💰Brazil's Agribusiness Faces Key Shifts: Tech Innovation, Climate Challenges, and Market Restructuring 🌱
#17 BAR Brief
Welcome to this week’s Brazil AgTech Report, providing key updates on Brazil's agrifood and climate tech ecosystems.
Brazil's agribusiness sector is evolving rapidly, with AI-driven supply chain tools, ag-tech investments, and financial restructuring shaping the landscape. Cargill, Case IH, and GoHobby are expanding automation and drone technology, while Bradesco's stake in Banco John Deere and Agroforte's acquisition of RúmiCash highlight increasing financial activity in the sector.
At the same time, climate resilience remains a major challenge, with Embrapa deploying radar for ag research, farmers facing extreme heat, and Brazil's orange crop hitting a 36-year low. Meanwhile, Danone's push for regenerative agriculture and a $1.5 billion carbon credit mandate for insurers underscores the growing importance of sustainability and carbon markets in agribusiness.
Despite logistical bottlenecks driving freight costs up 70%, experts signal that Brazil's agribusiness sector is in recovery, with new opportunities emerging for cover crop seeds, bovine cloning, and fertilizer market shifts.
In this week’s edition…
AgTech
🐄Cargill Partners with BinSentry For AI-Powered Feed Supply Tool🤖
🚜Case IH Combine Technology Targets Medium-Sized Producers 🌾
🌧️Embrapa Uses Radar to Beat Climate Obstacles in Ag Research 🛰️
🚜GoHobby Surpasses $13M in Ag Drone Sales 🚁
Climate
🌡️Technology Key to Help Farmers Adapt to Rising Temperatures 🚜
💰Insurers Required to Allocate $1.5 Billion to Carbon Credits 🌿
🐄Danone Aims for 30% Origination from Regen Farms in 2025 🌱
🚗After 5 Years, Brazil’s Fuel Carbon Market Struggles to Grow 🌿
M&A
🐄Agroforte Acquires RúmiCash to Expand Dairy Farm Credit 💰
🏭Nutrien Negotiates Sale of Its Five Fertilizer Plants in Brazil 🇧🇷
🤝Boa Safra Merges to Strengthen Cover Crop Seed Business 🌱
🏦Bradesco Acquires 50% of Banco John Deere in Brazil 🚜
Misc.
🐄Over 700 Bovine Clones Produced in Brazil
🍊Brazil's Orange Production Projected to Hit 36-Year Low 📉
🚛Freight Rates Surge Over 70% Due to Insufficient Logistics 📈
📈Brazil Agribusiness Recovery Underway, Experts Say 🌾
AgTech
🐄Cargill Partners with BinSentry For AI-Powered Feed Supply Tool🤖
Cargill, in partnership with ag-tech company BinSentry, has launched an Artificial Intelligence (AI)-powered sensor technology to enhance efficiency in Brazil’s animal feed supply chain, particularly benefiting pork and poultry producers. As part of the collaboration, Cargill has secured exclusive distribution rights for BinSentry’s feed inventory management platform in Brazil. BinSentry's technology integrates solar-powered, self-cleaning sensors that monitor feed levels in storage bins with 99% accuracy, eliminating manual inventory checks. The system provides real-time data through a mobile dashboard, allowing producers to track and optimize feed usage, prevent supply shortages, and reduce waste. read more
🚜Case IH Harvester Targets Medium-Sized Producers 🌾
Case IH has introduced the Axial-Flow Série 160 Automation combine harvester, produced in Brazil, bringing advanced automation technology to medium-sized farms. Previously available only in larger Class 6 machines, this innovation is now accessible in the Class 5 category, catering to producers managing areas between 200 and 500 hectares. This advancement enables these farmers to enhance operational efficiency, reduce losses, and increase profit margins. read more
🌧️Embrapa Uses Radar to Beat Climate Obstacles for Ag Research 🛰️
Brazil´s Agricultural research institute, Embrapa, has partnered with Brazilian startup New Space Tech to implement the use of satellites equipped with Synthetic Aperture Radar (SAR), a technology capable of "seeing" through clouds and fog. Unlike optical satellites, which rely on favorable weather conditions, SAR emits its own electromagnetic waves, allowing precise soil and vegetation monitoring even in adverse climate conditions, such as persistent cloud cover in coastal regions and high humidity in the Amazon. As part of this collaboration, a ground station will be built at Embrapa’s headquarters in Campinas (SP) to process, store, and distribute the collected data. read more
🚜GoHobby Surpasses $13M in Ag Drone Sales 🚁
GoHobby, one of Latin America's leading drone distributors, has reached over $26 million in revenue, with agriculture accounting for 50% of sales. The company expects this share to grow to 60% in 2025, driven by increased demand for drones in crop spraying and mapping. In 2024, an estimated 8,000 to 10,000 agricultural drones were sold in Brazil. Looking ahead, GoHobby plans to launch three new drone models in 2025 and invest in training programs to meet the growing need for qualified drone operators in agribusiness. read more
