Brazilian Agribusiness Leaders Want Dialogue with Lula

Agribusiness leaders in Brazil have expressed their desire for a successful dialogue with president-elect Luiz Inacio Lula da Silva (Lula) as he prepares to assume power on Jan. 1, 2023. The major concerns for the agricultural sector in Brazil include:

• Rural security and zero tolerance for farm and ranch invasions by “landless-poor.”
• Protecting national agricultural production.
• Reducing logistical costs in Brazil or what is called the “Brazil costs.”
• Opening new markets for Brazilian products and export incentives.
• Increasing domestic fertilizer production and reducing Brazil’s dependence on imported fertilizers.

The agricultural sector accounts for approximately one quarter of Brazil’s GDP and 50% of its exports.

South American consultant Dr. Michael Cordonnier says, “Lula is expected to set a new ‘tone’ in Brazil as far as agriculture is concerned. He will likely put more emphasis on medium and small size producers, promote more sustainable agriculture, and put more emphasis on protecting the environment. This new tone will include increasing the productivity of land that has already been cleared instead of clearing new land and this new tone may have some additional benefits. The whole issue of agrarian reform is a very difficult problem to solve and Lula has not indicated how he will deal with this problem. How he handles this issue will go a long way in determining his relationship with agricultural sector.”