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The sector recorded growth of 6.2% compared to the same period last year

Brazilian agribusiness exports broke a record for the month of October, reaching US$ 14.27 billion. The amount represented a growth of 6.2% compared to the US$ 13.43 billion traded in October 2023. This result is accompanied by an increase in the export quantum index (+3.7%) and also in the price index (+2.5%).

“If we look at the quantity of products exported, Brazil has only been increasing. If we look at the data from January to September 2024, our exports fell by 0.2%, but with the data up to October and with the 6.2% growth we had, we have already reversed the trend and, today, from January to October, the agribusiness sector is growing by 0.3% compared to the same period last year. Our agribusiness basically represents half of everything that Brazil exports”, highlighted the Secretary of the Secretariat of Commerce and International Relations, Luis Rua.

According to SCRI/Mapa, the main exporting sectors were the soy complex, meats, sugar and alcohol complex, forestry products, coffee and cereals, flours and preparations. These six sectors represented 82.7% of the Brazilian agribusiness export agenda in October or the equivalent of US$ 11.80 billion.

Regarding the increase in shipments, there was an increase in the exported volume of numerous products, such as raw cane sugar (+ 1.00 million tons), soybean meal (+ 452.56 thousand tons), cellulose (+ 423.43 thousand tons), meats (+ 190.67 thousand tons).

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Meat exports were US$ 2.62 billion in October 2024 (+38.6%). The growth in foreign sales of meat was US$ 729.75 million in absolute terms, thus being one of the aforementioned sectors that offset the drop in grain exports (mainly soybeans and corn). In this sector, one of the highlights is beef, which registered US$ 1.36 billion, of which US$ 1.26 billion was fresh beef. The exported value is a historical record, with its equivalent in volume, 270.33 thousand tons of fresh beef, also a record.

Foreign sales of Brazilian sugar continue to rise in 2024. In October, 3.73 million tons of sugar were shipped (+29.8%), which at the lower price of US$ 473 per ton (-11.8%), generated revenues of US$ 1.76 billion for the country. Another sector with record exports was the coffee sector, shipping US$ 1.40 billion abroad in October 2024 (+61.1%). The value was US$ 529.84 million higher compared to the same month of the previous year. External sales of green coffee broke records in value and quantity, US$ 1.31 billion (+62.7%) and 279.26 thousand tons (+12.0%), respectively.

In addition to these, it is worth highlighting the external sales of some products that stood out for growth in the absolute value exported: orange juice, non-carded or combed cotton, live cattle, dried beans, and orange essential oil. These products were responsible for an increase of US$ 362.01 million in exports in October 2024 compared to October 2023.

YEAR-TO-DATE (COMPARISON JANUARY-OCTOBER/2024 – JANUARY-OCTOBER/2023)

Between January and October 2024, agribusiness exports totaled US$ 140.02 billion, which represented a growth of 0.7% compared to the US$ 139.62 billion exported in the same period in 2023. This reached a record export value for the month of October.

This record was strongly influenced by the increase in the volume shipped (quantum index), which rose by 6.6%. On the other hand, the price index fell by 5.9%, which reduced the possibility of reaching an even more expressive value in exports.

Agribusiness represented almost half of Brazil's total export agenda during the period, at 49.2%.

The volume of Chinese investment in Brazil grew 33% in 2023 compared to the previous year, to 1.73 billion dollars, but remains at a historically low level, with the second lowest figure in 15 years, according to a study published this Tuesday by the Brazil-China Business Council (CEBC).

The recovery starts from a low comparative base after the value plummeted in 2022 amid a reduction in transfers to large-scale projects that took Brazil from the top of the list of largest destinations for Chinese investment in the world to ninth place, a level that was maintained in 2023.

Last year, there were 29 projects with Chinese investment in the country, a decrease of 9% compared to the previous year.

“In addition to a higher number of less capital-intensive projects in recent years, the exchange rate factor also helps to explain the recent drop in the value of Chinese investments in Brazil,” the study said.

