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Brazil agribusiness and government policies may clash

Monday, December 19, 2022

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.

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