Food security in Brazil: achievements and main challengesec.europa.eu/agriculture/sites/agriculture/files/expo-milano-2015/... · Food security in Brazil: achievements and main challenges

Joaquim Bento de Souza Ferreira Filho

Escola Superior de Agricultura “Luiz de Queiroz” -

ESALQ

University of São Paulo - USP

Food security in Brazil: achievements and

main challenges

Pre-conference on Global Food Security Challenges. Milano, 2015 1

Main questions

Pre-conference on Global Food Security Challenges. Milano,

2015 2

What are the main challenges for food security in

Brazil?

What are the current farm and trade policy

responses formulated to address these

challenges and indication of success/failure?

How do these regional approaches impact on

other regions/global food security and vice versa.

The Brazilian Food Security

System

Pre-conference on Global Food Security

Challenges. Milano, 2015 3

Brazil is a major food producer and exporter.

Lack of access to food in the country:

diagnosed by successive governments as a

problem of income deficiency, and not a problem of

food supply.

the FS system developed accordingly, as a system

focused in income increase and income transfers

programs.

focus on food access and not nutritional quality.

There are, however, important innovations

focused on family agriculture.

The food security system in

Brazil

Pre-conference on Global Food Security Challenges. Milano, 2015

1943: CFP. Origins of the food prices stabilization

system

1990´s:

started to change from price stabilization to food security

in the 90´s, after the opening of the Brazilian economy to

external trade.

Evolved gradually through institutional innovations.

2000´s:

new momentum, together with other important transfer

programs.

Zero Hunger Program – transformed in official program

in 2002

Food Acquisition Program (PAA) – created in 2003.

Food purchases from family producers. 4

Food security policies in Brazil: three

main pilars


1. Stimulus to food production

General rural credit policies;

PRONAF: credit program to small food producers at preferencial interest rates.

2. Food supply policies

CONAB. Mission: “Contribute to the regularity of food supply and guarantee of income to rural producers, participating of the formulation and execution of agricultural and food supply policies”

3. Bolsa Familia Program - Conditional income transfer program targeted to the poorest. Due to its magnitude and operational characteristics, the BFP is the main instrument for poverty alleviation and, by consequence, food security at work presently in Brazil.

5

Companhia Nacional de

Abastecimento - CONAB


Historically in charge of the Minimum Prices

Policy (PGPM) – agricultural prices stabilization in

Brazil.

After the opening of the Brazilian economy in the

nineties faced important institutional innovation:

Gave up price stabilization at national level

Focus on local intervention and particular groups.

Gradually changed it´s role toward food security.

Presently is the operational arm of the food security

system.

For that purpose, developed new policy

instruments in substitution to the old

“purchase/stock/sales” system. 6

New policy instruments with focus on: Facilitating product flows from isolated regions to markets

(local or exports), or to regions with product shortages.

Operated basically through financial instruments, like sales options. 7

Pre-conference on Global Food Security Challenges.

Milano, 2015

CONAB: New intervention

instruments (commercial agriculture)


The Federal Government Acquisition Program (Aquisições do Governo Federal – AGF)

The Options Contract (Contrato de Opções – CO)

The Product Flowing Premium (Premio de Escoamento de Produto – PEP)

Product Flowing Value (Valor de Escoamento de Produto – VEP).

Risk Premium for the Acquisition of Agricultural Product originating in a Private Sales Option Contract (PROP)

Equalizing Premium to Producers (PEPRO)

Sales in Public Auctions

Counter Sales (Vendas em Balcão)

These are sophisticated instruments that avoid stock creation, and gives incentives to direct sales from producers to consumers, and the use of financial instruments.

8

The PAA program (Food Purchases from

Familiar Agriculture): poverty in rural areas


Both a food supply and an income transfer program.

Acquisition of food from small producers through a simplified process of bids, at prices compatible to those practiced at regional markets level.

Products are used in food programs by:

social assistance institutions

households in conditions of food insecurity

programs of food bundles distributions.

