Brazilian Agribusiness Surges Over 20 Years, Matching Argentina’s GDP

The record harvest of more than 300 million metric tons expected in Brazil this year shows the scale agribusiness has reached within the Brazilian economy. Between 2002 and 2022, the country’s agricultural GDP rose, in inflation-adjusted figures, from US$122 billion to US$500 billion—the equivalent of Argentina’s GDP.

According to economist José Roberto Mendonça de Barros, Brazilian agribusiness has experienced extraordinary growth over the past 40 years, especially the last 20. “Unlike what happened in urban sectors, whether industry or services, agribusiness growth is persistent, and that is agriculture’s first lesson for us. It is always more important to keep growing than to grow sharply for a few years and decline afterward. This is sustainable growth, making agribusiness highly competitive.”

Experts attribute that growth to investment in research and public policies for farming, which have led to successive agricultural production records. According to Brazil’s National Supply Company (Conab), the country is expected to exceed 300 million metric tons of grain this year, consolidating its position as the world’s third-largest grain producer, behind China and the United States.

In 20 years, the grain harvest increased from 120.2 million to 310.6 million metric tons, a reported increase of 258%. Meanwhile, planted acreage rose from 43.7 million to 76.7 million hectares, an increase of 76.5%. The figures show that production grew three times faster than the area under crops, driven by productivity gains from investments in research and technology.

Soybeans are the leading crop in Brazilian fields. This oilseed adapts to the country’s different microclimates and is grown in both the colder far south and the tropical north and northeast. Brazil overtook the United States to become the largest soybean producer and is also the leading exporter.

While the 2002/03 season produced 47.4 million metric tons of soybeans, the current harvest is expected to produce 152.9 million, a reported increase of 322%, according to Conab. Corn, grown in rotation with soybeans, increased by a reported 260%, from 47.4 million to 123 million metric tons.