cooperative agribusiness development: what are we learning in latin america?

Cooperative Agribusiness Development: What are we learning in Latin America?

Fabio ChaddadUniversity of Missouri

Workshop

Enhancing Development through Cooperatives (EDC)

OCDC, Washington, DC – January 12-13, 2015

EDC

Fabio Chaddad

• B.Sc. Agronomy, University of São Paulo

• M.Sc. Agribusiness Management, University of São Paulo

• Ph.D. Agricultural Economics, University of Missouri

• Associate Professor, Agribusiness Management, University of Missouri– Research and Teaching

Experience in Cooperative Agribusiness Development

• Brazil

• Uruguay

• Argentina

Experience in Cooperative Agribusiness Development

• Brazil – Davi Costa (FEARP/USP)

• Uruguay – Mario Mondelli (OPYPA, CINVE)

• Argentina – Sebastian Senesi (UBA)

Cooperative Agribusiness Development in Brazil: Context

1975 1980 1990 2000 2010

Total value of production

(US$ million)35,883 45,839 61,052 89,187 140,127

Grain production

(million metric tons)39,400 50,871 58,280 83,030 149,255

Meat production

(million metric tons)3,394 5,385 8,414 14,510 24,622

Agricultural land

(1,000 ha)43,387 52,998 56,230 66,362 91,426

Agricultural labor

(1,000 persons)15,760 16,342 14,062 13,325 11,049

Animal capital stock

(1,000 head)122,199 150,459 184,002 207,220 254,819

Farm machinery capital

stock (number of tractors) 338,613 563,205 751,779 824,466 815,053

Fertilizer consumption

(1,000 metric tons)2,190 4,635 3,460 7,807 10,772

Main Agricultural Regions in Brazil

Southern region: smallholders, diversified agriculture, cooperatives

Southeastern region: export-oriented crops; vertically-integrated agribusinesses

Center-west: grains and fibers; commercial and corporate farms

Cooperative Agribusiness Development in Brazil: Context

Cooperative Agribusiness Development in Brazil: Context

Cooperative Agribusiness Development in Mato Grosso

Mato Grosso, Brazil

Corporate Farming in Brazil

Source: AGROCONSULT

Size(1,000 hectares)

2002 2012 2022

> 400 0 1 5

200-400 0 4 10

100-200 1 3 20

50-100 3 19 40

30-50 1 11 40

TOTAL 5 38 115

38 groups – 14 million tons – 3.5 million hectares

Cooperative Agribusiness Development in Mato Grosso

• Sponsors: OCB and SESCOOP/MT, Aprosoja and AMPA

• Objectives:

1. Cooperative development to increase producer income

– Existing cooperatives

– New cooperatives

2. Build a cooperative business network

Cooperative Agribusiness Development in Mato Grosso

• Workshops in 2011 and 2012– Convince producers and stakeholders that the

cooperative can be a viable business enterprise

• Summer 2012– 10 case studies of existing cooperatives

– 20 interviews with leaders of new groups

• Planning workshop in November 2012

Cooperative Agribusiness Development in Mato Grosso

• Since 2013: Cooperative Leaders Forum– 23 cooperatives – 3 million hectares

• 2014– Survey of 35 cooperatives– Course on Cooperative Governance– Study Trip in the U.S. (GICL)

• 2015– Continue with Cooperative Leaders Forum– Discussion groups focused on specific functions– Feasibility plan of a service cooperative

Lessons Learned

• Engagement of local sponsors

• Group of cooperative leaders committed to the project

• Meet frequently; constant engagement

• Research and local knowledge are vital

• Cooperative education is also vital

• Challenge to reach out more producers

• Resources

• Slow, but constant progress

Questions?

ChaddadF@missouri.edu