Sistemas Agroindustrias de Produção e Inovação no Brasil:

Grãos e Cana de Açúcar

Agribusiness Sector Systems of Production and Innovaton in Brazil:

Sugar and Grains

Maria da Graça Derengowski Fonseca

INSTITUTO DE ECONOMIA- UFRJ e INFOSUCRO-NUCA/IE-UFRJ

José Maria Jardim da Silveira

INSTITUTO DE ECONOMIA- NEA/ UNICAMP

Equipe de Pesquisa do INFOSUCRO

Charles Menard (economista senior e consultor Infosucro-NUCA/ IE- UFRJ)

Francisco José Peixoto Rosário (doutorando IE –UFRJ e professor da ESAMC-Alagoas)

Rômulo Neves Ely ( estagiário e mestrando COPPE-UFRJ)

UNIVERSIDADE FEDERAL DO RIO DE JANEIRO

GRAINS and SOY

5,7

2,6

4,54,0 4,7

5,95,0

2,32,22,21,5

1,8

3,3

4,03,8

3,9

3,1

1,0

3,0

5,0

1999 2000 2001 2002 2003 2004Anos

(%)

Soja na exportação da economia brasileira

Carne de frango na exportação da economia brasileira

Parcela de mercado das exportações agrícolas do Brasil na exportação agrícola mundial

Participation of Soy and Poultry on the Brazilian Exports ( 1999 a 2004)

FAO e MIDIC/ SECEX

Exports of Soy on Total Exports

Exports of Poultry on Total Exports

Brazilian Agribusiness Share of Market on Total Exports

years

Participation of Soy and Poultrys Exports on the Brazilian Agribusiness Exports (1999 a 2004)

73,3

9,2

76,571,6

69,2

58,3

41,5

19,820,518,117,017,1

11,56,3

8,0 8,0 8,26,30

20

40

60

80

1999 2000 2001 2002 2003 2004Anos

(%)

Soja na exportação brasileira de grãos

Soja na exportação agrícola do Brasil

Carne de frango na exportação agrícola do Brasil

Fonte: FAO e MIDIC/ SECEX

Exports of Soy on Exports of Grains

Exports of Soy on Agribusiness Exports

Exports of Poultry on Agribusiness Exports

years

Soy, Poultry, Beef -Participation on the Total Exports of Agribusiness Products in Brazil (1999 a 2004)

0%

5%

10%

15%

20%

25%

1999 2000 2001 2002 2003 2004

soja carne de frango carne bovina

Source FAO e MIDIC/ SECEX

soy poultry beef

The Importance of Grain Crops in Brazilian Agriculture, selected years

years

Total Area Grains Others

Hectares

AreaHectares

Share of total

harvested area (%)

AreaHectares

Share of total

harvested area (%)

1990 50,514,696 39,722,379 0.79 10,792,317 0.21

1995 50,761,717 39,694,779 0.78 11,081,938 0.22

2000 50,197,382 38,802,850 0.77 11,394,532 0.23

2005 62,639,616 49,822,380 0.80 12,817,236 0.21

Source: IBGE,2006

Grain Production and Harvested Area, 1990-2005

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Produçtion (106 hec)

Harvested area (106 hec)

Source: Agrianual (2006)

4,3

54,4

8,9

17,7

6,5

19,219,4

2,6

23,5

46,6

3,2

31,2

43,6

16,4

2,4

Norte Nordeste Sudeste Sul Centro Oeste

1990 1996 2002

60´s

70´s

80´s

90´s

50´s

RR

AM

AC

AP

RO

CE

RJ

ESSP

RNPB

PEAL

SE

PR

MS MG

RS

SC

GO

BAMT

PA

TO

MA

P

I

Crops by Main

Regions

Region Coffee Beans Corn Soybean Wheat

1995 North 1,25 0,46 1,56 1,81 -

Northeast 0,86 0,31 0,80 2,21 -

Southeast 0,99 0,78 2,85 2,11 1,99

South 0,55 0,89 3,03 2,21 1,55

Central-West 1,11 0,80 3,44 2,21 0,95

Brazil 0,99 0,54 2,49 2,20 1,54

1999 North 1,15 0,61 1,52 2,45 -

Northeast 1,00 0,41 1,02 2,11 -

Southeast 1,50 0,99 3,07 2,52 2,55

South 2,15 0,87 3,16 2,10 1,95

Central-West 1,37 1,27 3,67 2,71 1,59

Brazil 1,48 0,69 2,76 2,38 1,95

2003 North 0,69 0,70 1,67 2,41 -

Northeast 0,55 0,45 0,94 1,88 -

Southeast 1,14 1,20 3,82 2,71 2,07

South 0,96 1,10 3,47 2,28 1,43

Central-West 0,92 1,76 3,77 2,94 1,20

Brazil 1,05 0,81 3,01 2,57 1,43

Partial Productivity by Region and Selected Years (ton/hectares)

