The BrasilAgro case story explores whether a pioneer in agricultural production in Brazil that has rapidly become a major holder of farmland can become a template of global agrarian capitalism by increasing its exposure to a widening international pool of financial investors. BrasilAgro, which is controlled by Cresud from Argentina, was the first publicly listed company active in farmland acquisition on the “Novo Mercado” segment of the São Paulo Stock Exchange (2006). In 2012 it also became the first Brazilian agribusiness company to list American Deposit Receipts (ADR) on the New York Stock Exchange. The acquisition by financial firms of land with agricultural potential in emerging and developing markets is a global trend that has gained momentum since the turn of the century. Some have seen this trend as an opportunity to draw capital and reverse underinvestment in agricultural production while fostering technological transfer. Others see this as a trend that could lead to conflict over land and environmental degradation and that will tend to accentuate inequality. Brazil is at the forefront of this debate, having become one of the principal recipients of international financial investment in farmland. The BrasilAgro model of acquisition, development, operation and sale of large-scale agricultural properties adds value for its shareholders by transforming land, making it productive, generating high-volume production and fostering the price appreciation of rural properties. Its transparent and compliant approach places BrasilAgro in the lead from a corporate governance perspective compared to many ventures seeking to exploit farming potential in Brazil’s new agricultural frontier (the tropical savannah known as the Cerrado). The model is highly efficient and generates economic value in response to rising global demand for food, feed and fuel. But at what social and environmental cost? Long term, can BrasilAgro maintain its profitability and expand while holding true to beneficial social and environmental norms? In other words, does its business model provide a new standard for effective agricultural development and commodity production in developing economies or is it just another example of successful real estate speculation with limited lessons for other economies?
Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football
Asia's economic landscape 2024 and 2025. Three distinct approaches: Japan's technology-driven revival amid demographic challenges, China's deflation and growth concerns, and India's manufacturing ambitions through foreign investment and strategic ...
You won't be able to understand how power operates in your unique context on your first day in the company, but it's highly achievable after about six months of closely observing the environment. You won't be able to understand how power operates ...
David Michels, CFO at Kinder Morgan, a US energy infrastructure company, explores how rapid AI and data center growth have quickly reshaped energy demand
Keeping healthy and prioritizing your emotional and physical well-being during Christmas and New Year is important to avoid burnout caused by the stress and pressure of the holiday season.
After a few false dawns, we could finally be on the eve of the quantum era – which means organizations need to start thinking about encryption now. Here's what you need to know. After a few false dawns, we could finally be on the eve of the quantu...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications