Customer Logins

Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.

Customer Logins

My Logins

All Customer Logins
S&P Global Commodity Insights
  • S&P Global
  • S&P Dow Jones Indices
  • S&P Global Market Intelligence
  • S&P Global Mobility
  • S&P Global Commodity Insights
  • S&P Global Ratings
  • S&P Global Sustainable1
Close
Discover more about S&P Global’s offerings.
Investor Relations
  • Investor Relations Overview
  • Presentations
  • Investor Fact Book
  • News Releases
  • Quarterly Earnings
  • SEC Filings & Reports
  • Executive Committee
  • Merger Information
  • Governance
  • Stock & Dividends
  • Shareholder Services
  • Contact
English
  • Español
  • 中文网站
  • Português
  • 한국어
  • हिंदी
  • English (Australia)
  • 日本語
Support
  • Get Support
  • System Notifications
  • Delivery Platforms
  • Regulatory Engagement
Login
  • Commodity Insights Login
  • Access IHS Markit Products
login
Register
logo
  • Commodities
  • Products & Services
  • Methodology
  • Market Insights
  • Energy Transition
  • Events
  • S&P Global
  • S&P Dow Jones Indices
  • S&P Global Market Intelligence
  • S&P Global Mobility
  • S&P Global Commodity Insights
  • S&P Global Ratings
  • S&P Global Sustainable1
  • Oil Upstream LNG Natural Gas Electric Power Coal Shipping Petrochemicals Metals Agriculture
    Latest in Commodities
    Listen: Grangemouth’s closure: insights into the changing global refining landscape

    The UK’s Grangemouth refinery is set to cease operations in the coming years to be converted into a...

    Russian diesel flows to Brazil remain strong, while Petrobras slashes prices

    Russian diesel continues to flow to Brazil and volumes are expected to remain steadily strong in...

    Renewable energy access, trade protection essential to decarbonize: US aluminum industry

    Maintaining trade measures and expanding access to reliable, renewable energy in the US are...

  • Oil LNG Natural Gas Electric Power Coal Shipping Petrochemicals Metals Agriculture Energy Transition
    I Need
    Advisory Solutions/Consulting Market Insights and Analytics Commodity Prices and Essential Market Data Real-Time News, Prices and Analysis Maps and Geospatial Data Forward Curves and Risk Valuation Data
    Latest Release Notes
    Data and Distribution
  • Our Methodology Methodology & Specifications Price Assessments Subscriber Notes Price Symbols Symbol Search & Directories Corrections Complaints
    References
    Market On Close Index Sourced Data (Survey) Methodology Review & Change MOC Participation Guidelines Holiday Dunl.org SEE ALL REFERENCE TOOLS
  • Latest News Headlines All Topics Videos Podcasts Special Reports Infographics Insights Magazine Insight Blog    Research & Analysis Top 250 Rankings   
    Latest in Market Insights
  • PLATTS ANALYTICS PRODUCT PLATFORM
    ACCESS ANALYTICS HUB
  • All Events Webinars Conferences Methodology Education Training and eLearning Forums Global Energy Awards    Global Metals Awards   
    Featured Events
    Aluminum Symposium
    Caribbean Energy Conference
    Oil Market Fundamentals & Price Forecasting at the Caribbean Energy Conference
SPECIAL REPORTS Dec 10, 2020

Brazil Economic and Agriculture Outlook

Brazil Economic and Agriculture Outlook reveals that Brazilian agriculture has moved to the forefront of the global export scene becoming a major supplier to the global market. Brazil's land mass along with its acceptance of GMO crop technologies has allowed the country to compete with other major exporting nations in the corn and soy markets.

Free sample report

Brazil's soybean exports have increased by 230% over a ten-year period. During that same timeframe, US soybean exports went from 41 million tonnes to 45 million tonnes, an increase of 10%. For Brazil that represents its share of the world soybean exports rising to 57%.

Governmental policy in general has been supportive to the agriculture sector along with intense regional backing and a domestic currency that has recently spurred record local prices which will continue to support further expansion. This is in contrast with the United States whose producers are struggling with prices at 10-year lows. For example, ethanol production and consumption has been a part of the Brazilian culture for many decades and as second crop corn production becomes a larger profit center for the Brazilian farmer, the domestic corn ethanol industry is beginning to expand. The RenovaBio program will create a large domestic demand level for biodiesel and subsequently vegetable/animal fat as a feedstock.

Brazil has also entered the global protein market as a major supplier of pork, poultry, and beef. Brazilian producers will be under continued global scrutiny surrounding the environmental impacts of pulling land into production moving forward.

The transportation sector has made many inroads towards lowering logistic costs for producers helping to increase margins and further improvement is expected. Trucking rates across Brazil, for the transportation of soybean exports, have been trending lower since spring 2018. Global agriculture companies have added port capacity increasing the ability for new monthly export records. Presently, these initiatives have returned costs to some of the lowest levels seen across the past five years.

