Agribusiness in Brazil Potential Addressable Market¶
Addressable Market Calculation¶
This report quantifies the potential addressable market (TAM) for each identified whitespace in the Brazilian Agribusiness sector based on available data from 2024 and 2025, as provided in the source documents. Given the nature of whitespace analysis and data availability, the calculations provide estimated ranges rather than precise figures.
1. Affordable Traceability & ESG Compliance Solutions for SMEs and Cooperatives¶
This whitespace addresses the need for cost-effective tools and services enabling Small and Medium-sized Enterprises (SMEs) and cooperatives to meet growing demands for product traceability and ESG (Environmental, Social, and Governance) compliance.
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Key Assumptions and Detailed Rationale:
- Number of Target Farms/Producers: The target market primarily consists of the vast number of smaller producers and the cooperatives that aggregate their production. The Value Chain Report (VCR, 2024) states that 84% of farms in Brazil are less than 50 hectares. While "SME" isn't strictly defined by area in all contexts, this statistic highlights the large number of smaller properties. We will estimate the total number of rural properties and focus on the majority represented by smaller producers and their cooperatives. Cooperatives play a key role in providing services and market access for these smaller farmers (VCR, 2024).
- Adoption Rate for Compliance/Traceability Solutions: Regulatory pressure (e.g., EUDR by 2025) and market demand from processors, exporters, and domestic consumers are strong drivers for adoption (CPA, 2024-2025; CTA, 2024-2025). While not all SMEs will adopt immediately, a significant portion serving demanding supply chains or seeking premiums will need solutions. Cooperatives will likely drive adoption among their members. We will estimate a range for the percentage of target producers/cooperatives that will adopt relevant solutions in the near to medium term.
- Average Annual Spending/Value per Adopter: This represents the estimated cost or perceived value of implementing and using traceability and ESG compliance tools, including software, services, certification, and potentially hardware (e.g., for data collection). Given the focus on "affordable" solutions for SMEs, this per-unit value will be significantly lower than for large corporations, but aggregated across many users, it represents a substantial market. We will estimate a plausible range for the annual spending per adopting producer or cooperative.
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Formula for Potential Addressable Market: TAM = (Number of Target Farms/Producers + Number of Cooperatives) * Adoption Rate (%) * Average Annual Spending/Value per Adopter
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Researched Numbers with Rationale and Sources:
- Total Number of Rural Properties in Brazil: While the exact current number isn't in the provided text, the VCR (2024) mentions "~5.3 m rural properties". We will use a range around this figure, acknowledging that the effective target might be a subset actively participating in commercial chains or aggregated by cooperatives. Let's estimate the target group (SMEs and those linked to cooperatives) to be in the range of 3 to 5 million properties/cooperatives.
- Adoption Rate: Given the regulatory push (EUDR) and market pull for specific products, we can assume a segment of these smaller producers/cooperatives will need to comply. Let's estimate an adoption rate range of 5% to 15% over the next few years, focusing on those serving relevant markets.
- Average Annual Spending/Value: This is harder to pinpoint from the text. However, agritech is mentioned as a dynamic segment with over 2,100 startups (VCR, 2024). The total "Agrosservices" market (which includes tech, consulting, finance, etc.) is estimated at R$ 1.09 trillion (VCR, 2024). Affordable solutions for SMEs might cost anywhere from a few hundred to a few thousand Reais per year, potentially structured as subscriptions or fees. Let's estimate an average annual spending/value range of R$ 500 to R$ 2,000 per adopting entity.
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Calculated Potential Addressable Market:
- Lower end: 3,000,000 entities * 5% adoption * R$ 500/entity = R$ 75,000,000
- Higher end: 5,000,000 entities * 15% adoption * R$ 2,000/entity = R$ 1,500,000,000
Potential Addressable Market Range: R$ 75 million to R$ 1.5 billion annually.
Rationale for Range: This range reflects the uncertainty in the exact number of commercially active SMEs/cooperatives, the speed and extent of adoption driven by varying market pressures and accessibility of solutions, and the wide potential range of affordability for these new types of services and technologies.
2. Integrated Climate Risk Management & Resilience Services¶
This whitespace focuses on providing producers and other actors with tools and services to predict, adapt to, and mitigate the financial impacts of climate variability.