There are five main modalities of purchase in PAA:

Direct Purchase from Family Agriculture (DP)

Local Direct Purchase with Simultaneous Donation (LDP)

Stock Formation (SF)

PAA Milk

Purchase and Simultaneous Donation (PSD)

9

PAA: total disbursement and number or

producers assisted

10 Pre-conference on Global Food Security Challenges.

Milano, 2015

0

50.000

100.000

150.000

200.000

250.000

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Nu

mb

er

of p

rod

uce

rs

Mill

ion

s o

f R

ea

is

Value Number of producers

Evolution of PAA modalities

11 Pre-conference on Global Food Security Challenges. Milano, 2015

0,34

0,18 0,16

0,46

0,16

0,06

0,16

0,41

0,63 0,67

0,41

0,72

0,80 0,67

0,25 0,20 0,17

0,13 0,12 0,13 0,16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012

Direct purchases Purchase and donation Stock formation

Bolsa Familia Program: about 0.5% of Brazilian

GDP (R$5.52 trillions) in 2014.


Milano, 2015

6.417

9.114

11.682

13.325

14.885

16.757

18.258

20.707

23.843

26.485 27.187

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

0

5.000

10.000

15.000

20.000

25.000

30.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Nu

mb

er

of h

ou

se

ho

lds (

mill

ion

s)

Mill

ion

of R

ea

is (

20

14

va

lue

s)

Bolsa Familia (value) Number of households

Rural credit: commercial and family

producers (PRONAF)


Milano, 2015

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

0,0

20.000,0

40.000,0

60.000,0

80.000,0

100.000,0

120.000,0

140.000,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Nu

mb

er

of P

RO

NA

F c

on

tra

cts

Mill

ion

s o

f R

ea

is

Total rural credit PRONAF Number of PRONAF contracts



Per capita income inequality Per capita income

Proportion of poor

Hoffmann (2015): 1/3 of

the fall in poverty due to

social programs

Food security in Brazil: 2004 x 2013.

Percentage of population.


Food security improved in the period, in spite of the food price increases (MDS, 2015) .

Higher in rural areas in Northeast Brazil.

15

2004 2009 2013

Food secure 65.1 69.83 77.42

Light insecurity 18.04 18.68 14.78

Moderate

insecurity

9.92 6.51 4.57

Severe insecurity 6.95 4.98 3.23

Challenges for the near future



Evolution of food and general price

index in Brazil.


Milano, 2015 17

Central government fiscal imbalance


Milano, 2015 18

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

2000.0

1

2000.0

5

2000.0

9

2001.0

1

2001.0

5

2001.0

9

2002.0

1

2002.0

5

2002.0

9

2003.0

1

2003.0

5

2003.0

9

2004.0

1

2004.0

5

2004.0

9

2005.0

1

2005.0

5

2005.0

9

2006.0

1

2006.0

5

2006.0

9

2007.0

1

2007.0

5

2007.0

9

2008.0

1

2008.0

5

2008.0

9

2009.0

1

2009.0

5

2009.0

9

2010.0

1

2010.0

5

2010.0

9

2011.0

1

2011.0

5

2011.0

9

2012.0

1

2012.0

5

2012.0

9

2013.0

1

2013.0

5

2013.0

9

2014.0

1

2014.0

5

2014.0

9

2015.0

1

2015.0

5

% o

f G

DP

Month/Year

Brazilian public sector net debt as a share of GDP

Challenges for the Food Security

System in Brazil


Milano, 2015 19

Complex and expensive system: only Bolsa

Familia represents 0.5% of GDP. Sizeable fiscal

effort.

Slugish GDP growth:

0.1% in 2014.

-2% in 2015?

No “rules of exit” for the conditional transfer

programs.

Low quality of the educational system.

The extent to which the Brazilian federal

government will be able to fund its social policy in

the coming years is the most important issue for

food security in Brazil presently.

Thank you.


Milano, 2015

[email protected]

20

Documents

Food security in Brazil: achievements and main challengesec.europa.eu/agriculture/sites/agriculture/files/expo-milano-2015/... · Food security in Brazil: achievements and main challenges