Climate transitions and their impact on Brazil's soy and cattle industries: a partnership case study

“Brazil is the world’s leading producer of soy, but maintaining its competitive advantage depends on adapting to the impacts of climate transitions as the world responds to climate change. Analysing the potential impacts of climate action on this critical sector reveals material financial risks alongside opportunities to invest in a more sustainable and efficient future for soy production” – Orbitas.

 

“Analysis of Brazil’s cattle sector shows that the risks posed by maintaining current production practices and business models are material for investors, producers, and the sector’s entire value chain. Yet climate transitions also open significant new opportunities for producers and investors who stand to benefit from a projected 88 percent increase in agricultural investment by 2050” – Orbitas.

Niamh McCarthy, director for climate-related risk at Climate Advisers, joined Innovation Forum’s Ian Welsh to discuss the future of the Brazilian cattle sector. They shared insights from the latest Orbitas report, highlighting opportunities for farmers to increase yields and diversify revenue streams, while also identifying risks to avoid.

To share findings from Orbitas' report on the impact of climate transitions on Brazil's soy sector, Niamh McCarthy recorded a podcast with Innovation Forum. The discussion with Ian Welsh covered the current state of Brazil's soy industry and potential drivers for positive change.

To explore the reports' findings, Innovation Forum hosted a virtual event in partnership with Orbitas. The event brought together a panel of experts from finance, agriculture, and sustainability to share their unique viewpoints. This collaborative atmosphere, fostered by Niamh’s insightful presentation of the Orbitas reports and contributions from Natasha, Kyle, and the broader Orbitas team, enabled productive discussions on regenerative agriculture and sustainable practices.

Several panellists raised concerns about adopting these proposed practices and shared challenges experienced, such as complications surrounding the new EUDR regulation. Solutions to these challenges were discussed, attracting new and established stakeholders from Innovation Forum's network. The interactive Q&A provided a base for further clarification on the topics and collaboration.

To continue the conversation, Innovation Forum held a closed-door workshop in partnership with Orbitas, The workshop emphasised the need for collaboration among global value chain stakeholders in the soy and cattle sectors. By fostering partnerships across the agricultural sector, Orbitas provided a platform for sharing best practices and developing robust, sustainable solutions to enhance overall resilience. 

Participants raised concerns about adopting proposed practices and shared challenges experienced, such as the new EUDR regulation. Addressing these barriers, Orbitas offered effective guidance on adopting integrated systems that enhance soil health and financial returns, boosting its advisory capabilities. The closed-door nature of the workshop encouraged honest, open discussion, allowing Orbitas to identify key challenges faced by small and medium farmers, such as limited access to technical support and financing. The workshop successfully brought together stakeholders who might not otherwise have interacted extensively, encouraging new collaborations and networking opportunities. This diverse range of participants created a platform for cross-sector dialogue and the exchange of innovative solutions. 

Hosting the virtual event and workshop proved successful in bringing together a diverse array of partners, stakeholders, and farmers. This dialogue addressed the complex issues facing the Brazilian soy and cattle sectors amidst climate transitions. As we look ahead to COP30 in Brazil, upcoming regulatory changes, and shifts in the current political climate, look out for future developments. 

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