According to the document, in 2010, when investments reached a record $13 billion, the dollar was trading at an average of R$1.76. Between 2020 and 2023, the Brazilian currency depreciated considerably, with the average value of the dollar reaching R$5.18.

The document also points out that the rate of implementation of Chinese investments in 2023 increased, with 88% of the value of announced projects actually being implemented, compared to 27% in 2022.

The study highlighted that the partial recovery of Chinese investments in Brazil went against the trend of direct investments in the country in general, which fell 17% last year, according to data from the Central Bank.

In terms of type of enterprise, the electricity sector led the attraction of Chinese productive capital to Brazil in 2023, representing 39% of the total, at US$668 million, with initiatives in the wind, solar and hydroelectric segments. Investments in the automotive sector increased by 56%, to US$568 million.

Amid trade disputes between China and the United States, global Chinese investments grew last year, according to the study, with a focus on developing countries, which took nine of the top ten positions as the main destinations for investments.

Chinese investments in the United States, which exceeded US$50 billion in 2016, fell to US$1.7 billion last year. Investments in European countries also fell.

In the opposite direction, nations that make up the so-called “New Silk Road”, a Chinese investment plan in trading partners around the world, received 37% more investments in 2023.

In recent statements, President Luiz Inácio Lula da Silva has stated that he intends to discuss with China what Brazil would gain from participating in the New Silk Road.

Oil-based products and food products boosted Brazilian industry in September and production increased for the second month in a row, closing the third quarter with a result above expectations.

Industrial production increased in September to 1.1% compared to the previous month, when there was an increase of 0.2%, and grew 3.4% over the same month last year, according to data released this Friday by the Brazilian Institute of Geography and Statistics (IBGE).

The results were above expectations in a Reuters survey of monthly increases of 0.9% and 2.8% on an annual basis.

The buoyant labor market and rising incomes favor Brazilian industry, which on the other hand faces a rise in the basic interest rate and the prospect of a slower pace of the economy in the second half of the year.

The IBGE reported that, in September, the activities with the main positive influences were the production of coke, petroleum products and biofuels (+4.3%) and food products (+2.3%).

Both sectors grew again after declines in August and July, when they accumulated losses of 3.5% and 4.2%, respectively.

Also noteworthy were the performances of motor vehicles, trailers and bodies (+2.5%), tobacco products (+36.5%), metallurgy (+2.4%) and electrical machinery, equipment and materials (+3.3%).

Among the economic categories, the production of capital goods increased by 4.2% in September compared to August. The intermediate goods and semi-durable and non-durable consumer goods segments also recorded growth in production, of 1.2% and 0.6%, respectively. Only the durable consumer goods sector showed a decline, of 2.7%.

Expert points out the aspects that should be taken into account when choosing the input to be applied to crops

According to the study National Fertilizer Production, by the Special Secretariat for Strategic Affairs of the Federal Government, Brazil is responsible for around 8% of global fertilizer consumption, ranking fourth in the world, behind only China, India and the United States. They provide and replace the nutrients needed by plants, when they are not present in the soil, until they reach the levels appropriate for their development, achieving their maximum potential, using resources sustainably, that is, with less waste and greater agricultural productivity.

“Agriculture is directly impacted by population growth, since it increases the demand for food. Therefore, correcting soil and plant nutrition through fertilizers ensures higher production and, consequently, greater supply”, says Luís Schiavo, CEO of Naval Fertilizantes, a company specialized in biological products, nutrition and application technology for crops and pastures.

To choose the fertilizer efficiently, it is necessary to consider several factors, such as understanding the needs of the crop to be planted. Grasses, for example, have different needs than legumes and soil analysis varies greatly, even within the same property. “There are different clay levels between plots, so it is essential to have technical support to apply fertilizers at the right time and achieve greater efficiency in each phenological stage of the plant, in addition to adequate equipment and storage, among other factors”, points out Schiavo.

There are three main types of fertilizers: chemical, mineral and organic. Each of them has different characteristics, which influence their usability by the farmer.

