Brazil's Momentum as a Global Agricultural Supplier Faces Headwinds

Brazil, the fifth largest country in area and population and the largest in terms of arable land, is among the few countries with potential to increase agricultural productivity. Over the past two decades, Brazil has been consolidating its position as a major producer of agricultural commodities and related food products as well as a supplier to international markets. It is now a top-5 producer of 34 commodities and is the largest net exporter in the world. Continuing trade expansion and diversification of markets and products remains at the core of Brazil’s agricultural growth strategy. However, increases in fuel and fertilizer costs, credit and storage limitations, an overburdened port and transport system, and pressure to preserve the environment are challenging the long-term growth of Brazilian agriculture.