Agriculture in Brazil has been an lucrative industry over the years. The current production is between 80 million and 160 million tons, and this figure could double in the coming years. Other than exporting sugar, orange juice and coffee globally, it also competes with the US to be the largest soya bean exporter. Besides, devaluation of its currency against the dollar will further stimulate this sector through reducing the rise in costs.
Crop yield this year has registered a 15 percent increase, whereas exports has amounted to USD100 million. US, being one of Brazil’s stiff competitors, only exported 18.58 million tons in comparison to Brazil’s 22 million tons for the 2012-13 crop year. However, US is poised to stage a comeback later this year as the top corn exporter. With the government recently allocating USD68 billion to this sector, it remains to be seen whether Brazil’s economy will continue to register positive growth.
Spire Research and Consulting is the leading research consultancy in global emerging markets. Spire's competitive advantage lies in its ability to deliver actionable intelligence on the external business environment in support of its clients’ strategic decision-making in marketing and business development. Spire's clients include 50 Global Fortune 1000 companies and government agencies in 15 countries. For more information, please visit www.spireresearch.com.