Chemical fertilizers - These are the most common in modern agriculture. In general, they contain a combination of nitrogen, phosphorus and potassium (NPK) nutrients and are sold as powder or liquid. “One of the advantages of using this type of fertilizer is that they are easy to apply and generally have a high nutrient content. This is important, for example, when crops need to be replenished with nutrients more quickly,” explains Schiavo. “However, they can be harmful to the environment and to crops if used excessively or if they are not applied correctly. Many producers wait until the harvest to fertilize the soil, believing that adding more fertilizer will produce faster, when the result is exactly the opposite,” he adds.

Organic fertilizers - These are made from manure, worm humus and compost. They provide nutrients gradually, helping to build fertility and also improve soil structure. “The use of this type of fertilizer generally contains fewer nutrients than chemical fertilizers and, therefore, can take longer to produce results,” points out the executive.

Mineral fertilizers - These are produced through the extraction process of rocks, which can be phosphate or potassic. Through industrial practices, the nutrients responsible for stimulating plants and making crops more productive are extracted.

Brazil has gone from being the country of four decades ago that imported food to feed its population to becoming the “breadbasket of the world”, which feeds the entire globe. This major change in the scenario is due to the positive impact of several technologies used in agriculture, including the use of fertilizers.

“The use of soil as a resource for sustainable agricultural production favors the integrity of the environment, preventing its physical, chemical and biological degradation. The rational use of fertilizers also has a positive impact on mitigating the degradation of cultivated soils, in addition to promoting the maintenance of their health and ensuring the sustenance of humanity”, concludes Schiavo.

Devastated areas are comparable to the size of the state of Paraíba, leading rural producers to seek alternatives to deal with losses

Brazil recorded almost 70,000 fire outbreaks in August, according to the National Institute for Space Research (INPE), which affected crops, pastures, and forest areas, affecting fauna and flora in several regions and biomes. The area burned in the month is comparable to the size of the state of Paraíba or the entire Costa Rica, according to data from Mapbiomas. For rural producers, the economic losses are of equal proportions, as in the case of sugarcane in São Paulo, which has already totaled losses estimated at R$1 billion.

“The biggest losers from the fires are the rural producers,” revealed the president of the Parliamentary Front for Agriculture, Congressman Pedro Lupion (PP-PR).

The fires bring countless losses to rural producers, starting with the destruction of crops and pastures, which leads to loss of productivity and income. Soil degradation directly affects soil fertility and microbiological life, increasing replanting and recovery costs. Smoke and ash compromise the health of workers, plants and animals, and can harm the quality of the remaining products. These factors, combined, have a negative impact on the market, by creating a scenario of apprehension that paralyzes investments in the harvest and possible wear and tear on the relationship between suppliers and customers.

“Given the impacts on agribusiness, it is important that technology becomes an indispensable ally for the sustainability of the sector, helping rural producers in these challenging times”, highlighted Welber Sant'Ana, CEO and founder of Agro Atlas, a leading network in technology services that offers Clima Web, a tool that supports rural producers, promoting more profitable, efficient and sustainable agriculture.

Clima Web Tool - Agro Atlas

Climat Web is made up of climate intelligence stations designed to optimize decision-making through precise real-time monitoring, weather forecasting and historical recording of meteorological data on rainfall, temperature, humidity, wind speed and direction, solar radiation and reference evapotranspiration. This data is made available to producers through an intuitive and transparent online platform, helping them to plan planting, irrigation and harvesting assertively, in addition to preventing losses related to adverse weather conditions.

The innovative and effective solution, already used throughout the country, provides key information for preventing, managing and recovering from the impacts of fires. “By integrating these advanced technologies into their production systems, farmers are better prepared to face climate challenges safely,” says Sant’Ana.

In view of the alarming increase in fires, Congress and the federal government have intensified discussions on strengthening actions to combat fires and restore degraded areas, as well as curbing their actions and increasing punishments for arsonists with the aim of protecting the environment and agribusiness.

