Companies seek internationalization to expand markets and competitiveness

The number of Brazilian agribusiness companies seeking internationalization is growing. The sector, which already represents a large part of the country's GDP, takes advantage of Brazil's relevance in global agricultural production to conquer new consumer markets. This increases revenue and diversifies revenue sources.

Maite Schmitt, lawyer and partner at Auro Ruschel Advogados Associados, explains that businesspeople seek internationalization for different reasons, depending on their objectives and goals. “Agribusiness companies aim to expand their businesses to international markets to reach new groups of consumers. Important countries sometimes do not have the wealth of products that Brazilians produce and offer”, she says.

Furthermore, operating in international markets can increase companies' competitiveness by exposing them to new competitors and higher demands. This encourages innovation and efficiency. The international presence strengthens the brand, facilitating the formation of strategic partnerships and alliances with local companies in other countries.

Schmitt highlights that opening a company in a country or region where Brazilian products are already sold brings advantages. One of them is to facilitate access to local resources, technologies and knowledge that are not available in the domestic market. The expert also points out that international expansion can reduce operational costs. “In the agribusiness sector, it is sometimes necessary to have headquarters in the location where the product is registered, in order to be able to sell it,” she says, referring to input industries.

The lawyer considers it “very important” to have specialized legal advice in the internationalization of the company. The work begins with defining the strategy, including choosing the country for expansion. Each location has unique laws and regulations governing agribusiness, from land acquisition to environmental and labor issues. Schmitt's office has trusted local partners, ensuring the company is in compliance with all local regulations.

Legal advice assists in determining the best corporate structure for the company abroad, considering legal, tax and operational aspects. It also helps in obtaining necessary licenses and permits to operate in a new country. Support is permanent, covering corporate changes, capital increases, changes of administrators and drafting of local contracts.

The consultancy also supports issues related to employees, suppliers and partners, in addition to assisting in the tax field in international transactions. In agribusiness, due to competition, the legal protection of assets, such as patents and intellectual property rights, is crucial. “We assist in registering products with the local regulatory body, based on the country’s regulatory legislation”, concludes Schmitt.

Paraguay has been one of the preferred destinations for Brazilian agribusiness companies. The country has large areas of productive land, with relatively low prices and a favorable climate, making it ideal for expansion. The geographic proximity and favorable conditions for agricultural production opened the doors for Brazilian entrepreneurs in the Paraguayan agricultural sector. Various lines of business, from land acquisition to the sale of inputs and final products, are already benefiting from this opportunity.