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Key Assumptions and Detailed Rationale:
- Total Area Exposed to Climate Risk: A significant portion of Brazil's agricultural land is susceptible to droughts, floods, and other extreme weather events (VCR, 2024; Exame, 2025). While total agricultural area data isn't explicitly stated in one place, Brazil has vast cultivated areas (e.g., soybean crop area is massive). We can consider the total cultivated area as largely exposed to climate risk.
- Adoption Rate of Integrated Solutions: Producers are actively seeking solutions (CTA, 2024-2025), but investment in resilience (like irrigation) is still limited (VCR, 2024). Integrated solutions combining data, advisory, and finance (insurance) are emerging but not mainstream (Niche and Emerging Markets Analysis). We will estimate a range for the percentage of exposed area where producers will adopt such integrated services.
- Average Annual Value per Hectare: This represents the perceived value or cost of adopting climate resilience services, including subscriptions to data/advisory platforms, costs of climate-smart inputs/practices, and insurance premiums. This value varies significantly based on crop, region, and intensity of adoption.
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Formula for Potential Addressable Market: TAM = Total Agricultural Area Exposed * Adoption Rate (%) * Average Annual Value per Hectare
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Researched Numbers with Rationale and Sources:
- Total Cultivated Area in Brazil: The provided texts mention specific crop areas (e.g., soybean crop 166 Mt in 2024/25 implies a large area, typically >40 million hectares). To simplify and get a broad estimate of exposed area, we can look at the total value of Primary Production (R$ 646 billion in 2024 - VCR, 2024), representing the output from this land. Alternatively, we can estimate total cultivated area based on external knowledge or ranges often cited for Brazil (e.g., 60-80 million hectares of cropland). Let's use a range for cultivated area of 60 to 80 million hectares as a proxy for area exposed to climate risk.
- Adoption Rate: Given the increasing climate pressure and emerging solutions, let's estimate an adoption rate range of 3% to 8% for integrated climate risk management solutions over the coming years.
- Average Annual Value per Hectare: This is highly variable. Costs could include climate advisory subscriptions (potentially R$ 10-50/ha), weather index insurance premiums (variable, potentially R$ 20-100/ha), and cost of climate-resilient inputs or practices (variable). Let's estimate an average annual value range of R$ 50 to R$ 200 per hectare for these integrated services.
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Calculated Potential Addressable Market:
- Lower end: 60,000,000 ha * 3% adoption * R$ 50/ha = R$ 90,000,000
- Higher end: 80,000,000 ha * 8% adoption * R$ 200/ha = R$ 1,280,000,000
Potential Addressable Market Range: R$ 90 million to R$ 1.3 billion annually.
Rationale for Range: This range accounts for the variability in total cultivated area considered exposed, the nascent stage of integrated climate risk management solutions adoption, and the wide spectrum of potential costs or value capture per hectare depending on the intensity and type of services adopted.
3. Carbon Farming Support Ecosystem (MRV, Monetization, Technical Assistance)¶
This whitespace addresses the need for a comprehensive system to support producers in adopting carbon farming practices, measuring and verifying outcomes, and accessing carbon markets or insetting opportunities.
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Key Assumptions and Detailed Rationale:
- Potential Area for Carbon Farming: A significant portion of Brazil's agricultural and pasture land has the potential for carbon sequestration and/or emission reduction through practices like no-till, cover cropping, integrated systems (ICLFS), and improved pasture management (COA, 2024-2025). Estimating the precise addressable area is complex, but it's a subset of total agricultural land. We can consider a portion of both cropland and pasture.
- Adoption Rate of Carbon Farming: Interest is growing due to potential new revenue streams and resilience benefits (COA, 2024-2025), but widespread adoption requires overcoming technical and financial barriers. We will estimate a range for the percentage of the potential area where producers will actively engage in verified carbon farming activities.
- Average Annual Value per Hectare (Monetization + Services): This value includes potential income from carbon credits or insetting payments, plus the cost of necessary support services (MRV platforms, technical assistance, project development fees). The value of carbon credits fluctuates.