Mapa publishes Interministerial Ordinance defining 11 new agricultural attaché positions

The Ministry of Agriculture and Livestock (Mapa) published this Friday (6) the Interministerial Ordinance Mapa/MRE nº 18. The document contains the definitions of the 11 new Brazilian diplomatic representations abroad that will have agricultural attachés.

The future installations will be in the following countries: Algeria, Bangladesh, Chile, Costa Rica, United Arab Emirates, Ethiopia (including the African Union, Djibouti and South Sudan), Philippines (including the Marshall Islands, Micronesia and Palau), Iran, Malaysia (including Brunei), Nigeria and Turkey.

With the expansion, Brazil will have seven agricultural attachés in embassies in Africa and will strengthen its presence in important economic partners and potential markets. The objective is to expand opportunities for the national agricultural sector.

“The new attachés reflect the recognition of the importance of agribusiness and its greater insertion in the international market for Brazil. With the new positions, we will further enhance opportunities for the sector, generating jobs and income for Brazilians, mainly due to the opening of markets”, pointed out the Minister of Agriculture and Livestock, Carlos Fávaro.

In July, the Federal Government had signed the presidential decree authorizing the increase of agricultural attaché positions from 29 to 40. This increase in number was the largest since the position was created in 2008 by Decree No. 6,464, since they are being implemented all at once.

Agricultural attachés perform advisory functions with Brazilian diplomatic representations abroad. Their main activities involve identifying trade, investment and cooperation opportunities for Brazilian agribusiness. To this end, they maintain dialogue with representatives of the public and private sectors, relevant opinion makers in civil society and academia.

There are currently agricultural attachés in the following locations:

-South Africa

-Germany

-Angola

-Saudi Arabia

-Argentina

-Australia

-Canada

-China (two attachés)

-Colombia

-South Korea

-Egypt

-United States of America

-France (Brazil's Delegation to the International Economic Organizations based in Paris)

-India

-Indonesia

-Italy (Brazil's Permanent Delegation to the Food and Agriculture Organization of the United Nations and to International Organizations)

-Japan

-Morocco

-Mexico

-Switzerland (Brazil's Delegation to the World Trade Organization and other economic organizations in Geneva)

-Peru

-United Kingdom

-Russia

-Singapore

-Thailand

-Belgium (Brazil's Mission to the European Union in Brussels, two attachés

-Vietnam.

First biofertilizer registered in Brazil reaches the milestone of 20 million hectares treated

Vorax was launched worldwide by Rovensa Next Brasil in 2019 and is now exported to Europe and more than 20 other countries. The product is the result of biological fermentation and had to meet a series of requirements.

When the research team at the current Rovensa Next conceived Vorax in 2013, the true potential of the organic products market was still unknown. Eleven years later, the first and most recognized biofertilizer registered in Brazil is a sales success even in Europe and in more than 20 other countries, reaching the milestone of 20 million hectares treated.

Initially, the product created 100% with national technology had been developed to serve as a base for amino acids in fertilizers, a raw material previously extracted from by-products of the food industry. However, the successive increases in productivity recorded, in the range of five, ten, 15, 20% or more, in various crops, began to intrigue researchers and producers. Even so, the path to being recognized as a biological fertilizer was not easy.

It took three years to develop the initial formulation, another three to put it definitively on the market (in 2013) and another five to obtain registration as a biofertilizer with the Ministry of Agriculture and Livestock, at the end of 2018, after several studies scientifically proved its effectiveness. In 2019, after its international launch, held in Barcelona, ​​Spain, during the World Biofertilizer Congress, Vorax gained worldwide recognition under the names Biimore and Quikon, due to the trademark and patent registration policies of some countries.

“It was an arduous battle, lasting several years, to put together a sufficiently robust dossier to obtain registration. At the time, no company had been able to prove that its product delivered benefits related to what could be defined as a biofertilizer,” recalls Rafael Leiria Nunes (pictured above), Director of Supplies and Operations at Rovensa Next Brasil. There were different concentrations and formulations, hundreds of field tests, research studies and master’s and doctoral theses, including the most recent one that was featured on the cover of the journal Molecular Omics.

