On May 16 of this year, a case of avian influenza was confirmed at a commercial poultry farm in Montenegro, in the state of Rio Grande do Sul. The mere disclosure of this single case on May 22 was enough for China, the European Union, and Chile to temporarily suspend Brazilian chicken imports under the sanitary void protocol. Two months later, the Brazilian federal government continues working with international markets to restore confidence in the sanitary safety of Brazil’s poultry production.
In this context, the importance of a common imperative across all agribusiness sub-sectors becomes clear: traceability throughout the production chain.
Brazilian agribusiness — a robust pillar of the national economy and one of the largest food producers in the world — is at a strategic inflection point. Sustainability and traceability, once considered competitive advantages, are now requirements for market access, both domestic and international.
Although Brazil is a global example in adopting sustainable agricultural practices such as no-till farming and the use of bio-inputs, there is still much progress to be made in implementing traceability systems powered by technologies like blockchain. The country leads in sustainability metrics: more than 55% of farmers use biological products for pest and disease control, surpassing adoption rates in both the European Union and the United States. Over 80% of farms have adopted the no-till system (SPD), which preserves soil health and reduces carbon emissions. The Crop-Livestock-Forest Integration (ILPF) model covers 18 million hectares, with projections to double by 2030, and Brazil is a global benchmark in the reverse logistics of empty pesticide containers, with 100% collected and 97% recycled.
In livestock, Brazil combines production growth with sustainability — productivity per unit of greenhouse gas (GHG) emissions has increased steadily (3.92% in livestock and 3.93% in agriculture between 1990 and 2020).
Despite this remarkable progress, challenges remain significant. Economically, implementing sustainable practices and traceability technologies involves high upfront costs, which represent a major barrier, especially for small and medium-sized producers. A study by Embrapa shows that the cost of investing in digital solutions “frightens” 67% of farmers. There is a lack of targeted incentives for traceability technologies, and high interest rates combined with economic volatility discourage long-term investments.
Additionally, a grain storage deficit of 122 million tons and insufficient modern logistics expose harvests to climatic risks and pest outbreaks, affecting profitability and economic sustainability.
On the regulatory front, the scenario is complex and constantly evolving, demanding continuous adaptation. New international pressures — such as the European Union Deforestation Regulation (EUDR) — impose strict requirements on Brazilian exports, potentially creating non-tariff barriers that negatively affect export prospects. Despite existing regulations, enforcement remains insufficient, especially for smallholders and intermediaries, which may undermine the effectiveness of traceability standards.
From a technical perspective, low rural connectivity — with only 30% of rural properties in Brazil having internet access — severely limits the use of data collection and precision agriculture technologies, including traceability systems. Data management also remains problematic, with opaque, inconsistent, or missing records throughout the supply chain. The lack of data standardization among chain participants complicates integration and efficient information exchange.
From a social standpoint, low educational levels and the scarcity of technical assistance among small producers hinder the adoption and operation of complex traceability systems. Many express concerns about how their commercial and personal data will be used by other entities in the value chain, citing fears of unfair business practices and dependency on technology providers.
Food waste is another critical issue: Latin America accounts for 6% of global food losses, with around 15% of available food wasted annually. Land tenure conflicts further threaten food production and environmental sustainability, adding opacity to supply chains and contributing to food insecurity.
For large agribusiness corporations such as BRF (livestock and meat processing) and Amaggi (soy and agricultural commodities), traceability and sustainability directly influence revenue management in several ways. Demonstrating a sustainable origin and deforestation-free production is essential for accessing premium markets and overcoming non-tariff barriers such as those imposed by the EUDR.
For animal protein producers, detailed traceability across livestock and slaughterhouses is crucial to manage sanitary and quality risks. Efficient recall processes enabled by traceability minimize financial losses and protect brand reputation in contamination events. This translates into greater consumer trust — increasingly tied to transparency and responsible production — and the ability to command higher prices for sustainably certified products.
In a scenario of rising demands for sustainability and traceability, and with global competition intensifying, the ability to adapt and innovate is vital.
To successfully navigate this dynamic environment and position your company at the forefront of sustainability and traceability in Brazilian agribusiness, rely on Trust Insight to gain rapid, validated access to experts with practical and current knowledge, empowering decision-making in mergers, acquisitions, digital ecosystem expansion, and market assessments across Brazil.