Jul 9, 2025
By Victoria Moura, Agritecture | Post–World Agri-Tech South America 2025 Recap
At the World Agri-Tech South America Summit in São Paulo, one message resonated above all: Brazil’s agriculture is evolving into a new agri-culture—one defined not merely by yields and exports but by how technology, sustainability, and collaboration converge to future-proof food systems in a climate-challenged world. Brazil already feeds 10% of the global population while using land with remarkable efficiency, having increased its agricultural production by nearly 600% over the past 40 years while expanding its planted area by only around 100% (Embrapa, 2023). However, to maintain its competitiveness while meeting growing international demands for traceability, quality, and environmental stewardship, systemic transformation is essential, and technology will be at the heart of this transition.
Building the Right Tech for Real Farmer Needs
Brazilian agrifoodtech funding surged in early 2025, with US $76.8 million raised in Q1 alone—a 32% increase from the previous quarter and an 85% year-over-year rise—positioning Brazil to capture 55% of all Latin American agtech funding in 2024, despite representing just 1.5% of global agtech investment (AgFunderNews, The Brazilian Report). Additionally, consultancy Liga Ventures reported that Brazilian agtech startups received over BRL 1 billion (~US $177 million) in 2024, the second-highest year on record.
This momentum reflects growing confidence in agtech’s potential to drive transformation in Brazil’s agriculture. Yet, as emphasized during summit discussions with Embrapa, Danone, and ABAG leaders, a critical disconnect remains: many startups focus on developing sophisticated, capital-intensive technologies designed to attract investors, while often overlooking the urgent, practical needs of farmers on the ground. This gap is particularly relevant in Brazil, where over 80% of the country’s more than 5 million agricultural establishments are smallholder farms (IBGE Agricultural Census, 2023).
Smallholder farmers require affordable, low-complexity technologies that can address critical challenges such as irrigation, pest management, and soil health while enabling adaptation to climate variability and water stress. For example, a 2020 Embrapa survey found that only ~3% of irrigating producers had properties over 1,000 hectares, while 64% irrigated less than 5 hectares, underscoring that irrigation in Brazil is predominantly practiced by small- to mid-scale farmers (Embrapa). Research by the World Bank (2024) highlights that prioritizing irrigation and basic mechanization in smallholder systems can increase yields by up to 50% while reducing labor demands and post-harvest losses by 30%.
Silvia Dávila of Danone highlighted this need for targeted, appropriate technologies, citing Danone's Flora Project as an example, which increased smallholder milk farmers’ incomes by 17% while reducing methane emissions by 40%. “Supporting farmers with the right tools transforms communities while advancing climate goals,” Dávila emphasized, underlining that impactful technology must be designed with, not just for, farmers.
A key discussion point arising from these insights is the need for startups and investors to collaborate with cooperatives, extension services, and local governments to design solutions that consider Brazil’s geographic and socioeconomic diversity while building viable business models for rural communities.
Integrating Technology Across the Supply Chain
Brazil’s agricultural supply chain is vast, complex, and costly, with logistics—including road and port expenses—accounting for 30–40% of the total cost of soybeans, according to a USP/Esalq study, with overall transport costs estimated to be 8–9 times higher than in the United States, significantly reducing competitiveness (Datamar News). Road transport, predominantly reliant on diesel trucks, forms the backbone of Brazil’s export logistics, leaving the sector heavily exposed to fuel price volatility and infrastructure bottlenecks.
Meanwhile, Brazil imports about 85% of its fertilizer needs, making input costs highly vulnerable to global price swings, currency fluctuations, and geopolitical disruptions (University of Navarra). During the World Agri-Tech South America Summit, Embrapa’s leadership emphasized that fostering local bioinput industries and expanding domestic fertilizer production are critical strategies to reduce Brazil’s vulnerability while promoting sustainability and climate resilience within the sector.
Otavio Lopes of EY argued for a paradigm shift: moving from a linear, reactive supply chain toward an interconnected, predictive ecosystem. “We need to transition from cost-focused to resilience-focused systems,” he noted, emphasizing the necessity for digital integration, real-time data visibility, and blockchain-enabled traceability across the supply chain to meet the evolving expectations of global markets and consumers demanding deforestation-free, ethically sourced products.
A critical insight is that technology integration must align with infrastructure development and policy frameworks, enabling supply chains to evolve into systems that are efficient, climate-resilient, and inclusive of smallholders, who collectively produce a significant share of Brazil’s coffee, fruits, vegetables, and dairy exports.
“Digitization in agriculture is not just about software adoption; it is about a cultural change within organizations. As an export leader, Brazil’s continued strength globally will depend on tech integration, digitalization, and innovation. With climate pressures, rising consumer expectations for quality, and tightening sustainability regulations globally, efficiency and traceability are not luxuries—they are prerequisites for remaining competitive.” (Victoria Moura, South America Representative at Agritecture).
