Reinvention is Essential for Brazilian Agribusiness CEOs Amid…

Agribusiness CEOs express optimism for economic growth in 2025 but recognize the urgent need for reinvention influenced by climate change and digital transformation. The latest PwC Global CEO Survey reveals that 44% of Brazilian CEOs believe they will not survive economically without innovation. Investment in AI and diversification in revenue streams are highlighted as key strategies for future resilience.

Agribusiness executives prioritize reinvention as they navigate economic optimism and challenges like climate change. The 28th Global CEO Survey by PwC highlights that 44% of Brazilian agribusiness CEOs believe their firms will not survive economically in the next decade without transformation, a rise from 31% previously. “The need for reinvention is urgent, and we have seen significant moves by companies exploring new business models,” stated Mauricio Moraes, PwC Brazil’s partner in agribusiness.

Despite economic hurdles, 76% of agribusiness CEOs express optimism for the current year, up from 69% in 2024. Furthermore, 48% foresee revenue growth this year, a notable increase from 35% reported the previous year. Positive outlooks persist in sectors like coffee and sugar, corroborated by a robust grain harvest and favorable market conditions, according to Mr. Moraes.

Global dynamics, such as potential easing of tariffs by the Trump administration, may favor Brazilian grain exports. Furthermore, executives are cautiously hopeful that geopolitical tensions in the Middle East will subside. Nonetheless, concerns persist regarding climate change, with 56% identifying it as a significant risk for the upcoming year, a striking contrast to the national average of 21%.

Alongside climate concerns, 38% of CEOs view workforce qualification as the second most critical threat to their businesses. Other noted risks include economic instability (30%), inflation (22%), geopolitical conflicts (22%), and cybersecurity threats (20%). As evidenced in this year’s survey, the urgency for reinvention has grown, reflecting the evolving landscape of agribusiness.

Action is underway, with 54% of executives actively seeking new customer bases, 48% developing innovative products or services, and 44% forming partnerships. Notably, 44% of agribusiness leaders are focusing on diversifying revenue streams, particularly through investments in biogas and biofuels, which align with climate change initiatives mentioned by Mr. Moraes.

An increasing interest in generative artificial intelligence (AI) emerges among executives. The survey indicates 52% have benefited from improved time management due to AI, and 61% anticipate enhanced profitability from its integration. “This indicates that the sector is already seeing positive results from AI and is beginning to project even better outcomes,” added Mr. Moraes.

Furthermore, 86% of CEOs plan to invest in AI technologies over the next three years to enhance their business processes and strategies. There is a clear trend towards adopting innovative technologies to stay competitive in a rapidly changing marketplace.

The growing focus on reinvention among agribusiness executives stems from several interrelated factors, including economic uncertainty, climate change, and the rapid advancements in technology. The Global CEO Survey by PwC provides insight into the sentiments of more than 4,700 business leaders, highlighting the necessity for businesses to adapt to survive long-term. As the agribusiness landscape evolves, particularly in Brazil, understanding these dynamics is crucial for strategic decision-making.

In summary, Brazilian agribusiness CEOs must prioritize reinvention to ensure long-term viability in face of economic and environmental challenges. The current survey results reflect an increase in optimism, yet awareness of climate risks and workforce issues is paramount. Embracing innovative technologies, particularly in AI, provides a pathway for improving operational efficiencies and diversifying revenue streams, indicating a proactive stance toward future challenges.

Original Source: valorinternational.globo.com