RaboResearch Food & Agribusiness Brazil

In the fifth episode of our Growing Brazil podcast series, we turn the spotlight onto Brazil's cellulose pulp and paper sector. This sector enjoys some natural competitive advantages thanks to the world-beating rate of growth of raw material—mostly eucalyptus trees—produced on Brazil's plantations and private farms. Over the last decade, the sector's output and exports have been growing significantly, with China becoming an ever-more important market. However, looking ahead, there are challenges: digitization has impacted the paper market in some regions, pulp and paper prices can be volatile, and investments in new capacity represent a major financial commitment for producers. Senior economist Andrés Padilla, a pulp and paper specialist from Rabobank Brazil's Food and Agribusiness research team, talks us through the current situation and future outlook for the sector.