Cooperativism stands as a cornerstone for the support and expansion of agribusiness in Brazil. According to the 2023 Yearbook of the Brazilian Cooperatives Organization (OCB), the country has 1,185 registered cooperatives in the agricultural sector, encompassing over 1 million cooperative members and generating R$ 430 billion in revenue, with a surplus of R$ 22.5 billion in the last fiscal year, based on assets valued at R$ 267 billion.
Within the OCB system, 65% of agricultural cooperatives focus on input and supply goods, 58% on non-industrialized plant-based products, and 34% on non-industrialized animal-based products, with these activities not necessarily exclusive to a single segment. Additionally, other areas of operation include the production of industrialized plant or animal-based items, services, and technical education institutions.
Nine Brazilian agricultural cooperatives were listed among the Top 300 across all sectors in the 2023 World Cooperative Monitor report, with notable mentions for Copersucar, Coamo, and Aurora, ranking among the top ten in terms of gross revenue per employee in the global agribusiness ranking.
However, the significance of cooperatives transcends the industry giants, as the benefits of cooperativism manifest even on smaller scales. Within cooperative environments, members enjoy facilitated access to integrated solutions, ranging from input procurement and access to credit lines to marketing channels, warehousing, logistics, as well as technical and technological consultancy.
Brazilian legislation establishes the National Cooperative Policy and the legal framework for cooperative societies through Law 5,764/71, outlining their constitutive characteristics, classifications (whether singular, central, or confederative), capital structure, and management, among other relevant provisions.
Due to their nonprofit nature, surpluses obtained within the cooperative framework are not subject to Income Tax (IR) and Social Contribution on Net Income (CSLL) and are commonly redistributed to members in proportion to their contributions to the social capital and economic activities carried out.
Export Potential of Cooperatives and Their Challenges
One of the most relevant opportunities for the advancement of agricultural cooperatives lies in increasing export volumes. According to data from the Ministry of Industry, Foreign Trade, and Services, only 6% of the total export volume in the sector is conducted by agricultural cooperatives, contrasting strongly with their significant participation in the national production process, which reaches approximately 50%.
As a challenge, expanding export activity requires not only greater exposure to international markets through marketing programs and events but also improvement in product and process quality. In this regard, cooperatives rely on government support through agencies such as Apex (Brazilian Trade and Investment Promotion Agency) and initiatives such as PEIEX (Export Qualification Program), which provide free training over periods ranging from three to six months to assist participants in developing export strategic plans.
However, overcoming qualification-related barriers represents only one aspect of the challenges faced by cooperatives. Another crucial issue lies in adding value to exported products. The transition from commodities to higher value-added products, such as processed fruit juices, roasted and ground coffee, as well as ready-to-consume meat and poultry cuts, poses additional challenges to achieving international competitiveness, such as labor costs, inputs, equipment, logistics, and, not least, taxation.
In addition to cost and product quality issues, Brazilian exports face a series of regulatory, commercial, sanitary, and phytosanitary challenges. For example, Brazil still does not have authorization to export pork to the European Union, due to concerns about the quality and effectiveness of the Brazilian sanitary control system, stemming from a history of foot-and-mouth disease cases in certain regions of the country. Among the main markets, China stands out as one of the countries imposing stricter protectionist measures. For example, the country charges an import tariff of 7.5% for orange juice at a temperature of -18°C, with the tariff increasing to 30% if the product is exported at a temperature above -18°C (temporarily reduced to 15%).
In the case of coffee, China also applies a tariff escalation to discourage the export of higher value-added products, imposing an 8% tariff for raw beans, while coffee essence faces a 32% tariff. Additionally, as a technical barrier, Chinese legislation establishes stricter requirements for the registration of foreign food producers, requiring additional certifications, audits, and inspections.
In summary, cooperatives emerge as key players in the competitive integration of small and medium-sized producers into the complex context of global agribusiness, enabling benefits of scale, expertise, and qualified access to suppliers, partners, and customers, while facing challenges inherent to the international dynamics. Therefore, the success of Brazilian agribusiness is strongly linked to the development and prosperity of cooperativism, considering its social and economic roots in the country.
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