Agriculture in Brazil is expected to register a CAGR of 5.9% during the forecast period (2021-2026).
Due to the COVID-19 pandemic, Agriculture in Brazil suffered from farm labor shortage during the harvesting and input supply crisis, these, in turn, hampered the usual production of the country. The repeated lockdowns and shutdowns of processing units affected the supply chain and limited trade movements to other countries. Moreover, lack of storage facilities led to the major quality loss of the country's produces.
Brazil is a major player in the global agricultural trade, accounting for 7.3% of global agricultural exports. The sector represents 14.0% of the country’s gross domestic product (GDP), and the whole agricultural chain accounts for 28.0%, employing almost 18 million people. The most significant products in the sector are rice, maize, soya, sorghum, sugarcane, potato, corn, tomato, watermelon, and onion.
Key Market Trends
Increasing Adoption of Genetically Modified Crops
According to Genewatch (2015), Brazil is the second-largest country, with 44.2 million hectare of cultivated area under GM crops, in the world. The GM crops cultivated in Brazil are soybean, maize, and cotton, with traits, like insect resistance using a toxin from bacteria Bacillus thuringiensis (Bt), herbicide resistance (Ht), virus resistance (VR) and Ht-Bt, in case of both. The Brazilian National Biosafety Technical Commission (CTNBio) approved the commercial use of GM sugarcane that is resistant to pests, marking a milestone in the highly competitive sugar industry in Brazil, which represents around 50% of the world trade.
Rising Production of Vegetables in Brazil
Brazil is one of the largest vegetable-producing countries, globally. Technological advancements, increasing population levels, strong economic growth, good availability of vegetable products, expanding local production and high arable land is augmenting the Brazilian vegetable market’s growth. In 2019, the total vegetable production in Brazil was 8.85 million metric ton. Brazil is a highly urbanized country, consisting of only 15.0% rural population. This resulted in the adoption of modern health-conscious diets, which include a variety of vegetables; is driving the demand as well as the production of vegetables in Brazil. Onions, garlic, tomatoes, cucumber, peas, capsicum, mustard, and carrots are some of the major vegetables grown in Brazil. Additionally, organic vegetables that are free from residue are also grown in the country.
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