Why Investors are rushing to invest in Agribusiness in Brazil
After experiencing its worst recession ever, Brazil’s economy is slowly but steadily rising back to the surface. If you were to imagine it as a moving train gaining momentum, you would have to consider agribusiness as its locomotive. The country’s business of agricultural production is the only sector to thrive for over a decade now in spite of the economic meltdown going on all around it.
At the moment, Brazil enjoys a bright agribusiness outlook for the years to come. A consistent GDP growth coupled with economic development and an increase in domestic consumption should set the perfect ground for investment. Foreign companies especially can benefit from the current status quo of the Brazilian economy and enhance their portfolio by investing in the agro market here.
Brazilian agribusiness in a nutshell
A report from the Brazilian Institute of Geography and Statistics (IBGE) shows that as much as 41% of the country’s surface is subject to agricultural development. With a cultivated area of more than 65 million hectares, Brazil is currently one of the largest agro markets in the world.
The main agricultural crops include sugarcane, green maize, and soybeans. Brazil is also the largest exporter of coffee and beef, as well as an international benchmark grower of poultry, pork, and corn.
Agribusiness in Brazil is quickly developing and attracting capital from both local financiers and foreign investors. In fact, the industry is putting in a considerable effort to reduce the staggering 106 million hectares of undeveloped fertile land across the country, which is also the equivalent of 10% of Europe.
The appeal of significant ROI
The good news is that Brazil is welcoming a much-needed modernization of its agricultural sector. The last decade has seen an increase in sales for tractors and harvesting machines across the country. Young entrepreneurs and university alumni are shifting their attention from city life towards investments in agribusiness, and partnerships with foreign investors who can bring in a significant capital are increasingly popular.
One of the leading motivations for overseas capitalists to invest in the Brazilian agribusiness is the appealing return of investment (ROI). Whether you choose to finance sugarcane plantations or soybean farms, you have a good chance of taking part in a profitable deal with long-term substantial revenue.
How to enter the Brazilian agro market
Investing in the agribusiness in Brazil puts you in an elite group of international investors that look to enhance their business portfolio. While the industry is ripe for receiving external capital, you still need a reliable local partner to ease the accommodation process in the Brazilian economy and to ensure that your development plans are within the country’s legal framework.
Wide Brazil is a professional team of expert consultants who offer high-quality services for foreign investors looking to take part in agribusiness in Brazil. We use our extensive expertise in commercial, legal and accounting sectors to provide you with the best possible guidance for your business.
Our company puts an emphasis on 100% project customization and offers tailor cut solutions for your commercial endeavor. We employ all the necessary resources to help your business develop safely and quickly become a renowned presence in the Brazilian agribusiness.