Key Takeaways
- According to McKinsey, two-thirds of Brazilian farmers expect stable or declining profits in 2024, with extreme weather cited as the biggest challenge.
- Productivity remains a top priority, with 60% of farmers focusing on it to boost profitability.
- McKinsey highlights Brazil’s leadership in sustainable practices, with high adoption of bio-based products and regenerative techniques.
- Agtech adoption is growing, but cost barriers persist, and digital payments are on the rise.
What challenges do Brazilian farmers face?
McKinsey’s survey of 750 Brazilian farmers reveals widespread challenges, including crop failures, commodity price declines, and extreme weather events like droughts and wildfires. Two-thirds of farmers anticipate stable or declining profits in 2024, with extreme weather overtaking input costs as their primary concern. To address these challenges, 60% of farmers prioritize productivity, underscoring Brazil’s long-standing focus on agricultural innovation.
How are Brazilian farmers advancing sustainability?
The McKinsey survey highlights Brazil’s global leadership in sustainable agriculture. Over 60% of farmers use bio-based inputs such as biostimulants and biofertilizers, a rate more than double that of Europe and the United States. Practices like no-till farming and crop rotation are also widely adopted, improving productivity while reducing costs and emissions. However, challenges in monetizing carbon credits persist due to difficulties proving additionality and permanence.
What role does technology play in Brazilian agriculture?
Agtech adoption is accelerating in Brazil, with the country ranking second among surveyed regions. Farmers focus on technologies for pest and disease control, though cost barriers, including implementation and maintenance expenses, remain a challenge. Digital payment adoption has doubled to 54%, driven by younger and tech-savvy farmers, according to McKinsey’s findings.
Brazilian farmers are navigating significant challenges while leveraging sustainable practices and technological advancements. As McKinsey’s report illustrates, their focus on productivity and resilience is shaping the future of Brazilian agriculture.
Read the complete report by McKinsey here.
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