Brazil
October 27, 2012
Many opportunities for your company in a market that grows at very high rate
Brazilian agribusiness has had a significant increase in the past few years. For example, the grain production in Brazil increased from 96 to 160 million tons in the last 10 years. During the same period the planted area increased only by 25%, reaching approximately 50 million hectares.
The technology used in agribusiness resulted in an important growth in volume rather than just in area. The combination of better cultivars, agricultural input and crop management practices increased the yield in several crops in Brazil.
In 2012 the agricultural sector and agribusiness represented approximately 23% of the Brazilian GDP (Gross Domestic Product), and created an expressive number of new jobs, contributing for the country’s economy.
The several different segments that form the agribusiness sector in Brazil remain in a top position in exportation. This solid growth of Brazilian agriculture created a large demand for agricultural supplies such as: fertilizers & plant nutrition products, agrochemicals, seeds, packaging materials, farmers’ equipment, etc.
The seed segment, in particular, had a very significant growth in the country. The Brazilian seed production increased from 1.6 million tons in 2001/02 crop season to almost 3 million tons of seeds in 2010/11. For the next crop season, 2011/12, the estimated increase is another 5%. In addition hybrids have been used instead of open pollinated varieties.
In the ISF publications, Brazil is considered to have a seed market of approximately USD 2.6 billion, price seed companies practice with dealers and distributors.
The Brazilian seed market value is much higher than this at price paid by growers. In a preliminary calculation done by MNagro, the corn and soybean seed market add up to USD 2.5 billion, at price paid by farmers. Besides these two species, we have many others such as wheat, cotton, rice, sorghum, sunflower, dry beans and many more that have an important market value.
The recent data published on vegetable seed market indicates a value between USD 200-300 million, at price paid by growers.
The forage seed market estimates USD 400 million, based on UNIPASTO information. Grass seeds had a growth based on the expansion of beef cattle business, due to the fact that Brazil became a key player on meat exportation the past few years. In addition, Brazilian grass (forage seeds) has being exported a lot more recently.
In segments like rice, the utilization of hybrids increased, as well as in other segments. The expectations are that farmers decrease the use of "saved seed" and start using improved seeds. Wheat is another crop in which private companies have gained market share.
Sorghum grain and forage had a good expansion in last two years. More recently sweet sorghum was introduced in Brazil to be a potential crop to complement sugar cane in ethanol production.
MNagro started its activities in March, 2007 to support companies that want to invest in this promising segment. The experience MNagro has in the seed business can help your company in many different ways.
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