From valorinternational · · 1m 20s
Government plans Conab subsidiary for 2027
Brazil's government aims to create Conab's independent subsidiary by 2027 to boost revenue and reduce budget reliance.
In brief
Brazil's government aims to create Conab's independent subsidiary by 2027 to boost revenue and reduce budget reliance. Brazil's federal government plans an independent Conab subsidiary for 2027 to reinvest agricultural sales revenue and cut federal budget dependence. Originally reported by valorinternational.
Government considers Conab subsidiary
The federal government is considering setting up an independent subsidiary for the National Supply Company (Conab) in 2027.
Goal of subsidiary
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The goal is to allow revenue generated by the state-owned company, from sales of agricultural products held in public stocks and the leasing of storage facilities and services, to flow directly into the company’s own…
Conab revenue growth
Conab recorded sales of R$78 million in 2023, R$130 million in 2024 and R$194.6 million in 2025, with sales reaching R$158.4 million this year.
Conab financial strategy
The state-owned company is also considering a voluntary severance program to ease financial pressure on its nearly 3,000 employees with an annual payroll approaching R$1 billion.
Severance program target
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The program targets around 1,000 former employees from the Brazilian Food Company and Brazilian Storage Company who joined Conab after amnesty under President Fernando Collor (1990-1992).
Conab modernization plan
Conab's new operating model requires legal framework changes with input from BNDES and Sest to modernize its structure and financial sustainability.
The bottom line
Brazil's federal government plans an independent Conab subsidiary for 2027 to reinvest agricultural sales revenue and cut federal budget dependence.
