Brazil’s agricultural input distribution sector generated approximately US$33 billion in revenue in 2025, underscoring the strategic role of distributors in supplying inputs, marketing commodities and providing services throughout the country’s agricultural value chain.

The figure, equivalent to R$171 billion, comes from the 11th National Distribution Survey conducted by the National Association of Agricultural and Veterinary Input Distributors (Andav), in partnership with the Center for Advanced Studies on Applied Economics (Cepea-Esalq/USP). The results were presented on August 13, during the final day of the 2026 Andav Congress in São Paulo.

Of the total revenue, approximately US$20.2 billion (R$105 billion) came from agricultural inputs, US$8.3 billion (R$43 billion) from grain trading and US$4.4 billion (R$23 billion) from machinery, services and other activities.

The survey highlights the scale of the role of distributors in Brazil’s agricultural economy. According to Andav Executive President Paulo Tiburcio, distributors account for 47% of all agricultural inputs reaching Brazilian farmers.

Soybeans remained the leading crop served by distributors, representing 43% of their business activity, followed by corn at 20%. Among input categories, chemical crop protection products accounted for 43%, followed by soil-applied fertilizers at 17% and seeds at 16%.

The sector’s relatively mature business base also provides resilience in a market characterized by commodity-price volatility, weather risks and credit exposure. Some 82% of distribution companies have operated for more than 11 years, according to the survey.

The number of distribution outlets increased 3.5% compared with January 2025. Looking ahead, 32% of companies surveyed plan to open new units by 2028, signaling cautious optimism regarding the sector’s expansion.

Distributors finance one-fifth of Brazilian agribusiness

Beyond logistics and commercial activities, agricultural input distributors have become an important source of financing for Brazilian farmers.

Andav-affiliated distribution companies operate in 1,041 municipalities and account for approximately 20% of agribusiness financing in Brazil, according to data presented at the Andav Congress panel ″Distributor: Market Access.″

The panel examined credit management, relationships with manufacturers, service expansion, and the need to prepare distribution teams for the adoption of new technologies.

″Credit provision has now become a pillar, as important as the commercial operation,″ said Ricardo Bonacin, CEO of Núcleo Agrícola.

Meanwhile, Aldair Santos, CEO of Precisão Rural, emphasized that credit decisions should be based upon information, proximity to farmers and shared analysis, while Paulo Lima, partner and director at RUMO.Agro, highlighted legal risks and the need for stronger internal credit processes and more effective collateral.

China, soybean dependence and value addition

The outlook for Brazilian agriculture was also addressed at the congress by Carlos Cogo, partner and director of consulting at Cogo Inteligência em Agronegócio.

China has achieved high levels of self-sufficiency in commodities such as rice, wheat and pork, but faces greater constraints in corn and particularly soybeans because of limited land and water availability.

Brazilian soybean exports to China have grown by an average of 9% annually over the past 25 years. Although Cogo does not expect that pace to continue, he considers it unlikely that China will achieve soybean self-sufficiency.

For Brazil, he identified value addition as a key strategic avenue as producers face increasing margin pressure.

″From now on, the agenda will be value addition, with soybeans also being exported through biodiesel, meat, other proteins and so on,″ Cogo said.

The combination of input distribution, agricultural credit and value-added production is likely to become increasingly important as Brazil’s agribusiness sector seeks to sustain growth while managing tighter margins and increasingly complex production economics.

(US$1 = R$5.19, based on the BRL/USD market rate on Aug. 14, 2026) from agropages.