Agribusiness executives emphasize reinvention as critical for future viability, with 44% expressing concerns over economic stability without adaptation. Optimism prevails with 76% anticipating economic growth due to strong sector performance, amidst an increased investment in technologies like AI. Leaders are strategically diversifying and partnering to navigate climate-related risks and labor shortages.
Agribusiness executives prioritize reinvention, driven by optimism despite challenges from climate change and the need for digital transformation. The 28th Global CEO Survey by PwC revealed that 44% of Brazilian agribusiness CEOs fear their companies’ economic viability over the next decade unless they adapt, up from 31% in 2024. This urgency drives exploration of new business models, strategies, and partnerships.
Despite past challenges, 76% of CEOs in agribusiness are optimistic about the economy this year, with 48% expecting revenue growth—up from 35% in the previous year. Market optimism is backed by strong performances, particularly in coffee, cocoa, oranges, animal protein, sugar, and a record grain harvest, indicating a recovery trajectory in the sector.
Internationally, expected changes in U.S. tariff policies could benefit Brazilian grain exports, alongside hopes for eased geopolitical tensions in the Middle East. However, CEOs express significant concerns over climate change (56% view it as a major risk) and a skilled labor shortage, alongside other risks like economic instability and cybersecurity threats.
The urgency for reinvention is corroborated by 54% of executives seeking new customer bases and 44% forming partnerships over the past five years. Moreover, the focus on diversifying revenue streams is evident in increased investments in biogas and biofuels as climate concerns grow. This statistic reflects a proactive approach to future-proofing businesses in a changing environment.
The survey highlighted a burgeoning interest in generative AI, with 52% of CEOs stating it has positively impacted employee time management and 26% reporting revenue growth. Looking ahead, 61% of agribusiness leaders anticipate that generative AI will enhance profitability, showing that the sector is beginning to recognize its transformative potential on operations and decision-making processes.
Moreover, 86% of surveyed CEOs intend to invest in AI technology integration into their platforms by 2025, indicating a commitment to leveraging technological advancements. This includes significant plans for enhancing workflows and reshaping business strategies using AI, reflecting an increasing alignment of agribusiness with modern digital trends.
The agribusiness sector faces pressing challenges, including climate change and the rapid acceleration of digital technology. As highlighted in the Global CEO Survey by PwC, executives are recognizing the critical need for businesses to adapt in order to thrive in a competitive environment. Angela’s findings from the survey reveal rising concerns among leaders and underscore the importance of innovation, technology investment, and strategic partnerships in the quest for sustainable and profitable future operations.
In summary, agribusiness executives highlight reinvention as essential to long-term viability, particularly in the face of climate change and technological disruption. There is marked optimism regarding economic recovery alongside investment in innovative strategies such as AI integration. As the sector invests in new technologies and revenue streams, it positions itself for success against emerging global challenges while addressing pressing risks.
Original Source: valorinternational.globo.com
