The World Agri-Tech South America Summit, held in São Paulo, highlighted a pivotal shift in Brazil’s agricultural sector. The country, already a global leader in feeding nearly 10% of the world’s population, is now focusing on integrating technology, sustainability, and collaboration to future-proof its food systems amidst climate challenges. This transformation is not just about increasing yields but also about meeting international demands for traceability, quality, and environmental stewardship.
Brazil’s agricultural production has seen a remarkable increase of nearly 600% over the past 40 years, with only a 100% expansion in planted area, according to Embrapa (2023). However, to maintain its competitiveness, systemic transformation through technology is essential. The summit underscored this need, with Brazilian agrifoodtech funding surging to US $76.8 million in Q1 2025 alone, an 85% year-over-year rise. This momentum reflects growing confidence in agtech’s potential to drive transformation in Brazil’s agriculture.
Yet, a critical disconnect remains. Many startups focus on developing sophisticated, capital-intensive technologies to attract investors, often overlooking the practical needs of farmers. This gap is particularly relevant in Brazil, where over 80% of the country’s more than 5 million agricultural establishments are smallholder farms. These farmers require affordable, low-complexity technologies to address critical challenges such as irrigation, pest management, and soil health.
Silvia Dávila of Danone highlighted the need for targeted, appropriate technologies, citing Danone’s Flora Project as an example. This project increased smallholder milk farmers’ incomes by 17% while reducing methane emissions by 40%. The key takeaway is that impactful technology must be designed with, not just for, farmers. This necessitates collaboration between startups, investors, cooperatives, extension services, and local governments to create solutions that consider Brazil’s geographic and socioeconomic diversity.
Integrating technology across the supply chain is another crucial aspect. Brazil’s agricultural supply chain is vast and complex, with logistics accounting for 30–40% of the total cost of soybeans. Road transport, predominantly reliant on diesel trucks, exposes the sector to fuel price volatility and infrastructure bottlenecks. Moreover, Brazil imports about 85% of its fertilizer needs, making input costs highly vulnerable to global price swings and geopolitical disruptions.
Embrapa’s leadership emphasized the need to foster local bioinput industries and expand domestic fertilizer production to reduce vulnerability and promote sustainability. Otavio Lopes of EY argued for a paradigm shift towards an interconnected, predictive ecosystem. This would involve digital integration, real-time data visibility, and blockchain-enabled traceability across the supply chain to meet global market expectations.
Financing innovation is another critical factor. The Brazilian government allocated a record R$78.2 billion to PRONAF in its 2025/26 agricultural plan. However, higher interest rates risk limiting access for low-income farmers who depend on affordable credit to modernize and adopt new technologies. Private financial institutions are increasingly stepping in to complement public policy efforts.
Nadege Saad of Bradesco emphasized that credit must be paired with technical assistance and digital tools to ensure effective capital allocation and reduce default risks. 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 and leveraging digital farm management platforms for improved credit decisions.
Lastly, the summit addressed the shifting dynamics of Brazil’s agricultural workforce. The rural population has declined from 15.3% in 2012 to 12.7% in 2022, driven by rural-to-urban migration and aging demographics. This trend risks a 12% reduction in Brazil’s agricultural workforce over the next decade if interventions are not made. The lack of generational renewal highlights the need for technological solutions to address labor shortages and improve productivity.
In conclusion, the World Agri-Tech South America Summit underscored the need for a holistic approach to transforming Brazil’s agricultural sector. By integrating technology, sustainability, and collaboration, Brazil can future-proof its food systems and maintain its competitiveness in a climate-challenged world.