The Brazilian

Farmer’s

Mind

2022

By Nelson Ferreira, senior partner
Mikael Djanian, partner
Ana Luiza Mokodsi, engagement manager

Mente do agricultor brasileiro

2022

Nelson Ferreira,
sócio sênior da McKinsey

McKinsey has gone to field for the 3rd consecutive year to understand farmers’ mindsets in a rapidly-evolving world

2020 - 2022

Brazil

800k+

data points from Brazilian farmers collected cumulatively over the past 36 months

2000+

​ farmers

interviewed over the past 3 years across the main agricultural regions of the country

Cerrado

Centro-Sul

MATOPIBA

Sul

5

culturas

abordadas na nossa pesquisa:

Grains

Cotton

Sugarcane

Coffee

Vegetables

5

cultures

covered on our survey assessment

200+

questions

covering the full planting and harvesting season, with special focus on the evolution of farmers digital preferences for purchase of inputs and equipment and sale of productions as well as technology and sustainability adoption

2022

9 countries

+ 1,5M

data points from farmers in 10 different geographies collected in 2022

+5600

​ farmers

interviewed in 2022 across 10 of the most important ag producing countries in 4 regions of the world

3

cultivos

abordados em nossa pesquisa:

Row crops

Specialty crops

Livestock

3

crops

covered on our survey assessment

Survey

highlights

2022

01

Digital interactions have plateaued

after spiking during the pandemic

Brazilian farmers’ preference for digital interactions dropped considerably after the pandemic, in line with the trend observed in the US

Farmers who prefer online channels for farm purchases;

% of respondents

Source: “The Brazilian Farmer’s Mind in the Digital Era – Pulse 2021”, McKinsey, February 2021 (n=564 respondents); McKinsey Chemical & Agriculture Digital Customer Decision Journey Survey in Europe (n=100); 2020 Digital Farmer Survey; McKinsey Digital Grower Survey, September 2020

02

Most farmers blend in-person and digital

hybrid approach prevails in buying and selling journeys

71% of surveyed farmers use digital in their purchase journey

Usage of digital channels in the purchasing journey

Q: How do you currently make your agricultural purchases (multiple responses allowed) (N=761 respondents)

1. E-commerce and/or marketplaces
Source: McKinsey’s The Brazilian Farmer’s Mind in the Digital Era, 2022 Edition – May 2022

03

Use of marketplaces is growing

two platforms emerge as top-of-mind

Online channels used most often

Q: What digital platform/e-commerce marketplace/website do you use most often for online purchases? % of respondents (N=96 respondents; 107 responses)

Fonte: The Brazilian Farmer’s Mind in the Digital Era da McKinsey, Edição 2022 – maio de 2022

Trust is the main barrier while using online platforms

Main challenges to adopt online channels

Q: What are the biggest challenges to purchase agricultural products online (vs in person/ voice based)?; % of respondents (n=761)

Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022

04

Farmers expect profitability to remain high

and are buying less on credit / barter

Farmers are optimistic about the next 2 years:

80% expect profits to remain stable or increase

Profit expectation over next 2 crops

Q: How do you expect your profits to change in the next 2 years?; % of respondents

Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022

Barter used

Q: Do you use barter?; % of respondents (n=761)

Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022

High liquidity of the past 2-3 years has led farmers to decrease bartering

35% of farmers still use cash as main source of payment, and 32% in-store credit and bank financing

Working capital funding and farm equipment purchases are the top 2 reasons for obtaining financing

92%+ of farmers see interest rates as a main challenge to obtaining financing

05

Early adopters of farming technologies

seem to be large, young grain producers

About 50% of farmers already adopt or are willing to adopt farming technologies for their operations

Precision farming technologies adoption and willingness to adopt

% respondents currently adopting or willing to adopt over next 2 crops

Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022

06

Brazilian farmers lead adoption of sustainable practices

no-till adoption rates over 80%; cover crops and biologicals, ~60%

Yields benefits and lower production costs are the most important reasons that would promote adoption of sustainable practices

Sustainability practices adoption, % of respondents (N = 761)

Q: What is your level of adoption on the following sustainable farming practices and energy and water efficient operations?

1. N=564
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022

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07

Few participate in a carbon program

only 6%, half the percentage seen in Europe

More active offering ​ and clearer explanation can lead farmers to adopt carbon programs

Top 3 reasons to not adopt carbon programs

Q. What are the top reasons why you have not yet or will not participate in a carbon program? Rank top 3

Related links

Authors

Mikael Djanian

Partner

São Paulo
McKinsey & Company

Ana Luiza Mokodsi

Engagement Manager

São Paulo
McKinsey & Company

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