2024 Retrospective: The 10 Most Important Events in Brazilian Agribusiness, by Renato Seraphim

In 2024, Brazilian agribusiness faced challenges and achieved significant milestones, solidifying its position as a pillar of the global economy. Check out the 10 key events that shaped the sector throughout the year, highlighted by Renato Seraphim for AgNews.

1. Leadership in soybean production

The 2024 soybean harvest reached a historic record, with an estimated production of 155 million tons, reaffirming Brazil's position as the world's largest producer and exporter of this vital oilseed. This modest increase compared to the previous cycle highlights the importance of adopting advanced technologies, such as precision agriculture and the use of more resilient seed varieties.

These innovations mitigated the effects of adverse weather conditions, increasing average productivity per hectare and strengthening Brazil's position in the international market.

Soybean exports are projected to exceed 103 million tons, driven by investments in logistics infrastructure, including improvements to railways and ports, and diversification into new markets, especially in Asia. These efforts demonstrate the strategic importance of soybeans to the national economy and their essential contribution to the global food supply.

2. Implementation of the EUDR (European Union Deforestation Regulation)

2024 marked a turning point in global agricultural trade, presenting significant challenges for Brazil, especially for farmers who depend on exports to the European Union. This regulation aims to combat deforestation and forest degradation associated with the production of goods such as soybeans, coffee, cocoa, and beef, requiring compliance with strict sustainability and traceability standards.

What does the EUDR require?

The EUDR prohibits the marketing of products directly or indirectly linked to deforestation after December 31, 2020. To meet its requirements, exporters must:

• Demonstrate that agricultural production adhered to local environmental laws and did not contribute to deforestation;

• Provide robust proof of traceability, from the origin of the crop to the final destination in Europe;

• Establish systems to monitor supply chains and prevent contamination with non-compliant products.

The impact in Brazil:

As one of the largest exporters of agricultural products to Europe, particularly soybeans, beef, and coffee, Brazil faces pressure to improve sustainability practices and traceability mechanisms.

• Traceability: A key demand of the EUDR is full traceability. This requires Brazilian producers, many of whom are small and medium-sized farmers, to adopt technologies and systems that track production from planting to the final consumer.

• Sustainability: In addition to traceability, the EUDR promotes agricultural practices that minimize environmental impacts, including:

  • Protection of native vegetation

  • Reduction in the use of agrochemicals

  • Implementation of reforestation and regenerative agriculture practices

    
    

3. Growth in meat exports

Brazilian meat exports reached historic levels in 2024, solidifying the country as one of the world's leading suppliers of animal protein. Driven by beef, pork, and chicken, foreign sales saw significant growth, especially in Asian markets. Countries like China and Indonesia remained the largest buyers, while others, such as Vietnam and the Philippines, increased their imports, further diversifying the destinations for Brazilian production.

• Beef Exports: In 2024, Brazil exported approximately 2.5 million tons of beef, a 7% increase over the previous year. China remained the main destination, accounting for over 60% of total exports. Shipments to the Chinese market generated approximately US$9 billion in revenue, representing a 10% increase compared to 2023.

• Chicken exports: Brazil exported 5 million tons of chicken, generating record revenues of US$10 billion. This growth was driven by new trade agreements with Middle Eastern countries and strengthened partnerships with Indonesia and Japan.

• Pork Exports: Pork exports exceeded 1.2 million tons, generating US$3 billion in revenue. Market diversification was crucial, notably a 15% increase in purchases by the Philippines and Vietnam.

Factors that drove growth:

• Asian Demand: The economic recovery of Asian countries and the growing demand for high-quality meat have positioned Brazil as a key supplier. For example, China has faced a decline in domestic pork production, creating opportunities for increased imports of Brazilian animal protein.

• Market diversification: In addition to its main Asian markets, Brazil has expanded its presence in emerging markets and Middle Eastern countries, such as the United Arab Emirates and Saudi Arabia. This diversification has reduced dependence on a single market and mitigated the impact of trade restrictions in other regions.

• Logistics and health improvements: The sector has invested in improved traceability systems to meet the requirements of importing countries, especially regarding food safety and sustainability.

4. The Expansion of AgTechs: Democratizing Technology in Agriculture

2024 marked a major breakthrough for the AgTech ecosystem in Brazil. With over 1,900 active startups in the sector, the country has established itself as one of the world's leading agricultural innovation hubs. These companies are revolutionizing the way farmers face daily challenges, leveraging technology to increase productivity, reduce costs, and promote sustainability.

AgTech and similar solutions are transforming the lives of small and medium-sized producers, who often struggle to access cutting-edge technologies. With these tools, farmers can:

• Improve agricultural management: Plan crops with greater precision, minimizing waste and optimizing the use of inputs.

• Increase productivity: Adopt data-driven practices to maximize land and resource use.