0

50

100

150

0

5000

10000

15000

20000

25000

90 92 94 96 98 00 02 04

GRAIN FERT

Brazil: Total Sales of Fertilizers and Grain Production (1990-2005)- mil ton

Source: MAPA (www.mapa.gov.br)

Brazilian States Farm

Production %Industrial

Production %

  (1000 ton year)   (ton/ per day)  

Paraná 9.386 17,6 32.115 23,4

Rio Grande do Sul 7.519 14,1 21.200 15,5

Mato Grosso 15.877 29,7 21.000 15,3

Goiás 6.985 13,1 18.500 13,2

São Paulo 1.569 2,9 15.600 11,4

Mato Grosso do Sul 4.376 8,2 8.295 6,1

Minas Gerais 2.483 4,6 6.600 4,8

Bahia 1.991 3,7 5.344 3,9

Santa Catarina 815 1,5 4.034 2,9

Piauí 545 1,0 2.360 1,7

Sub-total 51.545 1,0 135.048 1,0

Outros 1.869 0,0 2.050 0,0

Brasil 53.414 100,0 137.098 100,0Source:Abiove e Soybean Yearbook , 2006

Soy in Brazilian States – Farm and Industrial Capability in 2005

200.000

119.114112.367

100.836

55.978 55.316

0

50.000

100.000

150.000

200.000

91/

92

92/

93

93/

94

94/

95

95/

96

96/

97

97/

98

98/

99

99/

00

00/

01

01/

02

02/

03

03/

04

04/

05

05/

06

06/

07

07/

08

08/

09

09/

10

10/

11

11/

12

12/

13

13/

14

15/

16

Crop (tons) Exports (tons)

Forecast of Brazilian Deficit of Storage Capacity for Grain Exports

SYSTEM OF INNOVATIONS

• Competitiveness in the Production of grain seeds in Brazil is based on innovation and partnership among the SNDA/EMBRAPA and private companies

• The launch Property Laws (Lei de Proteção aos Cultivares-9456 Law) helped to develop efficiency in grain seeds crops maintaining the importance of the R&D Systems (EMBRAPA and SNDA)

Itens EMBRAPA SNPA

Programas Nacionais de Pesquisa 6 22

Projetos em Andamento 781 1.200

Pesquisadores 2.206 2.100

Número Total de empregados 8.619 8.100

Orçamento (US$ milhões, valores de 2005) 480 1.100

The EMBRAPA and SNPA Research System

SNPA/ EMBRAPA-Sistema Nacional de Pesquisa Agropécuária

National Research Programs

Number of Researchers

Total Employees

Budget US$ Million,2005

Number of Projects

Property Rights in seeds: R&D licencences in the SNPC (1996-2005)

0 50 100 150 200 250

Embrapa (219)

Outros 68 ( <11 cultivares)

MONSOY (81)

COODETEC (46)

COPERSUCAR (29)

FECOTRIGO (20)

UFV (18)

Naturalle Agromercantil (16)

Fundação Mato Grosso (14)

IAPAR (13)

Bretagne-P

Or melhramento

Em

pre

sa

s

Cultivares

Source Teixeira (2006)

companies

Seed and Crop Yelds- Participation of EMBRAPA on Value of Production and Economic Benefit (2002/2003)

ProdutoEmbrapa Seeds and Crops (%)

Value of Production EMBRAPA- 2002/2003crops(R$ Million) *

EMBRAPA Benefit(R$ Million) *

Cotton 53,3 1.753,8 924,5

Water rice 37,8 1.114,1 253,2

Dry Rice 43,2 1.441,0 405,1

Beans 53,6 2.268,2 1.641,1

Corn 8,0 840.0 425,9

Soy 39,0 9.932,7 997,0

Wheat 28,5 583,1 295,4

total n.s.a. 17.932,4 4.943,4

Fonte: Teixeira, 2006.

