---
title: "Itau BBA eyes 10% Brazil agri growth as Iran war lifts costs, biofuel demand"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284028865.md"
description: "Itau BBA anticipates a 10% growth in Brazil's agribusiness portfolio by 2026, driven by rising fuel and fertilizer costs due to the Iran war, which is also increasing biofuel demand. The portfolio is expected to grow from 135 billion reais ($26.92 billion) despite tighter margins affecting grain producers. Higher oil prices may boost ethanol consumption, and strong performance is expected in cattle ranching, coffee, and cotton sectors. Loan payment delinquency is projected to remain stable or decline in the upcoming months."
datetime: "2026-04-24T15:15:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284028865.md)
  - [en](https://longbridge.com/en/news/284028865.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284028865.md)
---

# Itau BBA eyes 10% Brazil agri growth as Iran war lifts costs, biofuel demand

SAO PAULO, April 24 (Reuters) - Itau BBA expects 10% growth in its agribusiness portfolio in 2026 as the Iran war raises fuel and fertilizer costs while also boosting biofuel demand, the investment bank's agribusiness director Pedro Fernandes told Reuters.

\-- The portfolio is set to grow from 135 billion reais ($26.92 billion) recorded at the end of last year, despite tighter margins reducing grain producers' investment appetite, Fernandes said. -- Higher oil prices from the conflict could drive ethanol consumption, including through a potential increase in Brazil's gasoline blend to 32% from 30% being studied by the government.

\-- The Iran war will weigh more on planning for the 2026/27 grain crop, raising costs for fuel and fertilizers, he said.

\-- Sugar and ethanol producers have strong cash positions despite low sugar prices, he added, having capitalized during a period of high margins and positioning them to maintain investments in cane field renewal.

\-- "Ethanol price prospects for the 2026/27 crop are better than they were two months ago," Fernandes said.

\-- The bank also sees strong performance in cattle ranching, with beef prices near record highs due to Chinese demand, as well as in the coffee and cotton sectors.

\-- Delinquency on loan payments is expected to remain stable or decline from early April to late May, a critical payment period, the executive added.

($1 = 5.0155 reais) (Reporting by Roberto Samora; Writing by Kylie Madry; Editing by Gabriel Araujo)

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