Brazil AgTech Report: Lavoro Crash, Methane Trees, Cheese Play, Grain Bots, Forest Fuel
#35 BAR Brief
Welcome to this week’s Brazil AgTech Report. Curated news from the frontline of Brazil’s Agri-Climate Tech ecosystem
Summary
In AgTech news, Gohobby is bringing DJI drones to Brazil’s underserved Northern region and investing $4 million to double revenue through precision spraying. Farmers Edge launched Smart Reporting, a satellite tool for simplifying credit and insurance. Agredu is reshaping ag sales training through Whatsapp. Pragas.com has introduced new AI tools to identify pests in real time, while Mitsubishi is pushing automation in grain systems.
In Climate Tech, São Paulo state is scaling biomethane output with a new app and global partners. Embrapa shows that silvopastoral systems help neutralize methane from up to two head of cattle per hectare. Itaú BBA estimates that converting degraded pastures could raise Brazil’s grain output by over 50%.
Despite high interest rates, venture capital is making a cautious comeback in Brazil, with AgTech standing out for its asset-backed resilience. A major boost came as Brazil’s farm lobby in Congress successfully preserved tax exemptions on investment vehicles like Fiagros, defeating a presidential veto and reinforcing a key pillar of rural credit.
In M&A, Minerva sold a meat plant in Uruguay to India’s Allana Group for $48 million to satisfy antitrust requirements tied to its acquisition of Marfrig assets. Aurora Alimentos acquired premium cheese maker Gran Mestri, signaling that cooperatives are positioning for value-added growth.
Brazil’s macro outlook remains mixed. Lavoro filed for court-supervised restructuring with US$450 million in debt, and connectivity challenges persist—only 33% of soy farms have mobile internet. Still, there are positive signals: poultry exports are resuming after a targeted 28-day suspension, and Brazil is betting on AI to help clear its judicial backlog and unlock stalled investments.
🧭 Table of Contents
AgTech
🛩️ Gohobby brings DJI drones to Brazil’s North
🛰️ Farmers Edge launches tool to unlock credit and insurance
🤖 Agredu brings ag sales training to WhatsApp
🔍 Pragas.com uses AI to detect crop pests in real time
💼 Mitsubishi automates grain storage
Climate Tech
🌱 Silvopastoral systems offset cattle methane
🧪 São Paulo state scales biometano production
🌾 Itaú BBA sees big upside in pasture conversion
Funding / Fintech
🧾 Ag funds win tax exemption
📈 VC rebounds despite high rates
M&A
🥩 Minerva sells Uruguay plant to unlock Marfrig merger
🧀 Aurora acquires premium cheese maker Gran Mestri
Macro & Markets
💥 Lavoro files for court protection with $450M debt
📦 Infrastructure gaps limit Brazil’s Ag productivity
🦠 Poultry exports resume after bird flu ban
⚖️ Brazil bets on AI to tackle judicial backlog
🌱 AgTech
🛩️ Gohobby brings DJI drones to Brazil’s North – Brazilian tech company Gohobby is expanding DJI drone services in Brazil’s northern states, investing $4 million to double its revenue through precision spraying. The company sees strong demand in areas underserved by large ag retailers and is partnering with cooperatives to scale adoption. The goal is to bring advanced drone tech to medium and small producers who often lack access to high-end equipment. read more
🛰️ Farmers Edge launches Smart Reporting to unlock credit and insurance – Farmers Edge has released Smart Reporting in Brazil, a new digital platform that uses satellite imagery and automated crop monitoring to simplify access to rural credit and insurance. The tool helps producers document planting, productivity, and crop health in real time, creating verifiable records that support creditworthiness. It also reduces paperwork and offers financial institutions a reliable system to assess and monitor risk. read more
🤖 Agredu brings ag sales training to WhatsApp – AgTech startup Agredu is revolutionizing rural sales training by delivering structured, interactive content directly via WhatsApp. The platform targets professionals in ag input distribution and retail, offering scalable, mobile-first learning for teams spread across Brazil’s rural regions. By using short-form modules tailored for field reps, Agredu overcomes the challenges of bandwidth limitations and travel logistics that often hinder in-person training. read more
🔍 Pragas.com uses AI to detect crop pests in real time – AgTech startup Pragas.com has launched an AI-powered app that helps farmers diagnose pest and disease issues using smartphone photos. Developed with support from Brazil’s research funding agency, Finep, the platform identifies threats like fungi and insects across a variety of crops and provides rapid treatment recommendations. The tool enables early intervention, reduces dependence on agronomists, and helps cut crop losses through targeted response. read more
💼 Mitsubishi automates grain storage – Mitsubishi Electric Brazil is expanding its agricultural automation solutions for grain drying and storage. By incorporating AI and remote monitoring, its systems can reduce energy use, cut post-harvest losses, and increase operator safety. The company is targeting cooperatives and large producers looking to modernize infrastructure. read more
🌎 Climate Tech
🌱 Silvopastoral systems offset cattle methane – A new study by Embrapa has confirmed that silvopastoral systems—where trees are planted alongside pasture—can neutralize methane emissions from up to two head of cattle per hectare. The integrated system works by boosting carbon capture in the soil and biomass, offsetting the greenhouse gases produced by grazing animals. It maintains livestock productivity while offering a scalable, nature-based climate solution. Already in use on experimental and commercial farms, the model is gaining traction as a practical way to reduce emissions in beef and dairy supply chains. read more
