Published Date : Jul 04, 2016
In the global agricultural market, Brazil plans to increase its share from current 7% to 10% in the next five years. Though the country’s economy is struggling under recession, Brazil has the potential to emerge as a strong contender in the global agricultural market. The country is focusing on growing corn, ethanol, and meat. However, the existence of red tape has been detrimental in the growth of the agriculture sector in the country. According to Blairo Moggi, the nation’s agricultural minister, Brazil can participate largely in the production of animal proteins.
Agriculture is the Only Positive Sector in Struggling Brazilian Economy
In 2016, the total grain production in Brazil is expected to reach 210.7 mn tons. Corn and soy account for the majority share in the total grain production. It is commendable for the nation to reach such a target for grain production in spite of being affected by El Nino. The planting of soy was delayed due to dry spells across various regions. The corn production in the nation has been also affected due to the adverse effects of El Nino. Brazil is the second largest exporter of soy and corn worldwide. The country is focusing on pork production and poultry to support the growth of its agricultural sector.
Anticipating the robust growth of the agricultural sector in Brazil, the U.S.-based biotech company Monsanto and Microsoft Corporation has announced a partnership to invest in startup firms working on agricultural technologies. Technology firm Qualcomm is also investing in this fund. Monsanto will join a Brazilian investment fund worth US$92 mn that is managed by Microsoft. After evaluating the ideas of various digital tools to the agricultural production in the nation, the board would provide US$459,000 for the early development of the selected ideas.