Why American Companies Are Flourishing in Brazil

 Over the past two decades, Brazil has emerged as a direct competitor to the United States in the global agricultural market. Many US farmers and agriculture manufacturers have expanded operations into Brazil to capitalize on the swiftly expanding industry, which is characterized by an abundance of sunlight and natural resources, extensive land, and low farmland prices. Brazil is the focal point of attention. Brazil's ascent to agricultural prominence commenced in the mid-20th century, when it emerged as the primary producer and exporter of coffee. Soybeans, which were more valuable, became Brazil's primary export toward the close of the century. Currently, Brazil is regarded as one of the top livestock countries and produces approximately one-third of the global orange supply. This is due to the extensive grazing lands in its southern region. However, the climate is the primary attraction for cultivators in Brazil. Brazil is the leading maize exporter from September to January due to the absence of freezing winters, which allows farmers to cultivate an additional corn crop.

The prices of maize, soybeans, and other crops in the United States are substantially affected by Brazil's prolonged corn export season

According to USDA research, Brazil's competitiveness, natural resources, and significant potential for development and expansion render it an attractive market for both farmers and agricultural manufacturers. Approximately one-third of Brazil's land is utilized for agricultural purposes, as indicated by a recent article published by Statista. Brazil's agriculture is exceedingly affordable due to its status as one of the world's largest countries in terms of landmass. In contrast to the $12,000 to $15,000 price range of US farmland, Brazil's farmland would sell for between $500 and $1,500 per acre in 2012.This price range was highly desirable. Phil Corzine, a fourth-generation farmer from Illinois, was interviewed by Aljazeera. He achieved significant success by relocating his soybean farming enterprise to Brazil.

"I never imagined that I would be overseeing a farm in Brazil." Corzine stated, "It is a significant improvement from my initial position." "I can acquire a significantly greater quantity of land in this region with a significantly lower budget..." Therefore, our actions are motivated by availability and price. Farmers are perpetually seeking methods to increase their production at a minimal expense. They have the opportunity to invest in productive land, chemicals, and apparatus in Brazil, all of which are available during the extended growing season. It is unsurprising that Brazil's agricultural export status has improved, resulting in a global market that is eager for their products and providing producers with the assurance that their crops will not be wasted. Farmers, like other commodities, are obligated to compete on a global scale with free trade; consequently, their equipment and component suppliers are also obligated to do so. Due to regional regulations and consumer preferences, equipment manufacturers are unable to produce globally accepted products. Consequently, these manufacturers of agricultural equipment should anticipate local customization.

North American manufacturers have also begun migrating south to provide greater support in order to comply with the demands of Brazil's farmers

In 2018, John Deere, AGCO, and CNH accounted for nearly 90% of all tractor and combine harvester sales in Brazil, according to Globe Newswire. The term "Made in the USA" is a societal endorsement that instills a sense of enthusiasm and pride in the American consumer. According to Pivot International, goods manufactured in the United States are associated with superior quality, which implies that there are more employment opportunities for Americans and that the labor conditions are fair. American manufacturers are recognized for their transparency regarding their production processes, and the production of goods in the United States facilitates quicker turnaround and delivery times for North American businesses. The utilization of domestic manufacturing in the United States results in improved IP security, more flexible payment options, and reduced shipping costs. Nevertheless, domestic manufacturing is rarely cost-competitive as a result of the mandated minimum wage for workers and production limitations resulting from inefficient set-ups for high-volume production, despite the existence of these compelling advantages. Brazil is a preferred destination for US manufacturing companies and serves as a gateway to South America, as per the TMF Group. "Today, the country continues to be an exceptionally appealing investment opportunity for organizations worldwide." Sixty-six percent of Brazil's rural populace and thirty-eight percent of its urban residents were living below the poverty threshold twenty-five years ago. If US companies establish connections and familiarize themselves with local cultures and businesses, they have an exceptional opportunity to prosper in Brazil. Nevertheless, conducting business in Brazil necessitates navigating the complexity of the "Custo Brazil" culture. One of the most intricate tax systems in the world is that of Brazil. The Brazilian government has the ability to impose a substantial tax on any product that is not produced in the country, as per the Management Study Guide. This makes it challenging to purchase high-quality equipment, as a significant portion of it is not manufactured in Brazil. Additionally, the government has implemented substantial taxes on imported capital products, which ultimately burden low-income Brazilian citizens. In labor laws, taxes are also a significant factor, as salaries are extensively taxed and there is no employment at will.

Brazil is also perceived as having one of the most deficient infrastructures as a result of an indebted population and an outstanding federal debt

The term "Custo Brazil" is a euphemism that is used to characterize the severe financial circumstances in Brazil. Brazilians are notorious for incurring debt to acquire convenience items on credit, as they are unable to finance an average lifestyle. TMF suggests that in order to successfully navigate the challenges and pitfalls of conducting business in Brazil, it is advisable to seek local expertise, as there are numerous advantages and disadvantages to relocating your agricultural business. We at Weasler Engineering comprehend the current global influences that influence the decisions of producers. Although we are proud to be based in the United States, our global presence enables us to provide efficient and effective service to consumers at any time and in any location. Although our corporate headquarters and manufacturing center of excellence are located in the United States, we also have sales offices in the Netherlands and Brazil, as well as manufacturing locations in Hungary and Turkey. This enables us to be the preferred supplier, irrespective of our location. The Weasler brand has been widely recognized for its exceptional service, consistent reliability, on-time delivery, and unsurpassed quality since 1951. We are eager to maintain that legacy by offering local, regional, and global supply chain support to the agricultural equipment manufacturers that facilitate our farmers' global success.