Brazil agribusiness and government policies may clash

Significance

Agribusiness’s strong support for President Jair Bolsonaro in the recent presidential election raises concerns about how President-elect Luiz Inacio Lula da Silva will negotiate with the sector. This sets a positive but challenging outlook for agriculture.

Impacts

• Commodity exports are likely to remain high, with increasing cooperation with China.
• Cost pressures may persist, reducing profit margins but not productivity.
• Political and environmental issues will present key challenges in designing a new policy for the sector.