Brazil to reap bumper agribusiness harvest

Published on:

The development of the cerrado into arable land will benefit Brazil far more than its oil discoveries.

When big reserves of pre-salt oil were found offshore Brazil, then-president Lula compared the discovery to a lottery win. However, perhaps the real prize has been sitting inland all the time. In many ways, Brazil’s agricultural industry looks a far better bet than its petrochemical dalliance.

Consider demand. In an increasingly populated and richer world the demand for grains is set to outstrip GDP growth for years to...