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Formula for Potential Addressable Market: TAM = Potential Area for Carbon Farming * Adoption Rate (%) * Average Annual Value per Hectare (Monetization + Services)
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Researched Numbers with Rationale and Sources:
- Potential Area: Brazil has vast pasture areas (around 170 million hectares) in addition to cultivated land. Not all is suitable or accessible for carbon farming projects. Let's consider a combined potential area (cropland and pasture) in the range of 50 to 100 million hectares where practices could be adopted and verified.
- Adoption Rate: The ecosystem is still developing (Niche and Emerging Markets Analysis), and adoption requires significant practice changes. Let's estimate an adoption rate range of 1% to 5% for verified carbon farming.
- Average Annual Value per Hectare: This includes both potential revenue and service costs. Carbon sequestration potential varies greatly (e.g., 0.5 to 3+ tons CO2e/ha/year). Voluntary carbon credit prices are volatile (e.g., US$ 5-20/ton, or R$ 25-100 at R$5/US$). Service costs (MRV, consulting) could range from R$ 50-200/ha/year. The net value to the farmer might be lower, but the total market includes the value flowing through the ecosystem. Let's estimate a total annual value range of R$ 100 to R$ 400 per hectare for the combined monetization and service layer.
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Calculated Potential Addressable Market:
- Lower end: 50,000,000 ha * 1% adoption * R$ 100/ha = R$ 50,000,000
- Higher end: 100,000,000 ha * 5% adoption * R$ 400/ha = R$ 2,000,000,000
Potential Addressable Market Range: R$ 50 million to R$ 2 billion annually.
Rationale for Range: This wide range reflects the uncertainty in the total addressable land area, the early stage of the carbon farming ecosystem, the variability in carbon sequestration potential and credit prices, and the developing cost structures for MRV and support services.
4. Specialized Financial Products for Sustainable Transitions & Smallholder Inclusion¶
This whitespace focuses on providing accessible and tailored financial solutions (credit, insurance, etc.) to enable smallholders and medium-sized producers to invest in sustainability, technology, and climate resilience.
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Key Assumptions and Detailed Rationale:
- Target Producers/Cooperatives with Unmet Financial Need: While the Plano Safra provides significant rural credit (R$ 364 billion in 2024/25 - VCR, 2024), access is challenging for many smallholders (VCR, 2024; CPA, 2024-2025). There is an unmet demand for financing, particularly for investments linked to sustainable practices and technology adoption (CPA, 2024-2025; COA, 2024-2025). We will estimate the number of target producers/cooperatives and an average potential annual investment need per entity that could be financed by new products.
- Percentage of Need Captured by New Products: Innovative financial products (agrifintechs, blended finance, green loans) are emerging (COA, 2024-2025; OCSA, 2024-2025) and have the potential to capture a portion of this unmet need or stimulate new investment. We will estimate the percentage of the total potential investment need that could be facilitated by these specialized products annually.
- Revenue Percentage for Financial Providers: This represents the revenue captured by financial institutions and agrifintechs providing these services, typically through interest rate spreads, fees, or service charges.
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Formula for Potential Addressable Market: TAM = (Number of Target Producers/Cooperatives) * (Average Annual Potential Investment Need per Entity) * (Percentage of Need Captured) * (Revenue Percentage for Financial Providers)
Simplified Formula (focusing on loan volume and revenue): TAM = Total Annual Loan Volume Facilitated by New Products * Average Revenue Percentage
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Researched Numbers with Rationale and Sources:
- Total Number of Target Producers/Cooperatives: As estimated in Whitespace 1, let's use a range of 3 to 5 million entities.
- Average Annual Potential Investment Need: Investing in technology, irrigation, sustainable practices, or climate resilience varies widely. Let's assume a modest average annual investment need per entity that requires external financing, ranging from R$ 5,000 to R$ 20,000.
- Percentage of Need Captured: New products will likely capture a fraction of this need, especially initially. Let's estimate a capture rate of 2% to 5%.
- Average Revenue Percentage: Financial institutions earn revenue on the loans and services provided. Let's estimate an average revenue percentage (interest spread + fees) of 5% to 10% of the loan volume.
