Is Australia Ready for the Competition? | Article

The Timing is Right for Rio, is Australia Ready for the Competition?

While Australian agriculture is renowned for its high quality product, traceability and food safety, Brazil is fast catching up.

Agriculture | Corporate Finance & Restructuring

August 26, 2016

Agribusiness Fields

Agriculture is especially important to Brazil’s economy, showing growth in 2015 despite overall economic contraction and political instability. According to the Brazilian Institute of Geography and Statistics, in 2015, Brazil's GDP shrank by 3.8%, while the Agriculture sector grew. In the early 1990s, Brazil had stabilised its economy and large financial investment helped the country to expand into agricultural technology. Today, farms from small to large producers are highly mechanised, achieving efficiencies and lower cost production.

The timing is right for agriculture in Brazil, with significant opportunity to attract investment and deliver increased exports to new and existing markets. Recently it was suggested that the government might be in discussions to ease farm land foreign ownership restrictions. If this happens, over the coming months and years there is likely to be a significant increase in investment into the sector, providing rapid growth.

Two commodities we have seen the rise of in Brazil firsthand are beef and coffee.

Brazil leads the world in exports for many commodities. The country is working to position themselves as leaders in the world cattle industry by 2020. The expectation is that domestic production of red meat will supply 44.5% of the world exports by then.


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