Financing Innovation: The Role of Credit
Adopting technology and sustainability practices requires financing structures aligned with the realities of Brazil’s farmers. In its 2025/26 agricultural plan, the Brazilian government allocated a record R$78.2 billion to PRONAF, a 3% increase from the previous cycle. However, while credit lines for essential food production remain relatively low—around 2% for organic and 3% for staple crops—other lines, including some family-farming commodity and investment loans, now carry rates ranging from 5–6.5%, and even up to 8% in certain categories (Exame, 2025). These higher rates, introduced amid broader economic tightening, risk limiting access for low-income farmers who depend on affordable credit to modernize, invest in sustainable practices, and adopt new technologies.
Brazil’s rural credit system remains heavily dependent on public policy, but private financial institutions are increasingly stepping in to complement these efforts. As Bradesco’s Head of Agribusiness, Nadege Saad, emphasized during the summit, “credit is a tool, but without guidance and data, it becomes a burden rather than a solution.” This reflects a key point raised during the event: credit accessibility must be paired with technical assistance and digital tools to ensure effective capital allocation, improve productivity, and reduce default risks.
IFC specialists in 2024 further underscored that integrating climate-smart criteria and fintech innovations into rural credit structures can create a virtuous cycle of sustainability and financial resilience. This includes redesigning credit lines to incentivize eco-friendly practices—such as offering preferential rates or rebates for farmers adopting drought-resistant crops or efficient irrigation systems—and leveraging digital farm management and risk assessment platforms, enabling lenders to track crop conditions and climate risks in real time for improved credit decisions (World Bank Blogs).
Additionally, IFC and its partners are exploring carbon credit integration within rural credit programs, allowing farmers who adopt regenerative practices to generate tradable carbon credits that can supplement loan repayments or farm income, making sustainable investments more financially attractive (World Bank Blogs, Agreena). These blended approaches—linking financial incentives, digital monitoring, and carbon markets—can accelerate the adoption of sustainable practices while lowering the risk profile of loans by enhancing farm resilience and diversification.
This signals an opportunity for agritech startups and financial institutions in Brazil to collaborate on embedded fintech solutions, offering credit products tied to technology adoption for irrigation, bioinputs, precision tools, and renewable energy systems.
Automation and the Workforce: A Brazilian Perspective
Although Brazil has historically benefited from affordable and abundant rural labor, the reality is shifting. The rural population declined from 15.3% in 2012 to 12.7% in 2022 (IBGE, 2023), driven by rural-to-urban migration and aging demographics, with over 33% of farmers now above the age of 55 (MAPA, 2024). The lack of generational renewal is evident, with young people discouraged by legal restrictions on youth labor, limited infrastructure in rural areas, and a desire for urban employment opportunities. According to IPEA (2024), this trend risks a 12% reduction in Brazil’s agricultural workforce over the next decade if interventions are not made.
Furthermore, the high cost of formal employment due to CLT labor laws and taxes means hiring a worker can cost employers 100-150% more than the nominal wage (CNA, 2023). This structural burden pressures producers, making automation an increasingly attractive option.
Automation in agriculture is not about replacing labor—it’s about enhancing it. According to McKinsey (2024), automation can increase productivity by 25% while reducing operational costs by 15-20%, allowing workers to shift to higher-value roles such as farm oversight, data analysis, and precision operations management.
“Automation allows us to manage complexity, reduce human error, and optimize decision-making in a way that manual processes simply can’t match,” said Marcelo Batistella of BASF during the summit, emphasizing that automation is not a threat but a tool to improve efficiency, quality, and competitiveness.
An additional dimension is that precision agriculture and site-specific management practices, enabled by automation, are crucial for scaling regenerative agriculture across Brazil’s large farming areas while maintaining environmental stewardship, as variable-rate irrigation and nutrient management can reduce input use by 20-30% while improving yields (CGEE, 2024).
Regenerative Practices, Bioinputs, and Climate Goals
Latin America holds 31% of the world's freshwater resources and 40% of the world’s biodiversity (along the Caribbean). Comprising almost half of South America's territory (47.3%), Brazil is positioned at the frontline of climate action within agriculture. Regenerative agriculture practices, including no-till farming, cover cropping, integrated crop-livestock systems, and bioinputs, are central to building climate resilience while supporting soil health and carbon sequestration.
Brazil’s National Bioeconomy Strategy aims to reduce dependence on imported synthetic fertilizers and promote the use of bioinputs, with Embrapa reporting that biological nitrogen fixation in soybeans alone saves Brazilian farmers approximately US$15 billion annually while reducing greenhouse gas emissions (Embrapa, 2024). “Bioinputs are not just environmentally sound; they’re economically smart, reducing reliance on imports and building resilience,” emphasized Alessandro Cruvinel of the Ministry of Agriculture.
Adopting regenerative practices also aligns with market trends, as global buyers increasingly demand deforestation-free, low-carbon supply chains. In fact, studies have found that sustainability certifications often translate into sizable price uplifts – e.g. coffee farmers under Fairtrade or organic standards have earned 20–30% higher prices than conventional growers (MDPI, 2024).
