Solinftec's Robot Growth, Bacon and Beans, Biofuel Boom, Cargill Buys SJC, ADM to exit Pets, Credit Crunch
#16 BAR Brief
Welcome to this week’s BAR Brief, providing key updates on Brazil's agrifood and climate tech ecosystems.
AgriFood Tech
💰Solinftec Sees $78M Revenue in 2025 Amid Robot Sales Growth🚜
🚜Brazilian Agribusiness CEOs Embrace Innovation, AI 🌱
🧬Bacon and Beans: Startup Develops Soybean with Pig DNA 🌱
Climate Tech
🐄JBS Donates 3 Million Tags for Livestock Tracking in Pará 📋
🌿Brazil's Competitive Edge in Biofuels To Gain Momentum 🇧🇷
🌿Brazil’s Renewable Fuel Carbon Market Ahead of Target 🇧🇷
M&A
🤝Cargill Assumes Full Control of SJC Bioenergia 🌱
🌾Cooxupé Takes Majority Stake in Agrobom🤝
🐾ADM Seeks Buyer for Brazilian Pet Food Division 🇧🇷
Misc.
📉Lavoro to Close 70 Stores Amid Credit Crunch🏪
🌾Consultancy Sees Increase in Agribusiness Bankruptcies in 2025 📉
🏗️ Global Giant Invests $2.5 Billion in Brazil's Largest Potassium Mine 🇧🇷
🌎Brazil Poised to Become the World's Most Reliable Ag Exporter 📈
AgTech
💰Solinftec Sees $78M Revenue in 2025 Amid Robot Sales Growth🚜
Solinftec, one of Brazil´s leading Agtech companies, is on track for major revenue growth this year, projecting $78 million, up from $64 million in 2024. One of its key innovations is Solix, an autonomous robot designed for crop monitoring and precise herbicide application. In 2024, Solinftec had 50 Solix Sprayer Robots in commercial use across farms in Indiana and Illinois, and plans to add an extra 100 units this year. These robots monitored over 65 million plants, achieving up to a 98% reduction in herbicide usage and a 10% increase in potential crop yields. The company has already secured $225 million in investments since 2016 and is now setting its sights on international capital markets for further expansion. 🌱 read more
🚜Brazilian Agribusiness CEOs Embrace Innovation, AI 🌱
A recent survey by PwC reveals that leaders in Brazil's agribusiness sector are increasingly recognizing the need for innovation and collaboration to ensure the sustainability and viability of their enterprises. Another major shift in the sector is the rapid adoption of artificial intelligence as 86% of agribusiness CEOs plan to integrate generative AI into their technological platforms in the near future. Strategic partnerships have become a key focus, with 44% of Brazilian agribusiness CEOs establishing collaborations with other organizations in recent years, surpassing the national average of 33%. Climate change has emerged as the primary concern for 56% of agribusiness leaders, a figure significantly higher than both national (21%) and global (14%) averages. The increasing climate-related risks are pushing companies to invest in sustainable practices and technologies, which is good news for the agtech startup industry. 🌱 read more
🧬Bacon and Beans: Startup Develops Soybean with Pig DNA 🌱
This is not Brazil-related, but I included it anyway for its novelty factor. Moolec Science, a Luxembourg-based biotech startup, has developed "Piggy Sooy", a genetically modified soybean containing pig DNA. Using its patented Molecular Farming technology, the company engineered soybeans to express high levels of porcine protein, aiming to enhance nutritional value for both human consumption and animal feed. This innovation represents a major step in synthetic biology, where plants are designed as biofactories for protein production. While the development holds promise for sustainable food alternatives, it may raise ethical and regulatory questions regarding genetic engineering and food safety. 🌱read more
Climate Tech
🐄JBS Donates 3 Million Tags for Livestock Tracking in Pará 📋
During the World Economic Forum in Davos, JBS announced the donation of 3 million tags to monitor cattle and buffalo herds in the northern state of Pará. This initiative supports a local government project aiming to track all livestock by 2026, enhancing transparency and control in the livestock sector. Of the donated tags, 2 million will be allocated to small producers, with The Nature Conservancy (TNC) and JBS each providing half. Additionally, the "JBS Accelerator" program will contribute 1 million tags and offer support to indirect suppliers. 🌱read more
🌿Brazil's Competitive Edge in Biofuels To Gain Momentum 🇧🇷
At the EXAME Renewable Fuels event in São Paulo last week, Arnaldo Jardim, President of the Special Commission on Energy Transition and Green Hydrogen Production, emphasized Brazil's competitive advantage in renewable energy. He advocated for a pact leading up to COP30 to solidify the country's role in accelerating renewable adoption. The discussion also highlighted the potential of biomethane and biogas in Brazil's energy landscape and for the country’s Future Fuel Law to drive new investments by creating demand linked to the carbon lifecycle. Brazil's expertise in ethanol production and technological advancements in biofuels over recent decades position the country favorably for energy transition but there is still a need for regulatory frameworks to attract more investors to the space. 🌱read more
🌿Brazil’s Renewable Fuel Carbon Market Ahead of Target 🇧🇷
