Brazilian Agricultural Perspective on Global Context · Brazilian Agricultural Perspective on Global Context ABARES – Outlook 2014 Conference Canberra ON Australia, March, 4th and

Brazilian Agricultural Perspective

on Global Context

ABARES – Outlook 2014 Conference Canberra ON Australia, March, 4th and 5th / 2014

Session: Global focus Mariele Pickler

Market Development Agronomist– Bayer CropScience Brazil

Content

Brazilian Perspective on Global Agricultural Context - ABARES Outook 2014 Conference 2014

International trade

Grain Production

1

2

3

4

5

6

Comparative Advantages

LCA Program

Sustainable Soybean Production

Challenges

Conclusions

Energy safety

7

Introduction

The Importance of Agribusiness in Brazil


Sources: CEPEA/USP, CNA, IPEA, MAPA e MDIC. Elaboration: Fiesp-Deagro.

22,15% (US$ 549 bi)

30% 39% (US$ 94,6 bi)

Employment (2012) Exports (2012)

11,8% 28,8% 28,5% 30,9%

Inputs Ag.

livestock Agro-

industry

Distribution

GDP Distribution within the Agribusiness System

GDP (2011) Other Sectors

Other Sectors Other Sectors

Brazilian International Trade Performance Overview

(U.S. $ billion)


Source: MAPA e MDIC. Note: * Aug/12 to Jul/13.

Agribusiness Trade Balance Brazilian Trade Balance

As exportações do agronegócio foram responsáveis por 42% do total das

vendas externas brasileiras no período de ago./12 a jul./13.

Exportations

Importations

Balance

Agribusiness

Other sectors

Total balance Brazil

Agribusiness exports were responsible for 42% of total Brazilian foreign

trade in the period August 2012 to July 2013

Commodity: export strength

Brazil in a Global context


World Brazil

Annual growth rate Brazilian Market Share

Soybean

Corn

Sugar

SOURCE: Outlook Brazil 2022 and FAPRI

Meat: export strength

Brazil in a Global context


World Brazil

Beef cattle

Poultry

Pork meat

Annual growth rate Brazilian Market Share

SOURCE: Outlook Brazil 2022 and FAPRI

Brazilian Food Market Ranking


Export

ation

Pro

duction

Brazilian grain production (Variation among crop season 1990/91 to 2012/13)


37,838,4

35,539,0

38,436,8

38,435,0

36,737,7

38,339,6

43,947,4

48,447,3

46,247,4

47,7 47,349,955,2

57,868,2

68,376,0

81,2

73,8

78,9

76,6

82,482,8

96,798,2

123,1

119,3113,4

120,8

131,7144,1

135,1149,2

162,9195,5

AREA (MM Ha) PRODUCTION (MM Ton)

Source: Conab (Jul/2013). Note: * 10th survey

Production: +238%

Area: +46%

Successive gains in productivity enabled the saving of MMha 68.

Yield gain: + 232% /ha

Technology helping to yield increase


1. Biotechnology (GMO)

2. Nanotechnologies

3. Animal breeding

4. Agro-energy and Bio Refinery

5. Plan LCA (Low Carbon Agriculture)

6. Integrating Agriculture-Livestock-Forestry

7. No Tillage system and Precision Farming

8. Inputs for agriculture & livestock

9. Technology diffusion

Grain Production 2012/2013 (MM Ton)


Product 2010/11 2011/12 2012/13 2013/14*

Soybean 68.688,2 66.383,0 81.479,8 89.720,5

Corn 55.968,0 72.979,8 81.007,2 79.626,9

Rice 11.660,9 11.599,5 11.746,6 12.029,3

Wheat 5.026,2 5.788,6 4.379,5 4.769,5

Dry bean 3.322,5 2.918,5 2.832,2 3.247,6

Cotton 2.860,1 3.018,6 2.101,5 2.554,4

Sorghum 1.624,2 2.221,9 1.981,5 2.296,3

Others 54,8 1.262,2 1.289,6 1.255,2

Total 149.204,9 166.172,1 186.817,9 195.499,7

*Forecast

Source: Conab

Soybean + Corn contributes with 87% of overall grain production

87 %

Grain production allocation


Competitive Advantages


Land availability

Technology

Manpower

‘

Brazil: Land use


Sources: IBGE (Censo Agropecuário e Pesquisa Agrícola Municipal) and Conab (Sugarcane harvest survey) Prepared by: GVAgro.

