AGRICULTURE

The agriculture sector across BRICS countries (Brazil, Russia, India, China, South Africa) offers immense opportunities due to vast arable lands, growing populations, and rising food demand. However, these markets also present a complex matrix of political, regulatory, and environmental risks. International corporations face challenges related to inconsistent policy frameworks, government interventions in pricing and subsidies, and unpredictable regulatory shifts. In many cases, sudden changes in trade policy, export bans, or local content requirements can disrupt long-term investment plans and supply chains.

Operational risks are compounded by infrastructure gaps, land ownership ambiguities, and exposure to climate variability. Brazil and South Africa, for instance, face water scarcity and land degradation, while Russia and China must navigate extreme weather and logistical bottlenecks. In India, fragmented land holdings and dependency on monsoons create further unpredictability. Corruption, bureaucratic inertia, and weak enforcement mechanisms add layers of difficulty in navigating compliance, taxation, and environmental regulations.

Social and geopolitical risks also weigh heavily. Land-related disputes, activism against foreign land use, and socio-political volatility—particularly in rural areas—can stall projects and provoke reputational damage. Furthermore, geopolitical tensions (e.g., sanctions on Russia or trade friction with China) may suddenly alter access to markets or financing. In this environment, corporations must adopt a deeply localized and agile risk management strategy.