President Lula announces BRL 546.6 billion to boost sustainable agro-industrial chains

The Bank of Brazil [Banco do Brasil/BB] is now part of the More Production Plan [Plano Mais Produção/P+P] with BRL 101 billion; resources for New Industry Brazil [Nova Indústria Brasil/NIB] add up to BRL 507 billion in credit lines

Public resources for Mission 1 amount to BRL 250.2 billion: BRL 198.1 billion that have already been allocated (2023-2024), plus BRL 52.18 billion (2025-2026)

The agroindustrial sector expects BRL 296.3 billion in private investments by 2029

Goals: to increase growth of the Agro-industry Revenue GDP [PIB Renda Agroindústria] to 3% per year (6% in 2033); mechanization of family farming to 28% in 2026 (35% in 2033); technological development of family farming to 43% in 2026 (66% in 2033)

President Lula signs decree creating the National Program for Research and Innovation in Family Farming and Agroecology [Programa Nacional de Pesquisa e Inovação para Agricultura Familiar e Agroecologia/PNPIAF]

Brazilian agriculture has gained further momentum with New Industry Brazil [Nova Indústria Brasil/NIB]. On Tuesday (3), at the Planalto Palace in Brasília, President Luiz Inácio Lula da Silva and Vice-President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin; Federal Government representatives; and sector businesspeople announced BRL 546.6 billion in public and private investments for NIB Mission 1, which aims to develop sustainable and digital agroindustrial chains for food, nutritional and energy security.

Brazilian agribusiness plays an important role in ensuring worldwide food security, and family farming is essential to producing the food that is on our tables every day. In this sense, New Industry Brazil combines greater coordination of financing policies with actions to strengthen our agro-industrial chain, to add more value to national production, generate jobs and further increase our rural productivity and sustainability”

GERALDO ALCKMIN
Vice-President

Of the BRL 546.6 billion, BRL 250.2 billion are public resources in credit lines, of which BRL198.1 billion were allocated in 2023 and 2024; and BRL 52.18 billion are available for 2024 to 2026. The private sector plans to invest BRL 296.3 billion by 2029.

“Brazilian agribusiness plays an important role in ensuring food security in the world, and family farming is essential to producing the food that is on our tables every day. In this sense, New Industry Brazil combines greater coordination of financing policies with actions to strengthen our agro-industrial chain, to add more value to national production, generate jobs and further increase our rural productivity and sustainability,” emphasized Alckmin.

The ceremony marks the inclusion of the Bank of Brazil [Banco do Brasil/BB] in the More Production Plan [Plano Mais Produção/P+P] as a new NIB financing branch, providing, above all, greater coordination of actions that are aligned with the new industrial policy. BB's credit lines for the NIB total BRL 101 billion, bringing the P+P's resources to BRL 507 billion. In addition to BB, the More Production Plan provides resources through BNDES (BRL 259 billion), Caixa (BRL 63 billion), Finep (BRL 51.6 billion), Banco do Nordeste (BRL 16.7 billion), Banco da Amazônia (BRL 14.4 billion) and Embrapii (BRL 1).

IMPROVED GOALS — At the event, Minister Geraldo Alckmin presented the new goals of NIB Mission 1 for 2026 and 2033, approved by the National Council for Industrial Development [Conselho Nacional de Desenvolvimento Industrial/CNDI]. The first is to increase the growth of the Agro-industry Revenue GDP [PIB Renda Agroindústria] to 3% per year in 2026 and 6% per year in 2033. As a reference, the Agro-industry Revenue GDP in 2023 was BRL 761 billion, and the average growth from 2019 to 2023 was 1.75%.

Recognizing the importance of using tractors and other implements, the second goal is to increase the mechanization of family farming to 28% in 2026, and 35% in 2033. According to the IBGE Agricultural Census, in 2023 the mechanization rate of family farming reached 25%.

Finally, the third goal is to increase the level of technicalization of family farming to 43% by 2026 and 66% by 2033. Technicalization is the use of agricultural equipment and technologies that go beyond mechanization. Currently, 35% of establishments are technically advanced.

The CNDI also defined the priority production chains for Mission 1, which will help boost the sector and achieve the goals defined by the Council. The first chain will disseminate the use of precision agriculture, encouraging the domestic production of drones.

The government also wants to strengthen the fertilizer and biofertilizer production chain, generating value for domestic products and reducing Brazil's dependence on these imports. The government is also going to strengthen domestic production of agricultural machinery and their parts and components.

NEW MEASURES — At the ceremony, President Lula signed a decree creating the National Program for Research and Innovation in Family Farming and Agroecology [Programa Nacional de Pesquisa e Inovação para Agricultura Familiar e Agroecologia/PNPIAF]. The program aims to promote research and innovation focused on family farming, with an emphasis on agroecological transition; on territories; on preservation of biomes; and on the sustainability of agroecosystems, contributing to the food security and sovereignty of Brazilian society.

In addition, the ministries of Development, Industry, Commerce and Services [Desenvolvimento, Indústria, Comércio e Serviços/MDIC]; Agrarian Development [Desenvolvimento Agrário/MDA]; and Science, Technology and Innovation [Ciência, Tecnologia e Inovação/MCTI] signed an ordinance establishing the Advisory Board of the Mais Alimentos Program [Programa Mais Alimentos], of which government representatives and family farming entities are going to participate.

In line with the goal of Mission 1, the Ministry of Agriculture and Livestock [Ministério da Agricultura e Pecuária] and Petrobras signed an agreement to strengthen the production and development of fertilizers and inputs for plant nutrition.

The agreement provides for the expansion and modernization of manufacturing facilities for the national production of fertilizers; training of professionals; development of advanced technologies; improvement of infrastructure and logistics; technology transfer; in addition to sustainable rural development.

BNB AND FINEP — During the ceremony, the Bank of the Northeast [Banco do Nordeste/BNB] signed a contract with Inpasa to finance a new corn and sorghum ethanol plant in the state of Maranhão. With financing of BRL 600 million from BNB, the project will count on a total investment of BRL 1.3 billion, with the potential to generate 351 direct jobs at the new plant.

Moreover, Finep will sign two contracts, each worth BRL 250 million, for the development of innovative products for the agricultural sector. Company Ouro Fino Saúde Animal will develop the world's first single-dose vaccine against Glässer's swine disease.

For the development of innovative products and processes that generate an impact on industrial processing, Finep's other agreement will be with agro-industrial cooperative Lar Cooperativa Agroindustrial. The project foresees the development of solutions related to food and supplies for poultry, towards automating processes and using new Industry 4.0 technologies to increase productivity, reduce production costs and ensure food safety.

BRL 1.83 TRILLION — New Industry Brazil has leveraged new investments from the private sector, which will contribute to strengthening the competitiveness of Brazilian industry. To date, BRL 1.83 trillion in investments have been announced over the coming years:

Agro-industry — BRL 296.3 billion
Construction — BRL 1.06 trillion
Automotive — BRL 130 billion
Pulp and Paper — BRL 105 billion
Information and Communication Technology — BRL 100.7 billion
Steel — BRL 100 billion
Health — BRL 39 billion