Key discussion points include the need for scalable models that align regenerative practices with credit incentives and digital monitoring tools to measure soil health and carbon sequestration for carbon credit programs.
SAF and Brazil’s Potential as a Sustainable Fuel Hub
A particularly insightful discussion during the summit centered on Sustainable Aviation Fuel (SAF), underscoring Brazil’s potential to become a global SAF leader. Brazil’s experience with ethanol and biofuel leadership positions it well to align energy, food, and climate strategies efficiently.
Brazil has officially moved to raise the mandatory ethanol blend in gasoline from 27% to 30% (E27 to E30) as of August 2025 (Reuters, 2025). Approved by the National Energy Policy Council (CNPE), this policy is framed as a step toward cleaner energy and reduced fossil-fuel dependence. According to the Brazilian government, increasing the ethanol content “eliminates [fuel] imports, reduces emissions, [and] strengthens national biofuel production” (gov.br). Practically, the E30 mandate is expected to drive over R$10 billion in new investments and create more than 50,000 jobs as biofuel supply expands (gov.br), underscoring Brazil’s commitment to sustainable energy transitions while also supporting domestic agriculture and benefiting sugarcane and corn ethanol producers (Reuters, 2025).
In the aviation sector, global demand for Sustainable Aviation Fuel (SAF) is projected to soar to 449–500 billion liters annually by 2050, aligning with the International Air Transport Association’s (IATA) net-zero carbon goals and representing about 65% of total aviation fuel needs by mid-century (AirInsight, LH Consulting). This surge in demand offers a significant export opportunity for biofuel-producing nations like Brazil. Analysts note Brazil’s SAF production potential could exceed its domestic jet-fuel consumption, positioning it as a major SAF exporter if scalability challenges are addressed (Sustainable Aviation Futures). One study found Brazil could produce around 9 billion liters of SAF from residual feedstocks alone—enough to meet the country’s annual jet fuel demand of 7.8 billion liters while generating a surplus for export (Revista Pesquisa FAPESP). Leveraging its abundant sugarcane, corn, and other biomass resources, Brazil has a competitive advantage in SAF production.
However, realizing this potential will require investment in new biorefineries, supportive policies, and technological scale-up to bring down costs. Panelists in the Sustainable Fuels: Scaling Biofuels and Tapping into Carbon Markets for Sustainable Growth session at the summit emphasized the need for blended finance models, clear policy frameworks, and stable demand signals to build investor confidence in SAF infrastructure, alongside supply chain integration to secure consistent biomass supply without disrupting food production. This points to a broader insight: the future of sustainable fuels must intersect with food systems planning to ensure synergies rather than trade-offs.
A Well-Rounded Event Fostering Connection and Collaboration
The World Agri-Tech South America Summit was a comprehensive gathering of stakeholders shaping the future of agriculture. The event brought together C-suite leaders, cooperative heads, startup CEOs, policymakers, and research institutions such as Embrapa and the Ministry of Agriculture, creating a platform for collaboration across the sector’s most pressing challenges and opportunities.
Panel discussions explored critical topics from financing and bioinputs to regenerative practices, SAF production, and precision agriculture. The event also offered startup pitches, interactive roundtables, and targeted networking opportunities, including a Women in AgriTech brunch, facilitating deeper collaboration among participants. Networking moments—whether during pre-booked 1:1 sessions, over high-quality Brazilian meals, or at the lively closing party with live music—were invaluable for turning ideas into action and building enduring partnerships.
Women in Agritech Brunch, hosted by SAP.
Agritecture’s Role and Vision for the Region
At Agritecture, we see Brazil and South America as critical partners in building a resilient, tech-enabled, and sustainable agricultural future. Our systems-level approach—combining data, design, and stakeholder integration—aligns with the collaborative spirit felt throughout the summit.
“Agritecture is uniquely positioned to help startups develop business pitches and investment cases that reflect not only sound business fundamentals but also clear pathways for technology integration across entire value chains. For investors, we offer due diligence support rooted in our decade-long experience evaluating advanced agtech and CEA technologies. For cities and policymakers, our track record advising on sustainable frameworks speaks for itself. For farmers, we bring support for innovation, from tech integration and technical training to greenhouse and vertical farm design. And for companies expanding internationally, our marketing, market research, and sponsored content services are backed by our global experience across 300+ projects in 45+ countries—delivered with a local touch, as we travel to meet and understand the unique needs and culture of those we serve.” (Victoria Moura, South America Representative at Agritecture).
Agritecture’s presence at the World Agri-Tech South America Summit was not just observation—it was engagement. Whether supporting indoor farming ventures in urban centers, integrating automation in open-field operations, or advising on supply chain transformation and regenerative agriculture, we are committed to helping Brazil’s agriculture evolve into a system that feeds the world while caring for the planet.