Commodities: Natural advantages should sweeten deals

One of these opportunities is the local food market: Brazil’s 200m population is becoming more affluent and is demanding more and more varied food.
But the export market is likely to continue to dominate production as Brazil is a world leader in low cost agricultural commodities, particularly soyabeans.
Analysts also continue to point to natural factors such as high soil quality and favourable weather – particularly rainfall – application of the latest technology such as genetic modified organisms to achieve higher yields and a move towards large-scale farms that achieve economy of scale: “As a consequence of these factors – and despite some trade barriers – the trend has been for Brazil to consistently increase exports year-on-year,” the report states.

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