Brazilian Agriculture: Recent Development

BRAZILIAN AGRICULTURE -

RECENT DEVELOPMENT

Brazilian agriculture: before 1970's

Low Ag production and low yields Production concentrated in South/Southeast Food supply crisis Rural poverty Lack of specific knowledge on Tropical Agriculture Institutional void (ag research, education, markets, media

and governmental agencies, etc.)

THE TASK: TO MOVE FROM TRADITIONAL AGRICULTURE TO

AGRICULTURE BASED ON SCIENCE & TECHNOLOGY.

Source: MAPA / Biomes MMA 2006 / ABRAF

BRAZILIAN TERRITORY

Amazon Biomes 420 M ha

Crops 77 M ha

Planted Forests 6 M ha

Brazil 851 M ha

BRAZILIAN BIOMES

Source: Conab / MAPA and IBGE (pastures – 2006)

MAIN CROPS - Area2007/2008 Harvest

Most of recent expansion

in agricultural area is on

pasture land

Source: CNA

MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION (June 2009)

Harvesting soybean

Harvesting cotton

Corn field

Soybean field

GRAINS AND FIBERS

GRAINS - Production and Area(1991 to 2010*)

Harvested AreaGrowth: 27% = 1.3% / year

Production

Growth: 145% = 4.8% / year

Source: CONAB.

*Estimate: October/ 2009

05/21/09

Viabilization of agriculture in the Cerrado

1960

1975

2005

Evolution and expansion of soybean in Brazil

Harvesting soybeans

Sowing corn(2nd harvest)

Scale, mechanization

Two crops in the same year without irrigation

No tillage (environmentally friendly)

MEAT Large scale, state of the art production

Biggest exporter of beef and poultry

Meat Production1994 - 2008

Meat Production1994 - 2008

Source: ABIEC, ABEF, UBA and ABIPECS

9,0119,2008,950

5,200

10,88010,305

9,530

3,411

3,0293,026

2,870

1,330

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Th

ou

san

d M

etri

c T

on

s

Beef: +73 % (94-08)

Pork: + 128% (94-08)

Broiler: + 212% (94-08)

MILK - increase on production led to self

sufficiency and exports

Milk Production1990 - 2008

Milk Production1990 - 2008

Source: ABIEC, ABEFand, UBA

14.000

16.000

18.000

20.000

22.000

24.000

26.000

28.000

30.000

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Th

ou

san

d M

etri

c T

on

s

+ 99 %

SUGAR CANE sustainable energy production

0

5

10

15

20

25

30

35

40

Pro

du

cti

on

0

2

4

6

8

10

12

14

16

18

20

Ha

rve

ste

d a

rea

(millio

ns

ha

)

Harvested area Sugar (million tons) Ethanol (million m³)

SUGAR and ETHANOL: Production and Area

* Estimate (2nd Sugar Cane Harvest Survey: September/ 09)

SUGARGrowth 2002-2009: 93.2% (8.6% p.y.)

ETHANOLGrowth 2002-2009: 142.4% (11.7% p.y.)

Sources: SPAE / MAPA and CONAB / MAPA

Harvested AreaGrowth 2002-2009: 44.5% (5.4% p.y.)

ENERGY MATRIX: BRAZILIAN RENEWABLE MIX

BRAZILIAN ENERGY MIX

WORLD ENERGY MIX

Source: MME/BEN, 2006

Biomass; 29,7%

Coal; 6,4%

Natural gas; 9,3%

Hydraulic and Electricity; 15,0%

Oil and Oil Products; 38,4%

Uraniun; 1,2%

Biomass; 11,2%

Coal; 24,1%

Natural gas; 20,9%

Hydraulic and Electricity; 2,1%

Oil and Oil Products; 35,3%

Uraniun; 6,4%

Share of renewable energy in the total

primary energy: 45%

Share of renewable energy in the power

generation: 85%

Sources: Conab, IBGE, MAPA

Domestic Consumption and Exports (2009)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cotton

Corn

Soybeans

Broiler

Beef

Coffee

Sugar

Ethanol

Internal Consumption Exports

Sources: USDA, Ministry of Agriculture of Brazil

ExportsUS$ Billion

Sugar 1st 1st 124 8.378

Coffee 1st 1st 81 3.762

Orange Juice 1st 1st 75 1.619

Soybeans 2nd 2nd 46 11.413

Beef 2nd 1st 142 4.118

Tobacco 2nd 1st 100 2.992

Ethanol 2nd 1st 48 1.338

Broiler 3rd 1st 146 5.307

Corn 4th 3rd 49 1.259

Pork 4th 4th 81 1.225

Main Products Production ExportsNumber of

Markets

2009 Ranking: Brazilian Production and Exports 2009 Ranking: Brazilian Production and Exports

Brazil plays a leading role as global supplier for agribusiness products:• Exports for more than 200 markets;• Diversified product range to ensure food security.

EXPORTS OF BRAZILIAN AGRIBUSINESSEXPORTS OF BRAZILIAN AGRIBUSINESSMAIN PRODUCTS - 2009MAIN PRODUCTS - 2009

Source: AgroStat Brasil, data from SECEX/ MDIC

Total: US$ 64,8 billions

SOYBEAN &

PRODUCTS 26,6%

MEAT 18,2%SUGAR &

ETHANOL 15,0%

COFFEE6,6%

TABACCO &

PRODUCTS4,6%

ORANGE JUICE2,5%

CORN 1,9%

LEATHER1,8%

OTHERS22,7%

EXPORTS OF BRAZILIAN AGRIBUSINESSEXPORTS OF BRAZILIAN AGRIBUSINESSMAIN DESTINATIONS - 2009MAIN DESTINATIONS - 2009

Source: AgroStat Brasil, data from SECEX/ MDIC 2009

Total: US$ 64,8 billions

EU 2729,3%

CHINA13,8%USA

7,0%RUSSIA

4,3%

SOUTH KOREA2,0%

SAUDIT ARABIA

2,3%

VENEZUELA2,4%

JAPAO2,8%

HONG KONG2,6%

INDIA2,8%

OTHERS30,6%

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

70

81 83 85 87 89 91 93 95 97 99 01 03 05 07 09*

U S

$

b

i l

l i

o n

54.8

25.5

-29.3

Brazilian Trade Balance

1980 – 2009*

TOTAL

AGRIBUSINESS

OTHERS

Source: MAPA and SECEX/MDIC *Estimate: last 12 months (Dec 08 – Nov 09)

MAIN DRIVING-FORCES OF AGRIBUSINESS CHANGES

AVAILABLE LAND - CERRADOS

GOVERNMENT POLICIES: MACROECONOMIC AND AGRICULTURAL

TROPICAL AGRICULTURAL TECHNOLOGY

FARMERS: SMALL AND MIDDLE

SOME LESSONS FROM BRAZILIAN EXPERIENCE

AGRICULTURE AND AGRIBUSINESS IS A KEY SECTOR FOR DEVELOPMENT

GOOD POLICIES (MACRO AND AGRICULTURAL) ARE IMPORTANT WITH ADEQUATE DEVELOPMENT PROGRAMS

PEOPLE WITH EXPERIENCE - GOOD FARMERS

KNOWLEDGE AND AGRICULTURAL TECHNOLOGY.

Thank you !

contini@embrapa.br