Whole year crop scheme


Rainy period from end of September until beginning April;

Winter cereals, only in southern states;

Sugar cane harvest period is from April to October

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Irrigated Cucurbits (melon and water melon)

Coffee trees

Tropical Fruits (Citrus, papaya, pine apple...)

Irrigated Cotton

Millet (cover crop)

Dry beans

Sorghum

Corn Corn

Soybean Soybean

Cotton Cotton

Rainny period

Irrigated Corn (Commercial or Seed production)

Irrigated dry bean

Dry beans

Sugar cane

Waterlogged & upland rice

Dry period Rainny period

Wheat and barley

Waterlogged & upland rice

How Sustainable Brazil is?

Energetic Matrix


Global figure

OECD point of view

Not- Renewable

Renewable

87%

13%

Not- Renewable

Renewable

93%

7% Source: MTE (BEN 2012)..

Renewable 44,1% Not -

Renewable 55,9%

Sugar cane

15,7% Hydro

14,7%

Petroleum 38,6%

Renewable

Not-renewable

Brazil

Others

13,2% Others 18,4

43 %

57 %


Sugar cane crushed bagasse

Steam turbine

Generator Electricity

Sugar

Sugar cane harvest Sugar mill (industrial plant)

Sugar cane energy cycle

Surplus is sold

to the city

On average, ethanol powered

car consumes 30% more than

gasoline powered cars

Flex fuel cars

LCA program: Low Carbon Agriculture


Aims to spread a new sustainable agriculture that will reduce global warming

and carbon dioxide released into the atmosphere. The Low Carbon Agriculture

Program encourages six initiatives with goals by 2020.

LCA program: Six Initiatives


The goal is to expand the current 26 million hectares to 33 million hectares. This increase will allow emission reduction from 20 million to 16 million tons of CO2 eq.

No tillage system

The target is to restore 15 million hectares and reduce between 83 and104 million tones of CO2 eq.

Recovering Degraded Lands

The objective is to increase system usage by 4 million hectares and avoid emissions from 18 million to 22 million tons of CO2 eq.

Integrating Agriculture-Livestock-Forestry

Source: Brazilian Ministry of Agriculture Livestock and Food Supply

The objective is to encourage the use of this technique at 5.5 million hectares, resulting in decreased emission of 10 million tons of CO2 eq.

Biological N fixation

The goal is to expand in 3 million hectare of planted forests, reaching 9 million hectares by 2020.

Forest Plantation

The goal is to treat 4.4 million m³ of waste from swine raise and other livestock activities, preventing emission of 6.9 million tons of CO2 eq.

Livestock Waste Treatment

Sustainable Soybean Production


Program of economic, social and environmental managament of Brazilian Soybean

More informations: www.aprosoja.com.br

Their mission:

Promote and foster continuous improvement;

Work on Sustainable themes: economic, social and environmental;

Support, guild and coach the Brazilian Growers;

Focus on entire production chain;

Action in partnership with farmers, public sector and society.

Sponsors:

http://www.abiove.org.br/

http://www.aprosoja.com.br/

http://www.aprosoja.com.br/

Challenges for the future


1. Poor Infrastructure and Logistics:

Storage, Highways, Railways and Ports

2. Income: Rural Credit and Insurance:

Minimum prices

3. Trade Policy: Regional and Bilateral Agreements

4. Technology: Foster Research, Plant and animal health Defense; Innovation to increase

productivity

5. Institutional matters: Forest Code, Labor Issues, Taxes, Land for Foreigners

6. Internal organization

7. Communication

Conclusions


Brazil is becoming a major supplier of food, feed, fiber and renewable energy in

the world;

Brazil has the full potential for high level agriculture: availability of land and

water, labor and climate to grow during almost the whole year;

Farmers are very efficient in producing;

…but still need a lot of investment in infrastructure and agriculture policy that

favors competitiveness

Thank you for your attention !!

Website: www.bayercrospcience.com.br

E-mail: [email protected]


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Brazilian Agricultural Perspective on Global Context · Brazilian Agricultural Perspective on Global Context ABARES – Outlook 2014 Conference Canberra ON Australia, March, 4th and