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Research released by TCP Partners, an investment and management company, predicts that Brazil’s irrigated area could grow by 4.2 million hectares by 2040. According to the study, since 2006, irrigated agriculture in Brazil has shown an average growth rate of 4.7% per year.
According to IBGE data, in 2021, the country’s total irrigated crop area was 8.2 million hectares, and by 2040, this could grow approximately 50% in relative terms for the period.
A study by the Agricultural Irrigation Market in Brazil showed that the country’s fertigated sugarcane crop area is 2.9 million hectares or 35.4% of the total, followed by other crops, such as rice, cane and coffee, with 1.4 million hectares or 17.6% of total.
The Southeast region accounts for the largest share in the percentage of irrigated area at 39.8%, followed by the South with 25%, while the North represents only 5.5%.
For Ricardo Jacomassi, partner and chief economist at TCP Partners, climate variations have always been a matter of concern for agricultural activity, which has favored the development of technologies in several areas.
″The market is prosperous and minimizes climate risks, in addition to boosting agribusiness productivity. The irrigation industry is also an important pillar for the expansion of agribusiness in various segments, such as fruits, vegetables and grains, and pastures,″ Jacomassi said.
Between 2006 and 2021, the area cultivated for grain in Brazil witnessed a growth rate of 2.5% per year. There is also a forecast that grain production will reach some 333 million tons by 2031, a rise of approximately 80 million tons or 32% in relative terms for the next 10 years.
The rise in new arable areas is a direct response to the efforts to guarantee global food supplies at prices that soften the inflationary environment, resulting from the strong demand for commodities.
Therefore, to sustain the growth in the production of grains and other agricultural products, irrigation is a fundamental factor, as well as genetics, pesticides and fertilizers.
″The irrigation segment offers many opportunities and attracts many investors. It is possible to identify several small and medium-sized companies and the presence of publicly traded multinationals operating in the Brazilian market. We believe that the irrigation business will be promising, as it is part of the risk reduction solution and, therefore, should attract investors, producers, governments and other agents working in agribusiness,″ Jacomassi said in conclusion.
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