Climate
🌡️Technology Key to Help Farmers Adapt to Rising Temps 🚜
As climate change intensifies, Brazilian farmers are turning to technology and innovation to mitigate the effects of rising temperatures and erratic weather patterns. Brazilian meteorologist Fabio Marin stresses that high temperatures will persist due to increasing fossil fuel emissions, making climate-smart agriculture essential for future resilience. Advanced precision farming tools, AI-driven weather forecasting, drought-resistant crops, and regenerative agriculture practices are becoming critical for maintaining productivity. Coffee growers, for example, are already using satellite data and automated irrigation systems to combat extreme heat, as February temperatures (25.5°C) exceed historical norms (24.8°C), and low rainfall threatens the 2025/26 crop. read more
💰Insurers Required to Allocate $1.5 Billion to Carbon Credits 🌿
A recent Brazilian law establishing a regulated carbon market mandates that insurance, capitalization, and open private pension companies invest 0.5% of their technical reserves—estimated between USD 1.23 billion and USD 1.58 billion—in carbon credits or related funds. This directive aims to bolster the carbon credit market but has raised concerns within the insurance industry about potential precedents for future investment obligations. The exact base for this percentage will be determined during the regulation process, as discussions continue regarding the precise definition of applicable provisions. read more
🐄Danone Aims for 30% Origination from Regen Farms in 2025 🌱
French multinational Danone has set a goal to source 30% of its inputs from farms practicing regenerative livestock farming by the end of 2025. Currently, approximately 20% of the 500,000 liters of milk collected daily by Danone in Brazil—about 100,000 liters—are classified as low-carbon. To achieve this target, the company plans to invest an additional R$6 million in its Jornada Flora program, which supports 233 producers across 9,659 hectares in Minas Gerais. Since its inception in 2020, the program has led to a 142% increase in average milk productivity per hectare among participating farms. Moreover, these initiatives have resulted in a reduction of carbon emissions from 2.36 kg per liter of milk in 2020 to 1.21 kg by the end of 2024. read more
🚗After 5 Years, Brazil’s Fuel Carbon Market Struggles to Grow 🌿
Launched in 2017, RenovaBio aims to decarbonize Brazil’s energy matrix by promoting biofuels through the trade of Carbon Reduction Credits (CBIOs). However, after five years, the program faces major challenges, including default by fuel distributors and unpredictable CBIO prices. In response, Brazil passed Law No. 15.082/2024, introducing stricter penalties for non-compliance. Distributors failing to meet carbon reduction targets could face fines of up to R$500 million (approx. $87.5 million) and commercial restrictions. Experts argue that while these measures may reduce defaults, structural issues related to CBIO supply and demand imbalances still need to be addressed for the program to be truly effective. read more
M&A
🐄Agroforte Acquires RúmiCash to Expand Dairy Farm Credit 💰
Agroforte, a leading agri-fintech and part of The Yield Lab Latam portfolio, has acquired fellow agri-fintech RúmiCash to strengthen its position in the dairy farming finance space. The deal adds 50,000 pre-approved producers and partnerships with 40 agribusinesses like Lactalis, C.Vale, and Vigor. With a market valued at R$400 billion, Agroforte focuses on medium-term technology and infrastructure financing, while RúmiCash specializes in short-term input credit for dairy farmers. The acquisition enhances Agroforte’s low-default financing model, backed by a R$59 million structured credit fund (FIDC). read more
🏭Nutrien Negotiates Sale of Its Five Fertilizer Plants in Brazil 🇧🇷
Nutrien, a leading global fertilizer company, has initiated negotiations to sell its five fertilizer blending plants in Brazil. The facilities up for sale are located in Alfenas (MG), Araxá (MG), Cristalina (GO), Itapetininga (SP), and Morrinhos (GO). Nutrien aims to sell all five plants to a single buyer but remains open to individual offers. The company has invested approximately R$400 million in these facilities over recent years. Negotiations are being conducted with the assistance of M&A advisory firm Volt Partners, to finalize the sale within the first half of this year. read more
