The green economy drives innovation in the Brazilian agribusiness sector

The green economy drives innovation in the Brazilian agribusiness sector


Expert highlights Brazilian agrotechnical companies’ focus on global demand and underscores their importance in transforming the agricultural sector

Second United Nations Environment Program (UNEP)THE green economy is defined by low carbon emissions, greater efficiency in the use of natural resources and greater social inclusion – with job and income growth driven by public and private investment in economic activities, infrastructure and the assets that enable it to achieve these objectives and in any case preventing the loss of biodiversity and ecosystem services.




Data from Brazilian Agribusiness Association (ABAG), reflect the growing awareness of rural producers on the need to adopt advanced technologies to face the challenges of the sector, mainly in terms of logistics and infrastructure. From January to September 2022, Brazilian agri-food exports totaled US$122 billion, 30% more than in the same period in 2021. As for 2023, agricultural GDP is projected to grow more than 10%.

The adoption of sustainable practices, such as precision agriculture, integrated crop-breeding-forestry systems and the use of drones for monitoring, have contributed to reducing the environmental impact of agricultural activity in the country.

According to Durval Garcia, director of innovation at GAC Brazilinternational consultancy company specializing in strategic management and innovation promotion, the importance of national agrotech has been increasingly highlighted due to the growing demand for technological and sustainable solutions in agricultural production.

“As one of the largest agricultural producers in the world, Brazil constantly needs to look for innovations to increase the efficiency and sustainability of its agricultural practices. In addition to the traditional players, new players are emerging in the process of digitizing the countryside,” says Garcia – which highlights, among the traditional players in the sector, educational and research institutions, large suppliers of inputs and equipment, technical assistance, associations and cooperatives, as well as the producers themselves.

The new wave of the digital revolution and the bioeconomy has aroused the interest of a growing number of startups in the agricultural sector, the so-called agtechs, which work with technology applied to food in various segments of the production chain.

data of Agtech Brazil Radar – The Embrapa initiative which mapped 1703 Brazilian agtechs, in collaboration with SP Ventures and Homo Ludens – shows that these new companies received 85% more investments in 2021 than in the previous year. “Innovation hubs are of great importance in making manufacturers aware of the benefits of digital technologies,” says Garcia. “It is essential to develop a culture of innovation, providing continuous learning and improvement of technology solutions on farms and businesses.”

The use of practical tools – easier for the producer to adopt, such as selective spraying, efficient use of seeds and, above all, biotechnology – should grow much, providing a lower environmental impact.

Garcia emphasizes the importance of developing innovative solutions that meet consumer demands for healthier, more sustainable foods. An example of this is the growth of the organic products market in Brazil, which according to Organic Promotion Association (Organis) recorded a 30% increase in turnover in 2022, compared to the previous year.

“In addition to the innovations in the agricultural sector that allow for the expansion of organic production and the diversification of the products offered, agrotech in Brazil plays a crucial role in promoting a more sustainable and efficient agricultural development, bringing benefits to both producers and consumers and to the environment”, says the expert.

Alliances between businesses and teaching and research institutes are essential to create an environment conducive to innovation and the development of sustainable technologies. “This collaboration allows both parties to leverage their knowledge and resources to achieve meaningful results in the pursuit of sustainability,” says the consultant – emphasizing the potential to generate economic benefits for all involved.

“Companies that invest in innovation and sustainability are more competitive in the marketplace, as they are able to meet consumer demands for eco-efficient products and services. Teaching and research institutes, on the other hand, benefit from being able to apply knowledge produced in their search for real solutions and to contribute to the training of qualified professionals to face the challenges of the future”.

Durval Garcia also points out that collaboration between companies and educational and research institutions is essential to ensure progress in areas such as renewable energy, energy efficiency, sustainable agriculture and urban mobility. This is why it is necessary to create incentive and funding mechanisms for projects that promote sustainability and innovation.

“It is essential that the government creates policies to encourage innovation and sustainability, as well as foster cooperation between business and teaching and research institutions,” says the executive – drawing attention to the ‘agricultural innovation corridor‘ created in São Paulo. It is an ecosystem that crosses the cities of Jaguariúna, Campinas, Piracicaba, São Carlos and Ribeirão Preto, with the aim of promoting regional development, with a particular focus on connecting innovation environments and research institutes in the region.

“In this region there are universities, public and private research bodies, accelerators and startups operating in the agricultural sector. The idea is to extract the maximum possible value from this innovation ecosystem”, concludes Garcia.

Website: https://group-gac.com.br

Source: Terra

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