China and Brazil are set to deepen their cooperation in agricultural trade and technology exchange, a strategic move in response to new tariff measures imposed by the United States. This partnership, highlighted by Paulo Teixeira, Brazil’s Minister of Agrarian Development and Family Farming, underscores the growing synergy between the two nations in the agricultural sector.
China, the largest buyer of Brazilian agricultural products with imports reaching $49 billion last year, plays a pivotal role in Brazil’s agricultural economy. Conversely, Brazil is a significant importer of Chinese agricultural products, fostering a mutually beneficial trade relationship. This cooperation is not just about trade but also about technological advancement and innovation in agriculture.
Brazil, home to about 5 million smallholder farming families who produce roughly 70 percent of the country’s food supply, faces a stark contrast in agricultural mechanization. While large-scale agriculture is highly mechanized and technologically advanced, small-scale farms lag behind. To address this disparity, Brazil has introduced a series of incentives to attract foreign investment, particularly from China. These measures include tariff exemptions for up to 12 months on capital goods and information and technology goods, as well as special subsidies and low-interest credit support for purchasing small-scale farm machinery.
Chinese agricultural machinery is already in high demand in Brazil, with many local farmers using tractors made in China. The collaboration extends beyond machinery to include programs like the Science and Technology Backyards in Brasilia and Rio Grande do Norte, established last year. These initiatives focus on field investigations, machinery testing and maintenance, technology promotion, and personnel training, aiming to boost grain output among smallholder family farms by 40 percent.
“The China-Brazil STB program has brought compact, affordable machinery to Brazilian family farms, improving productivity, increasing income and — perhaps most importantly — renewing hope for rural communities,” Teixeira said.
However, there is a growing call for a greater variety of Chinese agricultural machinery in Brazil. Luiz Zarref, Latin America coordinator at the International Association for Popular Cooperation, noted that Brazilian family farmers need a wider and more flexible range of horsepower options. Most Chinese machinery on the market ranges from 75 to 100 horsepower, while smaller models are better suited to smallholder operations. Diversified equipment that supports the full farming cycle is in high demand.
As digital transformation becomes increasingly critical for the next phase of agricultural development, more cooperation will focus on promoting smart agriculture in Brazil. The China-Brazil Joint Laboratory on Mechanization and Artificial Intelligence of Family Agriculture, built in November last year, aims to promote technology transfer, including intelligent agricultural machinery for small and medium-sized fruit and vegetable production.
“We’ve completed the first golden 50 years of Brazil-China cooperation, and we’re entering the next phase — another golden 50 years,” Teixeira said. This partnership not only strengthens bilateral ties but also sets a precedent for international cooperation in agricultural innovation and trade.