The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Private finance ploughs into Brazilian agriculture

Cotton harvest / cotton harvest
Photo: Getty Images

Brazil’s agribusiness sector is booming on the back of sky-high commodity prices. The public banks that have long financed the sector now face a wave of new private-sector competitors.

“Not many years ago, when a farmer faced a problem, he could sell his pick-up truck and that would solve his problem. But, as the money that’s involved in production has gone through the roof, if there’s a cash flow shortfall, the sale of a pick-up isn’t going to bridge the financing gap. It could be R$2 million, R$10 million – R$20 million.”

Itaú BBA's director of agribusiness, Pedro Fernandes, makes a reasonable point about increased scale in Brazil’s booming farming industry. Where once a pick-up truck was a large nominal expenditure for a farmer, today a cotton harvester costs around R$6.9 million ($1.3 million). Genetically-modified seeds cost huge multiples of those that were planted a decade ago – offering much higher and more resilient yields but adding to the jump in costs which have risen along with revenues.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

Tags

Rob Dwyer head.jpg
Latin America editor
Rob Dwyer is Latin America editor. He has been a financial journalist since 1997 and has worked in London, New York and São Paulo, Brazil, where he is now based.