EMBRAPA and Innovation

• The importance of EMBRAPA e other governmental centers is related to their efficiency on biotechnology innovations

grain and other crops, with exception of corn

EMBRAPA: Funding Innovation Activities using Royalties e Partnership Contracts (2001/06)

Source: Teixeira, 2006

Licences (1.000 ton) Royalties (R$ 1.000) Number of Contracts

225 270 463 351 309 451

3117

5617

8991

1199313499

20532

1211651 1200 1500 1264

0

5000

10000

15000

20000

25000

2001 2002 2003 2004 2005 2006

Licenciamento de Cultivares (1.000 ton.) Arrecadação de royalties (R$ 1.000)

Número de Contratos

The Sugar and Alcohol SSPI

Sugar and Alcohol Institutional History in Brazil

1937: Instituto de Açúcar e Alcohol (IAA) was created to coordinate production defining rules and norms of production and comertialization to the private agents

1971: Planalsucar: R&D agency belonging to IAA

1970/1971 Centro de Tecnologia da Copersucar (CT-COPER) into COPERSUCAR

First Oil Crisis-1974/75 Proalcool is created in 1975 – national security perspective

Second Oil Crisis and Economic Debt Crisis in Brazil in the end of the 70´s/ beginning of the 80´s Impossibility to sustain governmental programs

End of Proálcool in 1990

Source: UNICA- Quoted from Delgado,V.,BNDES(2007)

Evolution of Sugar Cane and Ethanol Production and Facts

Source: Unica

FIGURA 17- Evolução das Exportações de Açúcar e Álcool no Brasil

Fonte: MDIC/ AliceWeb, 2007

Brazilian Exports of Sugar and Alcohol in US$ FOB

1.000 US$ FOB

Alcohol 1.000.000 US$ FOB

Sugar 1.000 US$ FOB

Source

Brazilian Exports of Sugar and Alcohol by Countries

BRICS

Brazilian Exports of Sugar by Destiny

BRICSBrics

Source www.ebio.org (06/2006)- Quoted from Delgado,BNDES(2007)

US,UE and Brazil Ethanol Production(2006)

US Brazil UE

Brazil and US: 70% of Production

Source:RFA (F.O.Licht)

Biggest Producers of Ethanol*

(10 countries:89% of global production)

Millions of GAL per year

* All degrees of ethanol

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

Álc

oo

l (m

il m

3)

-

5.000

10.000

15.000

20.000

25.000

30.000

Açú

car

(mil

hõ

es/t

on

s)

Álcool

Açúcar

Sugar and Alcohol Production in Production

(1970/1971-2003/2004)

Source : Infosucro

Potential Production for Sugar Cane Agriculture

Source:IG-UNICAMP- CGEE

Produtores de Açúcar e álcool ( Usinas e destilarias)

50

100

150

200

250

300

350

400

un

ida

de

s f

ab

ris

Usinas de açúcar

Produtores de álcool

Total = açúcar + álcool

BRAZIL-Sugar Cane Mills and Alcohol Production Plants

316

Source: IBGE/PIA

130

186

SUGAR AND ALCOHOL PLANTS

Sugar

Alcohol

EVOLUÇÃO DOS ÍNDICES DE CONCENTRAÇÃO

14%15%14%

16%16%15%18%

27%29%29%29%29%27%

30%

41%43%43%43%43%42%44%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2006/ 2005 2005/ 2004 2004/ 2003 2003/ 2002 2002/ 2001 2001/ 2000 2000/ 1999

Cr (4) Cr (10) Cr (20)

Source: Fonseca and Menard, INFOSUCRO IE-UFRJ

Concentration Rates of Sugar Cane Industrial Plant Producers Production in Brazil (2002/2006)

Consumo de açúcar, álcool e energia elétrica (cogeração), em TEP

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

1970 1975 1980 1985 1990 1995 2000 2005

ÁLCOOL AÇÚCAR COGERAÇÃO

Source of Data: BEN-EPE quoted by Ely,R.N. - INFOSUCRO

Sugar Cane Diversification Sugar,Alcohol and Eletricity Co-Generation consume in TEP*

*TEP: 10x10 cal (joules)9

Ethanol Production Costs (US$/galon)

