Agribusiness executives emphasize “reinvention” to ensure long-term viability amid climate change and digital challenges. A PwC Global CEO Survey revealed that 44% of Brazilian agribusiness CEOs recognize the need for transformation. More executives remain optimistic about the economic landscape, despite risks such as climate change and labor shortages. The integration of generative AI further enhances operational efficiency and revenue growth, marking a trend towards technological adaptation and sustainability in the sector.
Agribusiness executives recognize the imperative for “reinvention” to sustain their viability amidst challenges posed by climate change and digital transformation. According to the 28th Global CEO Survey by PwC, which incorporated responses from over 4,700 business leaders globally, 44% of Brazilian agribusiness CEOs assert that their companies cannot remain economically sustainable for the next decade without undergoing significant changes. Mauricio Moraes, a PwC Brazil partner, highlights the urgency of resources for reinvention, with companies exploring novel business models and partnerships.
The survey reveals a growing optimism among agribusiness CEOs, with 76% expressing confidence in the economic outlook for this year, a rise from 69% in 2024. Additionally, 48% anticipate revenue growth this year, a notable increase from 35% the previous year. Moraes notes positive performances in key sectors, such as coffee and cocoa, and suggests that agro-industries are optimistic about thriving amidst a record grain harvest this year, despite previous challenges in 2024.
On an international scale, there are expectations that U.S. tariff policies could enhance Brazilian grain exports, while easing geopolitical tensions in the Middle East may further benefit the sector. Nevertheless, CEOs have expressed apprehensions regarding climate change and a scarcity of skilled labor. Alarmingly, 56% of the executives cite climate change as their foremost business risk in the forthcoming year, starkly contrasting the national average of 21%. Simultaneously, 47% have reported increased revenues due to climate investments over the last five years, in contrast to the national average of 30%.
Given the realities of agribusiness as an “open-air factory,” concerns about climate risks are evidently heightened. Recent climatic events, such as floods and droughts affecting Brazil’s regions, serve as a stark reminder of these vulnerabilities. Workforce education has emerged as the second-greatest concern for 38% of executives, followed by risks associated with economic instability (30%), inflation (22%), and cybersecurity threats (20%).
Importantly, the survey indicates an escalating recognition among CEOs about necessary reinvention. The percentage of agribusiness leaders fearing economic unviability within ten years without reinvention jumped from 31% in 2024 to 44% in this year’s survey. Many executives are proactively pursuing new markets, innovative products, and strategic partnerships in their initiatives for transformation, with 54% seeking new customer bases and 48% developing new offerings.
Forecasting the future, 44% of agribusiness leaders are diversifying revenue sources, focusing on biogas and biofuel production linked to climate investments. Furthermore, the survey highlights an increasing interest in generative artificial intelligence (AI). Fifty-two percent of respondents note that generative AI has enhanced employee time management, with others reporting growth in revenue and profitability.
Looking ahead, 86% of CEOs intend to invest in AI integration within their technology platforms over the coming three years, surpassing the national average. Among these executives, 82% seek to utilize AI for improving business processes, while 64% plan to employ it to redefine their strategic frameworks. The outlook for agribusiness is increasingly positive, with technology playing a pivotal role in its evolution and resilience.
The agricultural sector is facing unprecedented challenges driven by climate change and the urgent need for digital transformation. Reinvention has become a keystone for agribusiness sustainability as business leaders are compelled to adapt to an evolving economic landscape. The PwC Global CEO Survey provides insights into the perspectives of agribusiness leaders regarding their strategies for resilience in the face of such adversities and their optimism for growth despite these challenges. Surveys like these often reveal the sentiment of leaders and illuminate trends within industries, enabling a focused approach to economic planning and strategic partnerships. Agribusiness, with its direct ties to climate variables, requires its executives to prioritize sustainability while exploring innovative avenues for development.
In conclusion, the findings of the PwC Global CEO Survey indicate a fundamental shift within the agribusiness sector, emphasizing the critical nature of reinvention in securing economic viability over the next decade. As CEOs express growing optimism about the economy and revenue growth prospects, they remain acutely aware of risks such as climate change and labor shortages. The sector’s focus on innovative strategies, partnerships, and technologies like generative AI positions it favorably for future advancement. Ultimately, agribusiness’s journey towards sustained growth hinges on its ability to adapt to changing conditions and embrace transformative practices.
Original Source: valorinternational.globo.com
