🧑‍🌾 Brazilian farmers won't miss 2024

Hello! Welcome back to Brazil Agro, brought to you by The Brazilian Report. Every Monday, we’ll go into detail about Brazil’s powerhouse agribusiness sector. This week, we do a deep dive into the sector’s results this year and forecasts for 2025. 

If you have any questions about this newsletter, or topics you’d like to see covered in future issues, you can reach me at [email protected]. 

Extreme climate events hindered agricultural production in 2024 

An unprecedented drought dried up nearly two-thirds of Brazil, wildfires raged across its landscapes and one state endured its worst floods on record. The extreme climate events that gripped the country this year did more than shock its people — they also delivered a sharp blow to Brazil’s agricultural sector, a crucial driver of its economy.

After achieving record results in 2023, agricultural activity contracted in 2024, even as the broader economy showed resilience. While Brazil’s gross domestic product grew at an annualized rate of 4% in Q3, agriculture shrank by 2.9%. 

Analysts expect some recovery in Q4, driven primarily by livestock production, but the sector is still projected to close the year in decline. The outlook for crops underscores the challenges. 

The Brazilian Institute of Geography and Statistics (IBGE) estimates a 6.7% drop in the production of grains, legumes and oilseeds compared to 2023. Looking ahead, 2025 offers a glimmer of hope: the IBGE anticipates a 7% rebound, enough to offset this year’s losses.

🚜 Brazil Agro