Source:USDA

Brazil Sugar-cane

US corn

US Beet

US Cane

US White Sugar

UE Beet

Productivity GainsProductivity Gains Center-South RegionCenter-South Region

Source: UNICA

40,00

45,00

50,00

55,00

60,00

65,00

70,00

75,00

80,00

85,00

75 80 90 00 04

tca

ne

/he

cta

re

750,0

950,0

1.150,0

1.350,0

1.550,0

1.750,0

ga

l e

tha

no

l/h

ec

tare

tcane/hectare Gal ethanol/hectare

40,00

50,00

60,00

70,00

80,00

90,00

100,00

110,00

120,00

130,00

140,00

150,00

160,00

Tonelada de cana por hectare Rendimento industrial - Kg ART / Ton de cana

Productivity and Agribusiness Yields

Ton cane/hectare Industrial Yelds*

*kg ART/ton sugar cane

Source: INFOSUCRO

Vendas Autoveículos Nacionais por Tipo de Combustível - Unidade

0

200

400

600

800

1000

1200

1400

1600

1800

1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

GASOLINA ÁLCOOL FLEX

SELLING CARS IN BRAZIL ACCORDIND THE TYPE OF FUELS

Innovation in Sugar Cane Production

Sugarcane crops in Brazil/Innovation

Protection from pests and diseases is a strength of Brazil’s production: it is based on a continued supply of resistant sugar-cane varieties and not much on phytosanitary barriers ( natural traps)

The sugar-cane genetic improvement programs in Brazil released 51 varieties over the past ten years; the most used variety occupies just 12.6 percent of the area.

Brazil has (non-commercial) transgenic varieties since the 1990’s.

Next Step Innovations

Next 10 – 20 years much more efficient use of sugar cane biomass will increase significantly the range of products and their value

– Some technologies in advanced development stage (worldwide) are key for this transformation: the hydrolysis of biomass (bagasse and trash) as well as many different fermentation technologies; and the biomass gasification, leading to power or fuel synthesis.

– Sugar cane appears an ideal feedstock for future “bio-refineries”, for its relatively low cost, large availability and an interesting mix of 1/3 sucrose & 2/3 pre-processed ligno-cellulosic material.

R&D Institutional Structure

PRIVATE• CTC- Centro de Tecnologia Canavieiro (old CT-COP

from Coopersucar created in 1970) incremental innovations and development of new varieties of sugar cane (genetic improvements)

GOVERNMENTAL• APTA: Agência Paulista de Tecnologia do Agro-negócio

da Secretaria de Agricultura de SÃO PAULO

• Instituto Agronômico de Campinas, IB ans IEA (SP)

• Planalsucar (Araras-SP) belongs now to the Universidade Federal de São Carlos

• EMBRAPA

UNIVERSITIES

- UNICAMP- CBMEG - SÃO CARLOS- Departamento de

Biologia Vegetal Programa de Melhoramento Genético da Cana e Departamento de Recursos Naturais e Proteção Ambiental

- FEALQ- Piracicaba - Universidade Federal Rural de Alagoas- Centro de CARPINA em Pernambuco

                                                                                                               

                      

       

                 

 

CTC 6Destaca-se pela alta produtividade, com alta resistência às principais doenças sendo recomendada para colheita do meio para o final da safra, em ambientes de boa a média produção. Apresenta fibra baixa, pouco florescimento

                  

CTC 7Destaca-se pela precocidade, com alto teor de sacarose e resistência às principais doenças, sendo recomendada para colheita no início da safra, em ambientes de alta a média produção. Apresenta fibra média, pouco florescimento

                  

CTC 8Destaca-se pela ótima brotação de soqueira e porte ereto, sendo recomendada para colheita do meio para o final da safra, em ambientes de média produção. Apresenta fibra alta, pouco florescimento e pouca isoporização.

                  

CTC 9Destaca-se pelo alto teor de sacarose e precocidade, sendo recomendada para colheita no início da safra, em ambientes de média a baixa produção. Apresenta fibra média, pouco florescimento e pouca isoporização.

CTC Second Generation Varieties

Xylella strainsLeifsoniaLeptospiraEucalyptusHuman pathogensBovineCoffee

X. citriX. campestris

Fonte: Fapesp/ Embrapa

Biotecnology and Sucar CaneSugar Cane Project

Other Projects

UNICAMP- CBMEG

Genetics and genomics to develop new sugar cane varities

São Carlos

Objetivo: bio-informátics projects

UNICAMP

Genetic and genomics innovations related to the development of agribusiness products: soya, citrus,grapes, eucaliptus and sugar-cane UNICAMP

start-ups start-ups

Thank you!

Source: MDIC- AliceWeb-INFOSUCRO (2007)

Brazilian Exports of Sugar by Destiny

BRICS

Other

Africa

East of Asia

US

West of Asia

UE

UE

US

BRICS

Japan

Africa

West of Asia

Central America

Other

T

Brazilian Exports of Alcohol by Destiny *

Source: MDIC- AliceWeb-INFOSUCRO (2007)