Brazil’s Growing Agriculture Sector is Ideal Market for U.S. Exporters

June 17, 2015
Tom Hanson is a Commercial Officer for Commercial Service Brazil, posted in São Paulo.

Commercial Service (CS) Brazil is letting the world know about our top industry prospects for U.S. exporters in Brazil. This post focuses on the Agriculture Equipment industry. Brazil leads the world in the production and/or exporting of numerous agricultural products, including soybeans, sugar, coffee, beef, chicken, orange juice, and corn.

The Brazilian growers are an ideal target market for U.S. exporters of sophisticated, high-technology self-propelled machinery; post-harvest machinery, including field refrigeration units/storage for tropical fruits; GPS and precision devices; poultry equipment; irrigation equipment; and fertilizers. Brazil is also one of the few countries still capable of increasing its planted area. Large portions of Brazil’s cerrado (savannah or prairie lands) are still available for cultivation, leaving considerable room for growth of the country’s commercial agricultural sector.

Brazil has world-class research and development labs and graduate-level studies, which signals the development of new enterprises that work to boost crop yields through increased efficiency.  The United States and Brazil have a growing bilateral trade relationship in agribusiness. Brazilian growers and land owners have come to rely upon the quality and innovation of marquee brands such as John Deere and AGCO (Massey Ferguson/Valtra/GSI Agromarau), which have been a part of many Brazilian communities for decades.

Brazil has a large and diversified economy that offers U.S. companies many opportunities to partner and to export their goods and services, and U.S. exports are increasing rapidly. Doing business in Brazil requires intimate knowledge of the local environment, including both the direct as well as the indirect costs of doing business in Brazil (referred to as “Custo Brasil”). Such costs are often related to distribution, government procedures, employee benefits, environmental laws, and a complex tax structure.

The team at CS Belo Horizonte is standing by to guide U.S. exporters on uncovering new markets in the agri-business sector. For more information about export opportunities in this sector, please review the Brazil Country Commercial Guide.