Agribusiness, which accounted for practically 25% of the Brazilian Gross Domestic Product (GDP) last year, is experiencing a good phase of international diplomacy with the current Government, according to Money Week guests.
"In terms of international politics, the moment is favorable for Agribusiness. We no longer have as much conflict with China, which is Brazil's largest export destination, and we've only had good news with the opening of new markets," says Tortelli. He envisions that 2023 will break all records for animal shipments, without affecting domestic meat consumption.

Livestock farming, Tortelli and Correia recall, is undergoing a transformation, with migration from extensive practices to feedlot operations, which should impact the space available for crops in the country and, consequently, also grain production.

In the sugar-energy sector specifically, Soret states, there was a Government impact on the reintroduction of taxes on fuels, but which was more favorable to ethanol. "The Government is signaling that it wants to help biofuels," he says, noting that the renewal of the RenovaBio Program, an incentive for biofuels, demonstrates this. The guests also discussed the evolution of corn ethanol, which should gain scale in the country. "The fact is positive for the sector in general," Soret assesses.

"On the diplomacy issue, the world is starting to look at ethanol as a sustainable mobility matrix. We have many automakers betting on hybrid vehicles and Europe importing more ethanol," he evaluates.

There is still much uncertainty, for example, regarding how the new Petrobras Board (PETR3; PETR4) will direct fuel pricing policy. He evaluates that today the market is paying more attention to the company and to the governance issue.

Eça Correia highlights that the new Ministry of the Environment, with Marina Silva at the helm, is showing more attention to preservation, and that this image of sustainable Agribusiness needs to be better explored abroad.

"We need to improve our marketing. Our coffee is the best and we are the largest producer, but Colombia is more famous abroad. Ethanol has to be the same thing, livestock too. Our Agribusiness is extremely sustainable and competent. The Government has to get involved in this, in the positive promotion of our Agribusiness," says Soret.

Credit:
https://euqueroinvestir.com/money-week/papel-do-agronegocio-na-retomada-economica