The article published in the most prestigious scientific journal in England investigated, last year, the response of stress tolerance mechanisms in bean plants after being treated with Vorax, through metabolomic analysis – an area still little explored by scientists worldwide. In short, the research concluded that the concentration of specific metabolites increased in the bean plant after application of the biostimulant, correlating them with increased tolerance to adverse conditions such as lack of light or water deficiency.

The metabolite is a low molecular weight molecule and can be divided into two groups: primary and secondary. The primary ingredients would be amino acids, enzymes, vitamins and organic acids – the active ingredients in Vorax – and the secondary ingredients would be related to anticancer, antibiotic and antiparasitic effects. Rovensa Next's biofertilizer is obtained from the fermentation of organic plant substrates with an exclusive strain of bacteria.

“The main change in Vorax over the last five years, with the product's global expansion in mind, was to work with organic plant substrates, because this would guarantee the absence of traces of agrochemical residues used in the crop. Thus, there would be no risk of imposing barriers in Europe or in very demanding markets, such as Brazilian fruit and coffee, because it involves export products”, explains Leiria.

According to the director of Rovensa Next Brazil, Vorax's differentiated mode of action is noteworthy, from the plant's physiological point of view, even when applied in small doses. “This was a surprise at a certain point, in addition to being a major sustainability advantage, since just a few milliliters can treat several hectares”, reports the specialist. To date, Vorax is recommended for ten crops and the average dosage is 30 ml/ha, which can reach 100 ml/ha, depending on the species. This dosage is ten to 40 times lower than that of traditional stimulants.

Sustainable even in packaging – To impress producers with regard to Vorax's differentials, the company innovated in its presentation. Initially, the packaging was the same as that used for all agrochemicals, but in gold, whose color, tone and shine were a real challenge. It later evolved into the current one, which is more aesthetically pleasing, more resistant, with holograms on the label, in addition to being produced from 100% recycled material. This work began in partnership with Campo Limpo, a Brazilian reverse logistics program of the National Institute of Processing and Empty Packaging (INPEV).

Data from the agency indicate that recycled packaging, as is the case with Vorax, it generates 70% less CO2-equivalent emissions compared to the manufacturing process of a new one. “Vorax has a sustainable appeal for agriculture; it is fully aligned with the company's ESG goals and with what society itself expects from more technologically advanced agricultural inputs, in terms of efficiency, results, respect for the environment and protection of human health”, concludes Leiria.

Brazil has already recorded the highest number of forest fires in the last 14 years in 2024. The fires devastated areas of several biomes in the country, including the Amazon, Pantanal and Cerrado. The smoke spread throughout the country, covering several cities in different regions.

In São Paulo alone, more than 59 thousand hectares were burned in sugarcane planting regions - an area equivalent to the American city of Chicago. The Federal Police are investigating suspicions of arson that started in different locations and spread quickly through extremely dry vegetation, in a region where there has been no rain for weeks. Authorities reported that high temperatures, together with strong winds and low humidity, became an explosive combination.

It is not only in São Paulo that the fire finds a favorable scenario to spread. The country is also facing the worst drought in history, according to Cemaden (National Center for Monitoring Natural Disasters). Data from WWA (World Weather Attribution), a group of scientists from different countries that investigates the effects of climate change on extreme weather, indicate that June in Brazil was the driest, hottest and windiest month since records began in 1979.

In August, the states that recorded the most fires were Mato Grosso (more than 10,400), Pará (9,600), Amazonas (7,700), Mato Grosso do Sul (4,200) and São Paulo (3,400). The Amazon and the Pantanal were the most affected biomes.

A report released in early August by WWA states that fires in the Pantanal are 40% more intense due to climate change. The data corroborates this analysis, since average annual rainfall has been decreasing continuously in the biome for more than 40 years.

"These 'megadroughts' are becoming more frequent and serious," says Carlos Peres, an ecology and conservation specialist at the University of East Anglia in the United Kingdom. According to the Brazilian, about three-fifths of the country is becoming drier.

