BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados
Santos Neto Advogados 418, Funchal Street 22nd floor São Paulo – SP Brazil Tel: +55 11 3124 / 3070 Email: Elvis.ferreira@santosneto.com.br Web: www.santosneto.com.br
1. Agricultural Market Overview 1.1 Key Economic Indicators
1.3 Export Profile and Global Trade Role Agribusiness is the most internationalised sector of the Brazilian economy, responsible for 27% of GDP, 20% of jobs and almost half of the country’s exports. Total Brazilian agribusiness exports reached USD148.4 billion in 2024 (considering the USDA agribusiness classification), consolidating the country as the third largest exporter of agro products in the world, behind the European Union and the USA. This performance was driven mainly by the growth in shipments of soy, meats (beef, pork and poultry), sugar, corn and coffee. An analysis of the sector’s trade data shows a high concentration in both products and destination mar- kets. Soybeans and meat alone account for 54% of Brazilian agribusiness exports. As for the des- tinations of these products, China and other Asian countries absorb approximately half of Brazil’s agri- cultural exports. Despite the high concentration in a few products and destinations, the Brazilian strategy has achieved very positive results in the agribusiness trade balance. In addition to leading the world market share of the main exported agricultural commodities, exports of processed agricultural items have also grown at an average annual rate of 8.4%, surpassing Brazil’s main competitors, such as the USA and the European Union. 2. Legal and Institutional Framework 2.1 Agriculture-Sector Policies and Planning Instruments Key Policy Instruments Brazilian agricultural policies are developed nation- ally by the Secretariat of Agricultural Policy (SPA), an
According to data from the Food and Agriculture Organization of the United Nations (FAO), in 2021 the world produced approximately USD6 trillion in agribusiness products at current values, with Brazil accounting for 2.6%, equivalent to USD158 billion and ranking 5th in the world for production in terms of value. Considering the value of the main agrifood commodities consumed in the world, Brazil accounts for 10.3% of all production, behind only China, the United States and India. The entire agrifood chain contributes over a quarter of Brazil’s overall economic output (estimated at roughly 23% to 26%), according to data tracked by Cepea. The total monetary value of farm-gate and livestock output is projected at over BRL1.5 trillion, demonstrating strong domestic pro- duction volumes. Brazil utilises roughly 30% of its land area for farming and pasture, standing as a top Brazil is a global agricultural powerhouse and leads the world in the export of several key commodities in the agricultural sector, such as soybeans, cotton, beef and orange juice. It is already the largest exporting country in the world (when not considering economic blocs such as the European Union), surpassing its biggest competitor in the international food trade – the USA – since 2023. The Brazilian agricultural supply chain functions through an integrated, highly scaled network spanning inputs, production, processing and export logistics. global producer of grain and protein. 1.2 Main Crops and Supply Chains
13 AGRICULTURAL LAW 2026
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