This article analyzesthe situation of Brazilian agribusiness worldwide, which is characterized primarilyby the ascendancy of China and its demand for agricultural commodities, especiallythe feed chains where the Mercosur, and especially Brazil, becomes the mainsupplier. There is the threat that in this new dynamics Mercosur falls increasinglyon international trade as a mere supplier of raw materials. This scenario iscomplicated due to the transnationalization of the leading companies in thissector. Against this, the agricultural expansion into the Midwest and NorthernBrazil creates opportunities for the raise of new segments in both domesticprocessing activities such as logistics and trade. The importance of marketsfor differentiated products either disappears because if the Northern marketsbecome less dynamic, a new middle class globally appears. We followed a dynamicof domestic market of that overall process. To seize these opportunities, however,Brazil has to negotiate a more complex environment, where leadership in researchand innovation goes to transnational corporations.