• Promote sustainability: Implement techniques that preserve soil health, conserve water, and reduce environmental impact.

Growth of AgTechs

The growth of this ecosystem was driven by:

• Investments in startups: Brazilian AgTechs received more than R$3 billion in investments in 2024, according to data from AgFunder.

• Market adoption: Large cooperatives and producers have begun to integrate these solutions into their operations.

• Global recognition: Brazil has been recognized as a global leader in agricultural innovation during events such as COP29 and the AgTech Summit in Singapore.

With the continued expansion of this ecosystem, Brazil not only strengthens its agribusiness but also positions itself as a global example of how technology can transform agriculture into a more productive, sustainable, and inclusive force.

5. Climate phenomena and adaptations: Challenges and resilience

The year 2024 was marked by extreme weather events that put Brazilian agriculture to the test, exposing the sector's vulnerabilities but also highlighting its resilience. Prolonged droughts and excessive rainfall presented significant challenges to farmers, directly impacting production and operating costs.

In southern Brazil, states like Rio Grande do Sul, Santa Catarina, and Paraná faced a dual challenge: devastating floods combined with one of the worst droughts in recent years. Some regions recorded rainfall volumes up to 40% below the historical average, according to data from INMET (National Institute of Meteorology).

Meanwhile, in the North region: Above-average rainfall caused flooding, hindering harvests, especially in grain production and livestock areas in the states of Amazonas and Pará.

Despite these challenges, the agricultural sector has demonstrated resilience, supported by the increasing adoption of technologies and improved management practices.

6. Advances in biotechnology

The year 2024 saw significant advances in agricultural biotechnology, solidifying this field as an essential tool for addressing the challenges of food production amid climate change and sustainability pressures. Through new technologies and cultivars better adapted to adverse conditions, biotechnology played a vital role in improving the efficiency and resilience of Brazilian agribusiness.

Main innovations of 2024

• Drought-resistant soybean seeds:

  Companies like Embrapa and Bayer have introduced soybean varieties adapted to drier regions, such as Matopiba (Maranhão, Tocantins, Piauí, and Bahia). These seeds have shown productivity increases of up to 15% in areas with water deficits.

• New generation Bt corn:

  Recently developed Bt corn hybrids have offered increased caterpillar resistance and herbicide tolerance, reducing the need for pesticide applications and costs for farmers.

• CRISPR-edited sugarcane:

  A CRISPR-edited sugarcane variety has been released, with a higher sucrose content and resistance to diseases such as orange rust.

• Bayer's Bollgard® 3 XtendFlex® Platform:

  This technology expanded weed protection by integrating tolerance to dicamba and glufosinate ammonium in addition to glyphosate.

  
  

Results in numbers

• Soybeans: Pest-resistant varieties increased average yields by 12% in the South and Central-West regions.

• Sugarcane: The CRISPR-edited cultivar increased yield by 10 tons per hectare.

• Cost reduction: The adoption of pest-resistant seeds and advanced technologies has resulted in significant savings per hectare in pesticide use.

Advances in biotechnology in 2024 reaffirmed Brazilian agribusiness's commitment to sustainability and innovation. Solutions developed by companies and institutions like Embrapa demonstrated how science can address the challenges of food production, protecting the environment, and increasing farmers' profitability.

These innovations are crucial steps towards establishing Brazil as a global leader in sustainable agricultural technology.

7. Sustainable models

ILPF – Crop-Livestock-Forest Integration

In 2024, ILPF (Crop-Livestock-Forest Integration) consolidated itself as a sustainable production model in Brazil, combining different agricultural activities in the same area to improve economic efficiency and promote environmental conservation.

This system integrates grain cultivation, livestock farming and forestry, creating synergies that:

• They improve soil health and reduce erosion.

• They optimize land use, diversifying sources of income.

• They sequester carbon and contribute to mitigating climate change.

  
  

As more farmers adopted ICLF practices, Brazil reinforced its leadership in sustainable agriculture, demonstrating how innovation can harmonize productivity and environmental preservation.

Benefits of ILPF

• Environmental sustainability: ILPF improves soil fertility, aids in carbon sequestration, and contributes to biodiversity conservation.

• Productive efficiency: Crop integration allows for more efficient use of natural resources, resulting in greater productivity and income diversification for producers.

  
  

Between the 2015/2016 and 2020/2021 harvests, the area dedicated to ILPF in Brazil grew by approximately 52%, reaching around 17 million hectares.

ILPF is internationally recognized as a regenerative agricultural practice, positioning Brazil as a leader in sustainable solutions for agricultural production.

ILPF initiatives and expansion

• In 2024, the ILPF Network launched the "ILPF Digital" application, developed with the support of the Land Innovation Fund, to map and optimize the management of integrated systems across the country.

