Brazil is rich in natural resources. With an abundance of land and water, the country’s thriving farming and agricultural industry could help grow the many ETFs tracking Brazil.
“What no one knew 35 years ago is that Brazil had the capacity to become the breadbasket of the world,” Davidson said in the article.
The Empresa Brasileira de Pesquisa Agropecuaria, or Empresa, a technical firm associated with the Brazilian Ministry of Agriculture, engineered tropical versions of temperate crops, such as soybeans and corn, that would mature faster and be more resistant to pests. Consequently, Brazilian farmers can produce two crops per year, whereas most U.S. farmers would only be able to produce one in a full crop year.
The firm also devised a new breed of grass that increase pasture yields, which helped expand the country’s cattle herds in just a few decades.
Additionally, with the implementation of “no-till” farming, overall average yields for soybeans in Brazil surpassed the average yields in the U.S. by 2002, and costs for producing soybeans dropped to $6.23 per 60 kilos, compared to the cost of $11.72 in the U.S.