Food and beverages drive growth in agribusiness

Brazilian agroindustry ended the first quarter of 2026 in positive territory, supported by the advancement of the food and beverage segments, even in an environment of industrial slowdown and high interest rates. According to a survey by FGV Agro based on the IBGE Monthly Industrial Survey, agro-industrial production accumulated growth of 0.4% between January and March compared to the same period of the previous year.

The quarter's result was consolidated by a recovery in March, when the sector registered an expansion of 2.9% compared to the same month in 2025. The reading for the month, however, was accompanied by reservations: March 2026 had 22 working days, compared to 19 in the previous year, a factor that may have artificially expanded part of the observed growth.

Still, the performance of the agroindustry contrasted with the weakness of much of the manufacturing industry. According to FGV Agro, 14 of the country's 23 industrial segments recorded a decline in the first quarter, while activities linked to the agro-industrial chain remained among the few expanding.

Food and drinks

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The main driver of growth came from the food and beverage products segment, which accumulated an increase of 2.7% in the quarter. Within this group, food products increased 2.6% and beverages grew 3.3%.

The highlight was foods of plant origin, whose production accumulated an expansion of 4.3% between January and March, reflecting the increase in the manufacture of preserves, juices, oils, fats, rice and wheat.

Foods of animal origin benefited mainly from the increased production of meat and dairy products. In March, the segment grew 6.2% year-on-year.

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In the beverage sector, the advance was driven by alcoholic beverages. In March, production in the segment grew 5%, while non-alcoholic drinks fell 0.9%.

Biofuels

At the other end, non-food products continued to put pressure on the aggregate performance of the agroindustry. The segment accumulated a decline of 2.7% in the first quarter. The only relevant exception was the biofuels sector, which advanced 25.1% in the period and helped limit further losses in the general indicator.

The segments of agricultural inputs, textile products and forestry products remained in decline in the year to date, reflecting the lower production of agricultural pesticides, machinery, cellulose, paper and wood.

Source: CNN