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Calculated Potential Addressable Market (using simplified formula):
- Estimated Total Annual Loan Volume Facilitated: (3M to 5M entities) * (R$ 5k to R$ 20k need/entity) * (2% to 5% captured)
- Lower end volume: 3,000,000 * 5,000 * 2% = R$ 300,000,000
- Higher end volume: 5,000,000 * 20,000 * 5% = R$ 5,000,000,000
- Applying Revenue Percentage (5% to 10%):
- Lower end TAM: R$ 300,000,000 volume * 5% revenue = R$ 15,000,000
- Higher end TAM: R$ 5,000,000,000 volume * 10% revenue = R$ 500,000,000
Potential Addressable Market Range: R$ 15 million to R$ 500 million annually.
Rationale for Range: This range reflects the significant variability in potential investment needs, the nascent stage of specialized financial products for this specific purpose and target audience, and the typical revenue capture by financial service providers. It represents the revenue opportunity for those providing the financial services, not the total value of investments financed.
- Estimated Total Annual Loan Volume Facilitated: (3M to 5M entities) * (R$ 5k to R$ 20k need/entity) * (2% to 5% captured)
5. Hyperlocal & Diversified Food Systems Leveraging Technology¶
This whitespace focuses on developing technology-enabled systems for connecting local producers of diverse foods directly with urban consumers and food service, addressing logistical bottlenecks for fresh produce.
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Key Assumptions and Detailed Rationale:
- Target Urban Consumer Base: The opportunity lies in major urban centers where demand for fresh, local, and traceable food is growing (CPA, 2024-2025; CTA, 2024-2025). We will estimate the population size in relevant urban areas.
- Percentage of Food Spending Captured by Hyperlocal Channels: Currently, most food distribution goes through traditional retail (supermarkets having R$ 1.067 trillion in revenue in 2024 - Estadão, 2025). Hyperlocal channels represent a small but growing fraction of this. We will estimate a small percentage of total urban food spending that could shift to or be newly captured by these systems.
- Revenue Percentage for Platform/Logistics Providers: This represents the revenue generated by the platforms and logistics services facilitating these transactions, typically through commissions on sales, delivery fees, or subscription models.
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Formula for Potential Addressable Market: TAM = (Urban Population in Target Areas) * (Average Annual Food Spending per Person) * (Percentage of Spending Captured by Hyperlocal) * (Revenue Percentage for Providers)
Simplified Formula (focusing on transaction volume and revenue): TAM = Total Annual Transaction Volume via Hyperlocal Systems * Revenue Percentage for Providers
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Researched Numbers with Rationale and Sources:
- Urban Population in Target Areas: Brazil has a highly urbanized population. Focusing on major metropolitan areas where demand for local/specialty food is higher, we can estimate a target population range of 20 to 40 million people.
- Average Annual Food Spending per Person: Total retail food revenue in supermarkets alone is over R$ 1 trillion (Estadão, 2025) for a population of over 200 million, suggesting an average annual spending per person on food is in the range of R$ 5,000 - R$ 10,000 (this is a rough estimate based on limited data). Let's use a range of R$ 6,000 to R$ 9,000 per person annually.
- Percentage of Spending Captured: Given the nascent stage and logistical challenges, let's assume a small capture rate of 0.1% to 0.5% of this spending via new hyperlocal channels.
- Revenue Percentage for Providers: Platforms and logistics typically take a commission on sales and/or charge fees. Let's estimate this revenue percentage to be in the range of 10% to 20% of the transaction volume.
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Calculated Potential Addressable Market (using simplified approach based on spending):
- Estimated Total Annual Transaction Volume: (20M to 40M people) * (R$ 6k to R$ 9k/person) * (0.1% to 0.5% captured)
- Lower end volume: 20,000,000 * 6,000 * 0.1% = R$ 120,000,000
- Higher end volume: 40,000,000 * 9,000 * 0.5% = R$ 1,800,000,000
- Applying Revenue Percentage (10% to 20%):
- Lower end TAM: R$ 120,000,000 volume * 10% revenue = R$ 12,000,000
- Higher end TAM: R$ 1,800,000,000 volume * 20% revenue = R$ 360,000,000
Potential Addressable Market Range: R$ 12 million to R$ 360 million annually.
Rationale for Range: This range highlights the potential of tapping into urban food spending but acknowledges the significant logistical hurdles and the early stage of widespread consumer adoption for these new models compared to traditional retail.
- Estimated Total Annual Transaction Volume: (20M to 40M people) * (R$ 6k to R$ 9k/person) * (0.1% to 0.5% captured)
6. Circular Economy Solutions for Agricultural Waste & Byproduct Valorization¶
This whitespace focuses on creating value from agricultural waste and byproducts through technology, new processing methods, and market development.