Drying forest

In June, a study by the non-governmental organization MapBiomas, a network involving universities, NGOs and technology companies that conducts studies to monitor changes in land cover and use, revealed that the Amazon and the Pantanal are threatened by this loss of water.

The Amazon, for example, began 2023 with a water surface above the historical average and, months later, the biome faced an unprecedented drought. The Negro River recorded the lowest level since its level began to be monitored, 100 years ago.

Proportionally, the Pantanal was the biome that dried out the most since 1985. In 2023, the annual water surface recorded was 3,820 km², which represented a 61% reduction in relation to the historical average. In addition to the reduction in the flooded area, the time during which this land remains submerged also decreased.

The son of a cattle rancher, Peres grew up in the 1960s and 1970s in Pará. During his life, he saw the Amazon shrink by 20%. Part of what remains of the forest ends up being increasingly affected by fires. "Twenty-five years ago, forests in the Amazon, even if they were on sandy soils or in areas affected by seasonal droughts, did not burn unless there was some type of human disturbance, such as logging," says Peres. "But that has changed."

The expert says that consecutive droughts and shorter rainy seasons do not give the soil enough time to replenish its water supply, which makes vegetation more vulnerable to fires.

Luciana Gatti, who leads a team of researchers at the National Institute for Space Research (INPE), believes that the problem is only getting worse. "We are accelerating climate collapse," she told DW, noting that deforestation has contributed more than global warming to increasing temperatures in the Amazon. "The forest that remains is no longer the same. It is as if the Amazon is sick."

Trees and other plants act as climate regulators by absorbing carbon dioxide and releasing vapor into the air through a process called evapotranspiration. Gatti says that in Brazil, water evaporated from the Amazon and the Pantanal acts as a "climate protection layer" that helps cool the atmosphere. However, with the constant increase in deforestation and fires, this layer is weakening.

In a 2021 study published in the journal Nature, Gatti wrote that parts of the southeastern Amazon are already starting to act as CO2 emitters, rather than absorbing greenhouse gases as usual. She explains that although deforestation has decreased in recent years, forest degradation has worsened due to fires and other factors.

The problem is that the fires are becoming increasingly uncontrollable. Luciana Gatti, from INPE (National Institute for Space Research)

Fires and droughts more frequents “These extreme events are becoming more frequent,” says Julia Tavares, a Brazilian ecologist and researcher at Uppsala University in Sweden. In a 2023 study, she and her colleagues analyzed how different parts of the rainforest reacted to hotter and drier conditions, and concluded that some regions of the Amazon are increasingly unstable. The NGO World Resources Institute reports that forest fires around the world are getting worse, destroying twice as many trees as they did 20 years ago. A report by the UN Environment Program predicts that the occurrence of these fires is expected to increase by 30% by 2050. Tavares says that although climate change is not directly causing the fires in Brazil, spontaneous flames are quite rare in tropical climates. “They are caused by people; by human actions that are reinforced by climate change, which create better conditions for fires to spread.” The researcher highlights the vast swaths of land that have been deforested, often by farmers who set fire to vegetation using a technique called slash-and-burn agriculture, constantly removing parts of the untouched forest.

“Things are changing very quickly,” says Peres, explaining how the increase in fires and droughts is putting food and water security at risk, eliminating biodiversity and harming health.

The researcher warns that each time the forest burns, it paves the way for “more frequent and intense fires the next time,” as more vegetation dies and becomes fuel for forest fires. “When the forest burns for the third time, we will no longer have any forest,” says Peres. “The damage that this causes, both in terms of biodiversity loss and carbon storage loss, is enormous.”

Gross public debt stands at 78.5% of GDP in July, central bank says

Brazil's gross public debt as a proportion of GDP reached 78.5% in July, up from 77.8% the previous month, the central bank said on Friday. In the month, the consolidated public sector recorded a primary deficit of 21.348 billion reais. Economists polled by Reuters had expected a deficit of 5 billion reais.