Since 2019, Brazil has operated a mini carbon market under the RenovaBio program, focused on reducing emissions in the fuel sector. At its core are CBIOs, a type of carbon credit, that biofuel producers generate, each representing one ton of CO₂ prevented by replacing fossil fuels with renewables. Fuel distributors are required to buy a set number of CBIOs annually, creating a financial incentive for biofuel adoption. Established in 2017 under the Paris Agreement goals, RenovaBio aimed to increase biofuels' share to 18% of Brazil’s energy mix by 2030. However, the country has already surpassed this target, with biofuels now accounting for 22% of transportation energy consumption and 33% of total energy supply. While CBIOs function similarly to carbon credits, they are specific to the fuel industry, ensuring a sector-focused approach to emissions reduction. 🌱read more
M&A Deals
🤝Cargill Assumes Full Control of SJC Bioenergia 🌱
Cargill has acquired the remaining 50% stake in SJC Bioenergia, a Brazilian sugar and ethanol producer, becoming its sole owner. This move enhances Cargill's position in the renewable energy sector. SJC Bioenergia operates two plants in Goiás, processing sugarcane and corn to produce sugar, ethanol, corn oil, and high-protein distillers' dried grains, while also generating electricity. The company processes approximately 9 million tons annually, with plans to increase to 11.5 million tons by 2030. Cargill's decision reflects optimism about the future of biofuels in Brazil. 🌱 read more
🌾Cooxupé Takes Majority Stake in Agrobom🤝
Cooxupé, Brazil's largest coffee cooperative and exporter, has acquired a majority stake in Agrobom, a grain-focused company based in Bom Jesus da Penha, Minas Gerais. This strategic move marks Cooxupé's official entry into the cereal market, diversifying its operations beyond coffee. The partnership aims to leverage Cooxupé's extensive infrastructure and Agrobom's expertise in grain production to enhance service offerings to cooperative members who cultivate soybeans and corn. While specific financial details of the acquisition have not been disclosed, the collaboration is expected to strengthen Cooxupé's position in the national agribusiness sector and expand its reach in the international commodities market. 🌱read more
🐾ADM Seeks Buyer for Brazilian Pet Food Division 🇧🇷
Archer Daniels Midland (ADM), a global leader in grain and animal nutrition, is looking to sell its pet food division in Brazil. The company has hired Barclays to find potential buyers for this unit, which generates approximately R$1.1 billion in annual revenue but faces a R$100 million loss. The valuation for this transaction is expected to be between R$1 billion and R$1.5 billion. This move aligns with ADM's global strategy to focus on its core businesses, especially after recent accounting issues in its Nutrition segment led to delays in financial reporting and executive changes. Despite the challenges, the Brazilian pet food market remains attractive, with an estimated revenue of over R$77 billion in 2024, marking a 12% increase from the previous year. The pet food segment alone accounted for R$42 billion of this total. 🌱read more
Brazil Ag Misc
📉Lavoro to Close 70 Stores Amid Credit Crunch🏪
Lavoro, Brazil's largest agricultural retail network, has announced plans to close 70 of its 183 stores due to significant credit restrictions from suppliers and banks, which have led to reduced inventories and weakened sales. This decision comes as the company faces liquidity challenges, with cash purchases dropping from 25-30% to single digits, increasing the need for working capital. As a result, Lavoro has revised its revenue forecast for 2025 to R$6.5 billion to R$7.5 billion, down from the previous estimate of R$8.6 billion to R$9.2 billion, representing a 21% decrease at the midpoint. 🌱read more
🌾Consultancy Sees Increase in Agribusiness Bankruptcies in 2025 📉
According to Angelo Guerra Netto, founding partner of EXM Partners, 2024 served as a precursor to challenges anticipated in 2025 for Brazil's agribusiness sector. Elevated interest rates have hindered debt renegotiations, increasing financial costs for producers and affecting liquidity. The Central Bank's recent decision to raise the Selic rate to 13.25% per annum, with expectations of further increases, exacerbates these difficulties. Data from Serasa Experian, compiled by EXM Partners, indicates a rise in bankruptcy filings, particularly among soybean producers, which increased from 53 to 59 cases between 2023 and 2024. Netto emphasizes that the second half of the year is typically the most critical period for such filings, suggesting that 2025 may see a continued upward trend in financial distress within the sector despite forecasts of a record crop this year. 🌱read more
🏗️ Brazil Potash to Invests $2.5 Billion in Potassium Mine 🇧🇷
Brazil Potash Corp, with backing from Canadian-Indian businessman Stan Bharti, has committed $2.5 billion to develop the Autazes Potassium Project, approximately 100 kilometers southeast of Manaus, to become the country's largest potassium mine. Once fully operational, it is expected to produce 2.4 million tons of potassium chloride annually, significantly reducing Brazil's dependence on imported fertilizers.🌱 read more
🌎Brazil Poised to Become the World's Most Reliable Ag Exporter 📈
Alexandre Mendonça de Barros, economist and FGV advisor, sees Brazil as a key beneficiary of rising global trade tensions, particularly between the U.S. and China. With increasing tariffs and market volatility, Brazil’s commodities—soybeans, corn, cotton, and meats—could gain a stronger foothold in global trade. Higher tariff risks may push countries to increase inventories, reinforcing Brazil's reputation as a stable supplier. Additionally, challenges in U.S. meat production and growing demand for tropical products further position Brazil as a major global exporter. 🌱 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.