Brazil sees rise in judicial recovery filings, led by agribusiness

Brazil has seen a significant rise in judicial recovery filings, a trend driven largely by the agribusiness sector. Data from RGF Associados indicates that the number of companies in judicial recovery grew by 20.5% between June 2025 and June 2026, rising from 6,409 to 7,726 organizations.

Agribusiness experienced a 66% increase in filings, which is three times the national average. Factors contributing to this pressure include falling commodity prices, adverse weather events, high working capital requirements, and expensive rural credit. Within this sector, the soybean supply chain, beef cattle, and sugarcane are most affected. Notably, Agrogalaxy filed for judicial recovery in September 2024 with debts totaling R$ 4.1 billion.

Other sectors also reported increases, with commerce rising by 22% and manufacturing by 9%. High interest rates and reduced consumer spending power have further strained corporate cash flows.

It is important to distinguish these judicial recovery filings from bankruptcies. While social media reports have incorrectly claimed a record number of bankruptcies, official data shows that bankruptcy numbers have actually been declining in recent years, whereas judicial recovery requests have reached new highs.