Agribusiness CEOs express optimism for 2025, but recognize the urgent need for reinvention due to climate change and digital transformation. Notably, 44% believe without reinvention, their companies will be unsustainable in ten years. While concerns about climate impacts and labor shortages persist, many are pivoting to new business models and employing technologies like generative AI to enhance operational efficiency and profitability.
Agribusiness leaders are prioritizing reinvention amidst economic optimism. According to PwC’s Global CEO Survey, conducted with 4,700 leaders worldwide, there is a notable emphasis on adapting to climate change and digital advancements to ensure long-term viability. In Brazil, 44% of agribusiness CEOs now express concern about their companies’ economic sustainability over the next decade without embracing such changes, a significant increase from 31% last year.
Mauricio Moraes of PwC Brazil stated, “The need for reinvention is urgent, and we have seen significant moves by companies exploring new business models.” Regarding the positive economic outlook, 76% of agribusiness CEOs hold an optimistic view for this year. This enhances from 69% in 2024, with 48% now confident about revenue growth, rising from 35%. Additionally, 66% anticipate growth in revenues over the subsequent three years.
The previous year saw challenges; however, sectors like coffee, cocoa, and oranges exhibited strong performance, and favorable conditions are expected for animal protein and sugar. A record grain harvest is also anticipated, while experts note that U.S. tariff policies may favor Brazilian grain exports. Furthermore, there are hopeful signs of calmer geopolitics in the Middle East.
Notwithstanding the optimistic sentiment, worries about climate change and skilled labor shortages persist. In the survey, 56% of executives identified climate change as their primary business risk, considerably higher than the national average of 21%. Interestingly, 47% reported revenue increases linked to climate-related investments in the past five years, outpacing the national average of 30%. Mr. Moraes elaborated, “Agribusiness operates in an open-air factory,” underscoring natural concerns following severe weather events in recent years.
Workforce qualifications are deemed the second greatest threat, cited by 38% of leaders. They also pointed to economic instability, inflation, geopolitical tensions, and cybersecurity threats as additional risks. Notably, the percentage of CEOs fearing economic viability decline continued to rise from 31% in 2024 to 44% in 2025.
Many companies are already pursuing reinvention strategies, with 54% seeking new customer bases, 48% introducing innovative products, and 44% establishing partnerships. Emphasizing diversification, Mr. Moraes noted that 44% of agribusiness CEOs are actively working to create new revenue streams, including investments in biogas and biofuel production related to climate initiatives.
The survey indicates a growing interest in generative artificial intelligence among CEOs. Notably, 52% reported improvements in employee time management due to generative AI, while 26% noted revenue growth. Furthermore, 61% expect generative AI to enhance profitability going forward. Mr. Moraes remarked on the positive outcomes this technology has started to yield within the sector.
A significant 86% of CEOs indicate plans to integrate AI into their technology platforms by 2025, well above the national average. Investment strategies encompass improving business processes, reshaping business models, and increasing overall operational efficiency. These forward-looking strategies signal an important pivot in the agribusiness sector as it adapts to emerging challenges and opportunities.
The article draws from PwC’s 28th Global CEO Survey, which highlights the growing need for agribusiness leaders to reinvent their companies in response to global economic conditions, climate challenges, and technological advancements. In Brazil, an impactful shift is observed among agribusiness CEOs regarding their perceptions of sustainability, economic viability, and the integration of innovative technologies.
Overall, agribusiness executives display increased optimism about the economy while acknowledging pressing challenges such as climate change and the necessity for digital transformation. The shift towards reinvention is clearly visible, as leaders actively seek new business models and embrace technologies like generative AI to secure their companies’ futures and drive sustainable growth in an evolving market environment.
Original Source: valorinternational.globo.com