🤝Boa Safra Merges to Strengthen Cover Crop Seed Business 🌱
In a strategic move to enhance its position in the cover crop seed market, Boa Safra has announced a merger with SememBras and Sementes Nobre. This collaboration forms the new company SBS Green Seeds, with Boa Safra intially holding a 30% stake but with an option to acquire a controlling interest. The merger aims to capitalize on the burgeoning regenerative agriculture sector in Brazil, estimated to have a potential market size of R$6 billion, especially with the development of a mature Carbon Credits market. Currently, only 20% of summer crop areas utilize cover crops during the off-season, indicating significant growth opportunities. Boa Safra's CEO, Marino Colpo, emphasizes that adopting sustainable practices not only improves soil health but also enhances productivity in key crops like soybeans and corn. read more
🏦Bradesco Acquires 50% of Banco John Deere in Brazil 🚜
Bradesco has acquired a 50% stake in Banco John Deere S.A., the financial arm of John Deere Brasil S.A., a subsidiary of Deere & Company. The deal aims to expand financing for John Deere customers and dealers across Brazil, particularly in agriculture and construction. Despite the acquisition, Banco John Deere will retain its brand and operate independently. Alex Ferreira has been appointed as CEO of the joint venture. read more
Misc.
🐄Over 700 Bovine Clones Produced in Brazil 🔬
Since the birth of Vitória, the first cloned cow in 2001, Brazil has produced more than 700 bovine clones, according to Geneal, the only company currently holding a cloning patent in the country. Cloning is primarily utilized in genetic improvement programs, focusing on reproducing high-demand breeders or exceptional animals. The process involves creating genetically identical replicas to enhance desirable traits within herds. The cost of cloning an animal is approximately $20,000. The technologies aim to preserve and propagate superior genetics, contributing to the advancement of Brazilian livestock farming. Notable cases include the cloning of Viatina-19, a Nelore cow valued at $4 million, and Gandhi PO da Nova Índia, a bull that suffered a testicular injury, leading to the production of three clones to preserve its genetic lineage. read more
🍊Brazil's Orange Production Projected to Hit 36-Year Low 📉
The U.S. Department of Agriculture (USDA) forecasts that Brazil's orange production for the 2024/25 season will reach 12.3 million tons, equivalent to 300 million 40.8-kg boxes. If confirmed, this would mark the lowest output in 36 years. The local Fundecitrus estimate is even more conservative, projecting 9.5 million tons (232.38 million boxes), citing adverse weather conditions affecting tree development. These projections underscore the challenges faced by Brazil's citrus industry, including weather-related impacts and the need for adaptive strategies to sustain production levels. read more
🚛Freight Rates Surge Over 70% Due to Insufficient Logistics 📈
In early 2025, Brazil's soybean harvest faced significant delays due to prolonged rainfall, leading to a compressed harvest window. This situation, combined with a record soybean crop exceeding 170 million tons, has strained the country's logistics infrastructure. As a result, freight rates have surged by more than 70% on certain routes from Mato Grosso, the nation's largest grain-producing state. For instance, the cost to transport a ton of soybeans from Sorriso (MT) to Santos (SP) port increased from R$330-340 in January to approximately R$500, with projections reaching R$600 per ton by the end of February. Additionally, a recent R$0.22 per liter hike in diesel prices has further escalated transportation costs. read more
📈Brazil Agribusiness Recovery Underway, Experts Say 🌾
In 2024, Brazil's agribusiness sector faced significant challenges, including declining commodity prices and adverse weather conditions, leading to financial difficulties for companies and a 73% drop in Fiagro fund investments. However, industry expert Valora, asserts that the sector is now in a recovery phase highlighting the ongoing 2024-25 harvest, which is expected to set new records, signaling the end of the downturn. Similarly, consultancy firm Kijani, notes that operationally, the sector is experiencing strong productivity and favorable prices, resulting in profitability equal to or better than historical averages. read more
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. All views, opinions, and commentary expressed are strictly his own.