The Brazilian economy struggled with a plunging Gross Domestic Product (GDP) following the outbreak of COVID-19 but in 2021, the government is expected to start its return to fiscal prudence and relaunch the privatization agenda, keeping public debt manageable. Given this, we do not expect that rating agencies will downgrade Brazil's sovereign rating and as result, the economy is seen as growing 3.8% in 2021 after plunging 6.4% in 2020.

IHS Markit estimates the deficit of the overall public sector for 2020 at above 15% of GDP. This should shrink to around 5% by 2024 as we are assuming the government will return to fiscal prudence in 2021 while passing a tax reform. In addition to the reduced policy rate, the Central Bank of Brazil has sizable ammunition to continue to provide liquidity and incentivize credit.

Brazil will face many challenges in the years ahead as the federal government is expected to struggle with new infrastructure projects due to a lack of foreign investors and rigid pre-requisites defined by federal government entities. Inability of federal government to suppress deforestation in the Amazon region will impact foreign investment opportunities. The livestock industry will need to plan for potential outbreaks of Foot and Mouth Disease, African Swine Fever and avian flu impacting Brazil's growing meat protein export business.

However, Brazilian producers will see increased yields and productivity derived from higher adoption rates for new technologies, which will foster growth and investment opportunities not only in crops but animal nutrition technologies as well. This not only includes seed genetics but also water management projects in the arid region of the Northeast focused on high value exportable products and supported by efficient irrigation equipment and managerial software.

The Bolsanaro government could create lending programs for farmers linked to environmental and sustainable farming practices to spur international investment. Although caloric meat demand is reaching peak levels in developing nations, beef and pork consumption is rising both in the Americas and Asia, along with cheap poultry prices supporting the market growth in all regions.

5 KEY QUESTIONS THIS REPORT WILL ANSWER ON BRAZIL

What is the size of the market and growth opportunity ?

What's the macro and political situation and how does it impact the agribusiness sector ?

What are the key commodities and their planted areas, production and yields ?

What are the trends and drivers in the livestock segment ?

How does Brazil perform against other countries ?

Contents:

Chapter 1: Introduction

Chapter 2: Macroeconomic status and trends includes a near-term outlook.

Chapter 3: Political scenario - covers Government stability, policy direction and predictability, and Opposition prospects and program

Chapter 4: Energy sector and biofuels

Chapter 5: Freight rates

Chapter 6: Agriculture and trade policy

Chapter 7: Agricultural crops: food and beverage sector, soybeans (supply, demand, price, cost of production), corn (as soybean), cotton (as soybean), sugarcane (supply, demand, price), coffee (prices), oranges (supply, demand), livestock (beef, pork, poultry)

Chapter 8: Agricultural inputs: farmland values, fertilisers (ammonia, urea, nitrates, nitrogen plants, phosphorus, potassium), crop protection and seeds

Chapter 9: Trends to watch

Chapter 10: SWOT Analysis

Please contact alan.bullion@ihsmarkit.com for any further information



This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.

Previous Next

Learn more about Agribusiness

Visit our site
Learn more
Related Posts
VIEW ALL
Articles & Reports Nov 08, 2023

Emerging suppliers on processed agricultural commodities

Blog Jun 20, 2023

WCS 2023: Exploring Plant Breeding Innovation, Sustainability, and Policy Challenges

Blog Mar 02, 2023

US EPA initiates court-mandated sulfoxaflor consultation

VIEW ALL
{"items" : [ {"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fwww.spglobal.com%2fcommodityinsights%2fen%2fci%2fresearch-analysis%2fbrazil-economic-and-agriculture-outlook.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fwww.spglobal.com%2fcommodityinsights%2fen%2fci%2fresearch-analysis%2fbrazil-economic-and-agriculture-outlook.html&text=Brazil+Economic+and+Agriculture+Outlook+%7c+S%26P+Global+","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fwww.spglobal.com%2fcommodityinsights%2fen%2fci%2fresearch-analysis%2fbrazil-economic-and-agriculture-outlook.html","enabled":true},{"name":"email","url":"?subject=Brazil Economic and Agriculture Outlook | S&P Global &body=http%3a%2f%2fwww.spglobal.com%2fcommodityinsights%2fen%2fci%2fresearch-analysis%2fbrazil-economic-and-agriculture-outlook.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=Brazil+Economic+and+Agriculture+Outlook+%7c+S%26P+Global+ http%3a%2f%2fwww.spglobal.com%2fcommodityinsights%2fen%2fci%2fresearch-analysis%2fbrazil-economic-and-agriculture-outlook.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"} ]}
Filter Sort
  • About S&P Global Commodity Insights
  • Media Center
  • Advertisers
  • Locations
  • Get Support
  • Contact Us
  • Careers
  • Corporate Responsibility
  • History
  • Investor Relations
  • Leadership
  • Glossary
  • © 2023 by S&P Global Inc. All rights reserved.
  • Terms of Use
  • Do Not Sell My Personal Information
  • Privacy Policy & Cookie Notice
  • Site Map