• The ABC+ Plan of the Ministry of Agriculture, Livestock and Supply aims to expand the adoption of ILPF to 10 million hectares by 2030, reinforcing Brazil's commitment to low-carbon agricultural practices.

8. Judicial recoveries

The judicial reorganizations of large Brazilian agribusiness companies have had significant impacts on the sector. AgroGalaxy, one of the largest retail and distribution platforms for agricultural inputs in the country, filed for judicial reorganization in September 2024, accumulating debt of R$4.678 billion.

This scenario reflects the financial challenges faced by companies in the sector, resulting in an increase in bankruptcy filings. In the third quarter of 2024, the agricultural sector registered 264 bankruptcy filings, a 20.5% increase compared to the same period the previous year.

Impacts on the sector

• Investor and creditor confidence: The collapse of large companies can shake confidence, hindering access to credit and capital needed to boost the sector.

• Domino effect: Debts concentrated in a few companies can trigger a crisis in the production chain, affecting suppliers, producers, and eventually reducing national agricultural production.

• High production costs: Financial instability compromises the supply of agricultural inputs, creating challenges for producers and impacting the competitiveness of agribusiness.

  
  

Without adequate solutions, these challenges could limit investment in the sector and hinder the growth of Brazilian agribusiness.

9. Record rural credit

In 2024, the Federal Government launched the 2024/2025 Harvest Plan, allocating R$400.59 billion to finance Brazilian agribusiness, a 10% increase compared to the previous harvest.

The 2024/2025 Harvest Plan continues to promote sustainable agricultural practices. Producers with an approved Rural Environmental Registry (CAR) or who adopt sustainable practices can receive up to a 1 percentage point reduction in interest rates for financing costs.

In addition to the R$400.59 billion, R$108 billion is available in Agribusiness Credit Letters (LCA) for Rural Product Notes (CPR), totaling R$508.59 billion to promote the national agricultural sector.

This record volume of agricultural credit seeks to modernize production, allowing producers of all sizes to invest in advanced technologies and quality infrastructure, increasing productivity and competitiveness in the global market.

10. Controversies and attacks on Brazilian agribusiness

The year 2024 was marked by controversies involving the sustainability of Brazilian agriculture, involving European countries and companies.

In October 2024, Jurgen Esser, Danone's Global CFO, stated that the company no longer purchased soybeans from Brazil, citing concerns about the product's sustainability. This statement sparked intense backlash in the Brazilian agricultural sector, including boycotts of the brand's products. Danone later apologized to the Ministry of Agriculture, clarifying that it continued to purchase Brazilian soybeans and that its previous statements had been misinterpreted.

In November, Carrefour, a French retail group, announced it would suspend sales of meat from Mercosur countries, including Brazil, citing concerns about agricultural practices in the region. This decision provoked negative reactions in Brazil, with calls for boycotts of Carrefour supermarkets. The group later apologized, stating that it had no intention of pitting French agriculture against Brazilian agriculture, and reaffirmed its commitment to Brazilian agribusiness.

The Brazilian government, under pressure from agribusiness influencers such as Marcos Fava Neves and Antônio Cabrera, strongly condemned the European companies' statements, calling them "hasty and unfounded."

Meanwhile, European farmers began protesting against the EU-Mercosur free trade agreement, claiming that increased imports of South American agricultural products would harm the bloc's agriculture. These protests highlighted concerns about unfair competition and the sustainability and environmental standards of imported products.

These controversies highlight the tensions between Brazilian agriculture and the "supposed" sustainability standards required by European countries and companies, emphasizing the need for dialogue and alignment on sustainable agricultural practices in international trade.

International recognitions

Despite the criticism faced by Brazilian farmers in 2024, there were also numerous recognitions, such as the recognition of sustainable agricultural practices at COP29. The adoption of digital technologies, the use of bioinputs, and strict adherence to the Forest Code were widely praised.

Several Nobel Prize laureates have highlighted the excellence of Brazilian agriculture, pointing to it as a model of success and innovation. Among them, Rattan Lal, winner of the 2007 Nobel Peace Prize, has frequently praised the transformation of Brazilian agriculture since his first visit in 1975. He asserts that the country has become an agricultural powerhouse due to scientific excellence and the effective implementation of public policies, resulting in sustainable and efficient agricultural production.

Outlook for 2025

As we look toward 2025, it's crucial that those unfamiliar with Brazilian agribusiness prioritize information from specialized and recognized sources. This will prevent "digital influencers" with limited knowledge of the sector from distorting and impoverishing debates that could be more rational and favorable to our farmers.

These international recognitions highlight the importance of Brazilian agriculture on the global stage, highlighting its significant contribution to food security and sustainable development.

Source:AgNews

Retrospective 2024 - 2024 Retrospective: The 10 Most Important Events in Brazilian Agribusiness. by Renato Seraphim , Business Strategist / CEO, Ciarama Máquinas John Deere