. The app integrates with existing national databases and will be updated as the regulation enters full effect. read more
Climate Tech
Embrapa Develops Biodegradable Sachets to Reduce Fertilizer Losses – Embrapa researchers created a biodegradable polymer sachet that controls the release of fertilizer in the soil and reduces both economic loss and environmental contamination. Traditional fertilizer can volatilize or leach before plants absorb the nutrients, but the new formulation slows the process and increases efficiency. Early field tests showed lower runoff, more consistent nutrient uptake and potential reduction in application frequency. read more
Brazil Strengthens Global Leadership in Biological Inputs – Brazil is consolidating its position as a global leader in biological inputs, driven by rising pest pressure, resistance to chemicals and high fertilizer costs. Expansion is expected to accelerate through 2035 as farmers adopt more biocontrol and biofertilizer solutions to improve efficiency and reduce environmental impact. The market benefits from strong domestic research capacity and a wave of companies scaling production. Demand is highest in soy, corn and sugarcane regions where biologicals help maintain yields under climate stress. read more
Embrapa Identifies New Substance for Next Generation Biologicals – Embrapa researchers identified a new compound produced by the fungus Trichoderma koningiopsis with strong potential for use in biological products for crop protection. The substance showed activity against major plant pathogens and may enhance the effectiveness of existing biological control agents. Researchers used metabolomic and genomic tools to characterise the molecule and understand its mode of action, opening pathways for industrial development. read more
M&A and Funding
NTT Data Acquires Brazilian ERP Provider SPRO – NTT Data, a technology group valued at about 32 billion USD, acquired SPRO, a leading Brazilian provider of farm focused ERP systems. The deal strengthens the Japanese company’s presence in Brazil and supports its plan to expand agricultural solutions across Latin America. SPRO delivers enterprise tools that integrate field operations, inputs, logistics and compliance, and has become a key partner for major agribusiness clients. read more
Raça Agro Acquires Livestock Input Retailer Agroline – Raça Agro announced the acquisition of Agroline, a retailer of animal nutrition and veterinary inputs with units in 17 cities across the Central West and Northern regions. The deal strengthens Raça Agro’s distribution footprint and expands its presence to 32 locations, supporting its strategy to grow in the livestock segment. Agroline brings a diversified portfolio of supplements, minerals and animal health products that serve cattle, sheep and goat producers. read more
Canadian Pension Fund PSP Invests in Citrosuco – The Canadian public pension fund PSP Investments became a shareholder in Citrosuco, one of the world’s largest orange juice producers. The entry of PSP creates a three partner structure alongside Votorantim and Fischer, which previously held the business jointly. Citrosuco manages extensive citrus operations in Brazil and a global logistics network that serves the concentrated juice and NFC markets. PSP’s investment signals long term confidence in the sector despite disease pressure, rising production costs and supply volatility. read more
3tentos Expands in Pará With New Acquisition – Brazilian agribusiness company, 3tentos, has acquired an industrial plant in Pará state and announced plans to reach about 10 billion USD in revenue by 2032. The purchase anchors a project of roughly 220 million USD to produce corn ethanol and DDG in the region while opening new fronts for inputs, origination and logistics. The company aims to replicate its integrated model from the South and Midwest as it enters Brazil's Northern arc. read more
Jalles Secures 40 Million USD Credit Line From BNDES – Jalles received about 40 million USD through a special BNDES program created for companies affected by United States tariffs during the Trump administration. The financing offers short term relief after reduced exports and lower margins from organic sugar production. The company also faces lower cane yields, a smaller crush and rising costs. According to BNDES, the line supports firms that lost access to the United States market and need liquidity to maintain operations and investments. read more
Macro & Markets
Brazil Targets Major Reduction in Fertilizer Imports by 2050 – Brazil plans to cut fertilizer imports to 50 percent of domestic demand, estimated at 77 million tons, by 2050, according to Embrapa. Today about 90 percent of the fertilizers used in the country come from external sources, which exposes producers to high price volatility and geopolitical risk. The long term strategy includes expanding national production of nitrogen, phosphate and potassium, scaling technologies for more efficient nutrient use and promoting biological alternatives. read more
Soy Moratorium Approaches Possible End After Two Decades – After nearly twenty years, the Soy Moratorium, a voluntary agreement that prohibits traders from buying soy grown on deforested land after July 2008 in the Amazon, is moving toward a possible phase out. Companies argue that overlapping rules and monitoring systems have reduced the pact’s relevance, while compliance costs have increased. Environmental groups warn that ending the moratorium could weaken safeguards at a sensitive moment for the Amazon. read more
That’s all for this week, thanks for reading,
KFG
Kieran Finbar Gartlan is an Irish native with over 30 years of experience living and working in Brazil. He is Managing Partner at The Yield Lab Latam, a leading venture capital firm investing in Agrifood and Climate Tech startups across Latin America.