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Key Assumptions and Detailed Rationale:
- Total Value of Agricultural Byproducts: Significant quantities of byproducts and waste are generated at the farm level and during processing (12-14% for grains, >20% for fruits/vegetables - VCR, 2024; CPA, 2024-2025). We can estimate the potential value locked in these materials. The total value of Primary Production (R$ 646 billion) and Agroindustry (R$ 591 billion) in 2024 (VCR, 2024) represents the scale of activity generating these byproducts.
- Percentage of Byproducts Economically Valorizable: Not all byproducts are easily or economically valorizable with current technology and market conditions. We will estimate the percentage of the potential value of byproducts that could be captured by new circular economy solutions.
- Value Creation Rate: This represents the value generated per unit of byproduct processed or diverted from waste, either as new products (e.g., biomaterials, specialized feed ingredients) or as cost savings from reduced waste disposal.
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Formula for Potential Addressable Market: TAM = (Estimated Total Value of Agricultural Byproducts Generated) * (Percentage Economically Valorizable) * (Value Creation Rate)
Simplified Formula (focusing on total value unlocked): TAM = Estimated Total Value Unlocked from Byproduct Valorization Annually
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Researched Numbers with Rationale and Sources:
- Estimated Total Value of Agricultural Byproducts Generated: The value chain report mentions significant losses (>20% for fruits/vegetables). Applying a waste/byproduct percentage to the value of Primary Production (R$ 646 billion) and Agroindustry (R$ 591 billion) gives a rough scale. Let's estimate the potential annual value of recoverable byproducts/waste across the relevant parts of the chain to be in the range of 5% to 15% of the combined Primary Production and Agroindustry value, focusing on segments with high waste (e.g., F&V, sugarcane bagasse, meat processing byproducts). Combined 2024 value = R$ 646bn + R$ 591bn = R$ 1,237bn. Estimated byproduct potential value = 5% to 15% of this, so R$ 60 billion to R$ 185 billion. This is the potential source value, not the market size of the solutions.
- Percentage Economically Valorizable & Value Creation Rate: These are hard to estimate directly. Instead, let's focus on the market size for solutions that enable this valorization. This includes technologies, processing services, and market access for the new products. This is an emerging space (Niche and Emerging Markets Analysis). We can estimate the market size for these specific technologies and services or the revenue from selling the new products derived from valorization. Let's estimate the addressable market based on the potential value captured or created by companies providing these circular economy solutions. This could be a fraction of the potential byproduct value or based on the revenue generated by the new markets for valorized products. Given the early stage, let's estimate this TAM as a percentage of the combined Primary Production and Agroindustry value that is unlocked and captured by specific solutions/markets.
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Simplified Assumption and Formula: Let's simplify by estimating the potential annual revenue generated by businesses providing waste valorization technologies, services, and selling the resulting co-products. We will estimate this as a percentage of the total value of the segments where waste is generated (Primary Production and Agroindustry). TAM = (Value of Primary Production + Value of Agroindustry) * (Estimated Percentage Captured by Circular Economy Solutions)
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Researched Numbers with Simplified Rationale and Sources:
- Value of Primary Production + Agroindustry (2024): R$ 646 billion + R$ 591 billion = R$ 1,237 billion (VCR, 2024).
- Estimated Percentage Captured by Circular Economy Solutions: This is highly speculative but represents the market size for technologies, services, and sales channels specific to waste valorization. Given the emerging nature, let's estimate a capture rate range of 0.01% to 0.1% of this combined value as the TAM for the circular economy solutions ecosystem.
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Calculated Potential Addressable Market:
- Lower end: R$ 1,237,000,000,000 * 0.01% = R$ 123,700,000
- Higher end: R$ 1,237,000,000,000 * 0.1% = R$ 1,237,000,000
Potential Addressable Market Range: R$ 120 million to R$ 1.2 billion annually.
Rationale for Range: This range reflects the vast potential volume of agricultural byproducts but acknowledges that only a small fraction is currently addressed by dedicated circular economy solutions and markets at scale. The TAM represents the revenue opportunity for companies providing the technologies, services, and market access to valorize these byproducts.
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