Brazil’s agriculture sector has fundamentally transformed over the last 40 years — from a net importer to a net exporter — thanks to changes in government policy, agricultural innovation, and the hard work of farmers, Antonio Cabrera, former Brazilian Minister of Agriculture, shared during a presentation on Feb. 2 at Aprosoja’s headquarters in Cuiabá, Mato Grosso.
Historically, a closed economy, Brazil opened its export markets for agricultural goods in the 1990s, following public concerns of the country importing contaminated products from Europe, Cabrera noted.
As it expands markets, Brazil faced tariffs on its soybeans, beef, and other exports from other countries, Cabrera said. The EU-Mercosur trade deal is expected to reduce tariff barriers, but questions remain about the deal’s implementation, especially around sustainability reporting.
Since opening its markets, Brazil has grown its grain production from 58 million tons to approximately 360 million tons today, Cabrera shared. The Brazilian state of Mato Grosso is the third largest soybean-producing region globally and is expected to produce 47.18 million tons in the 2025/2026 harvest, down slightly from the 50.89 million tons in the previous year, according to IMEA data.
“The revolution of soybean in Brazil is a revolution also in poultry and beef,” Cabrera noted. The state of Mato Grosso is the largest cattle producer in Brazil, accounting for 13.8% of the country’s cattle production and 2.7% of the world’s, according to Indea, IBGE, and USDA data.
Brazil’s agriculture sector achieved all this by using technology, including biologicals, that allows food producers to do more with fewer resources, Cabrera explained. Most (55%) Brazilian farmers are using biologicals, compared to 6% of U.S. growers, according to a 2022 McKinsey survey of 5,474 farmers.
“Behind every kilo of ... animal or vegetable protein here in Brazil, there is a lot of technology,” Cabrera emphasized.
Are Brazil’s persistent infrastructure challenges holding it back?
Infrastructure challenges remain a persistent problem for Brazil’s agriculture sector, hindering the country’s ability to transport agricultural goods, Cabrera explained.
Brazil has approximately 30,000 km of railways, compared to 293,000 km in the U.S., according to the National Association of Railway Carriers. Mato Grosso’s infrastructure is particularly challenged, with only 200 km of railway that runs from the bottom to the center of the state.
Brazil’s agriculture sector is advocating for a railroad expansion that would lay tracks next to existing roads to bolster the transportation of grains in Mato Grosso. The plan faces resistance from non-government agencies and faces a final decision from the country’s supreme court.
Rumo S.A. received $410 million for the first phase of the Mato Grosso Railway, which will add 743 kilometers of railroad connecting Lucas do Rio Verde and Rondonópolis.