🧪 São Paulo state scales biometano production – A new international cooperation agreement with the World Biogas Association (WBA) is helping São Paulo state boost biomethane production from waste sources. A dedicated mobile app tracks generation, distribution, and carbon impact, offering traceability for investors and regulators. The initiative aims to expand biofuel adoption in transport and rural industries, and is part of a broader strategy to reduce fossil fuel dependence through localized, low-carbon energy alternatives. read more
🌾 Itaú BBA sees big upside in pasture conversion – Itaú BBA estimates that converting part of Brazil’s 100 million hectares of degraded pasture into cropland could boost the country’s grain output by more than 50%. With Brazil currently using around 70 million hectares for grain production, the opportunity lies in recovering 40–60 million hectares of low-productivity pasture. The bank estimates conversion costs range from US$1,000 to US$2,000 per hectare, depending on soil condition and infrastructure. read more
💳 Funding & Fintech
🧾 Farm lobby preserves tax exemption for ag investment funds – Brazil’s influential farm caucus in Congress successfully overturned a government proposal to remove tax exemptions from investment vehicles like Fiagros, which are playing a growing role in the rural credit ecosystem. By defeating the presidential veto, lawmakers ensured these funds remain tax-free, preserving incentives for investors and helping sustain capital flows into agriculture and infrastructure. The move reinforces the strength of the rural lobby and signals continued support for private-sector financing in the countryside. read more
📈 VC rebounds despite high rates – After a long slowdown, venture capital activity in Brazil is showing signs of recovery—even with high interest rates. According to Forbes, investors are cautiously returning to sectors like AgTech, where startups tend to have asset-backed business models, predictable cashflows, and closer ties to the real economy. The article notes growing interest in climate and productivity solutions that solve real pain points. read more
🤝 M&A
🥩 Minerva sells Uruguay plant to unlock Marfrig merger – Minerva has agreed to sell a beef processing plant in Uruguay to India’s Allana Group for $48 million to secure regulatory approval for its long-pending acquisition of Marfrig’s regional assets. The sale is a condition set by Uruguay’s antitrust agency (CPA) to greenlight the $1.5 billion deal announced in 2023, which includes 16 meat plants across Brazil (11), Argentina (1), Chile (1), and Uruguay (3). read more
🧀 Aurora acquires premium cheese maker Gran Mestri – Aurora Alimentos, composing a network of 14 animal protein coops, has announced the acquisition of Gran Mestri, a high-end cheese producer based in southern Brazil. The move positions Aurora to expand into premium dairy categories, tapping into growing consumer demand for specialty products. Aurora reported revenues of over $4 billion last year, but financial details of the acquisition were not disclosed. read more
💼 Macro & Markets
💥 Lavoro files for court protection with US$460M debt – Lavoro, Latin America’s largest ag-input distributor and a portfolio company of Private Equity giant, Patria Investimentos, has filed for court-supervised restructuring in Brazil after accumulating US$460 million in debt. The move, generaly anticipated by the market, follows a more abrupt Chapter 11 filing by rival AgroGalaxy last year and reflects the broader pressures faced by ag retailers during a challenging cycle, provoked by weather-driven crop losses and falling commodity prices. read more
📦 Infrastructure gaps limit Brazil’s Ag productivity – At the Agro360 conference, industry leaders emphasized that poor road infrastructure, limited multimodal options, and high freight costs continue to erode Brazil’s agricultural competitiveness—especially for remote producers. At the same time, new data from ConectarAgro revealed that only 33.1% of soybean farms in Brazil have access to 4G or 5G connectivity. Together, these gaps—physical and digital—pose major challenges to scaling precision ag, expanding rural credit, and improving market access. read more, more
🦠 Poultry exports to resume after bird flu suspension – Brazil’s poultry exports, which have been voluntarily suspended to select markets since May 8 due to an isolated case of avian influenza in backyard birds in Santa Catarina, are expected to resume soon following technical discussions with importing countries. The outbreak was swiftly contained and had no impact on commercial production. Despite the targeted suspension, Brazil still exported 393.4 thousand tons of chicken meat in May—a 12.9% decline year-over-year, according to ABPA. read more
⚖️ Brazil bets on AI to tackle judicial backlog – With more than 81 million active cases clogging the judiciary, Brazil is turning to artificial intelligence to accelerate legal decisions and restore investor confidence. Delays in rulings have long created uncertainty for infrastructure and agribusiness projects, particularly in land titling, permitting, and environmental compliance. Now, new initiatives—including AI tools to prioritize and analyze cases—aim to streamline processes and reduce bottlenecks that have hindered growth in key sectors. read more
That’s all for this week, thanks for reading,
KFG 🚀
Kieran Finbar Gartlan is an Irish native with over 30 years of experience living and working in Brazil. He is Managing Partner at The Yield Lab Latam, a leading venture capital firm investing in Agrifood and Climate Tech startups across Latin America.
🧠 New! Paid subscribers now get access to “My Take” — a brief commentary tying together this week’s key trends, offering insight and perspective on what it all means for Brazil’s ag and climate tech opportunity.