Brazilian food industry revenue rises despite lower sales volumes

The Brazilian food industry, specifically the sector covering biscuits, pasta, bread, and industrial cakes, reported a revenue of R$ 36 billion in the first half of 2026. According to data from Abimapi and NielsenIQ, this represents a 2.1% increase in revenue despite a 2.1% decline in sales volume. Biscuits accounted for half of this total revenue, generating R$ 18 billion, though their volume decreased by 2.3%.

Simultaneously, the wheat industry faces rising costs. The Wheat Industry Union of São Paulo (Sindustrigo) warned that a combination of climate factors and geopolitical instability is driving up raw material prices. Brazil's 2025/26 wheat harvest is estimated at 5.8 million tons, a 26% decrease compared to the previous season according to Conab.

Global factors, including the conflict between Russia and Ukraine and weather patterns like El Niño, are impacting international supply and logistics. In Argentina, a key supplier to Brazil, excessive rainfall has raised concerns regarding wheat quality, with the USDA predicting a 19% reduction in Argentine exports for the 2026/2027 cycle.