AN OVERVIEW ON AGRICULTUREAN OVERVIEW ON AGRICULTUREAN OVERVIEW ON AGRICULTUREAN OVERVIEW ON AGRICULTUREAND AGRIBUSINESS IN BRAZILAND AGRIBUSINESS IN BRAZILAND AGRIBUSINESS IN BRAZILAND AGRIBUSINESS IN BRAZIL

Rui Samarcos LoraC di tCoordinator

Office for International RelationsMinistry of Agriculture, Livestock and Food Supply

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SummarySummary

11 –– Brazilian Agriculture in FiguresBrazilian Agriculture in Figures11 Brazilian Agriculture in FiguresBrazilian Agriculture in Figures22 –– Government and Agriculture in BrazilGovernment and Agriculture in Brazil33 Main prod cts prod ction and prod cti itMain prod cts prod ction and prod cti it33 -- Main products, production and productivityMain products, production and productivity44 -- Brazilian Agricultural Trade Brazilian Agricultural Trade 55 –– Trends and perspectivesTrends and perspectives66 -- New challenges: future of agriculture in BrazilNew challenges: future of agriculture in Brazilg gg g

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Brazilian Agriculture inBrazilian Agriculture inBrazilian Agriculture inBrazilian Agriculture inFiguresFiguresFiguresFigures

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Brazil in Numbers

Area:8.514.876,5 km²

13% fresh water in the world388mi ha of arable land90mi há are not in use

Agribusiness:33% GDP33% GDP

42% Exports37% Jobs

17 7mi rural workers17.7mi rural workers

Borders:23 086 km total23.086 km total

7.367km - ocean15.719km - landWith 10 countriesWith 10 countries

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BRAZILIAN BIOMESBRAZILIAN BRAZILIAN BIOMESBRAZILIANTERRITORY

Amazon Biome 420 M ha

C 60 M hCrops 60 M ha

Pastures 160 M haPastures 160 M ha

Planted Forests 6,8 M ha

Brazil 851 M haSources: Ministry of Agriculture; Ministry of Environment - 2006

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LAND DISTRIBUTIONLAND�DISTRIBUTIONFarms (thousand) Area (1000 ha)( ) ( )

Total Brazil 5.175,5 329.941,4< 100 hectares 86,0% 21,4%

100-1000 hectares 8,2% 34,2%

> 1000 hectares 0,9% 44,4%

South 1.006,2 41.526,2< 100 hectares 91,6% 37,3%

100-1000 hectares 6,0% 39,9%

> 1000 hectares 0,4% 22,7%

Center West 317,5 103.797,3< 100 hectares 68,3% 6,3%

100 1000 h t 24 2% 24 0%100-1000 hectares 24,2% 24,0%

> 1000 hectares 6,4% 69,6%

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Agricultural production startedAgricultural production startedprimarily in the southern region and later on expanded to other areas towards the middle-west.

High levels of productivity as a result of investments in tropical technology allow coexistence of

expansion of food and energyexpansion of food and energyproduction along with

environment protection.

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Agribusiness Expansion:Agribusiness Expansion:Agribusiness Expansion:Agribusiness Expansion:International Partnerships (Japanese Case)International Partnerships (Japanese Case)

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Agribusiness Expansion:Agribusiness Expansion:Agribusiness Expansion:Agribusiness Expansion:Brazilian Agricultural Research Corporation (Embrapa)Brazilian Agricultural Research Corporation (Embrapa)

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Government and AgricultureGovernment and Agricultureggin Brazilin Brazil

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Ministry of Agriculture, Ministry of Agriculture, Li t k d F d S lLi t k d F d S lLivestock and Food SupplyLivestock and Food Supply

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Ministry of Agriculture, Livestock and Food Supply

MINISTER

y g , pp y

DEPUTYMINISTER

TECHNICAL ASSISTANCESTRATEGIC

MANEGEMENT OFFICE

TECHNICAL ASSISTANCEFOR

LEGAL ADVICE

CONABCEPLACSECRETARIAT OF

AGRICULTURE EMBRAPASECRETARIAT OF PRODUCTION AND

SECRETARIAT OF AGRICULTURAL

DEVELOPMENT AND

SECRETARIAT OFINTERNATIONAL

SECRETARIAT OFANIMAL HEALTH, PLANT

PROTECTION AND POLICYAGRIENERGYDEVELOPMENT ANDCOOPERATIVISMRELATIONS PROTECTION AND

INSPECTION

INMETLANAGROSFA

REGIONALOFFICES

CEASAMG/SP

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Main Products ProductionMain Products ProductionMain Products, ProductionMain Products, Productionand Productivityand Productivityand Productivityand Productivity

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MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION (March 2012)GROSS VALUE OF PRODUCTION (March 2012)

$Source: CNA

TOTAL�=�US$�195,9�billion

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Harvesting soybean Corn field

GRAINSGRAINS

Harvesting cotton Soybean field- 16 -

GrainsGrainsProduction

If Brazil had maintained the same +774%

technology used in 1960, it would be necessary to occupy more than 145 million hectares of land

Inhabitants(million) 70 190,7

(million tons) 17,2

190,7

150,8

(million hectares) 22

,

47,5

(kilos per hectare) 783 3.173

1 = 10 million inhabitants 1 = 10 million tons 1 = 300 kilos per hectare

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GRAINS – PRODUCTION AND AREA1991 to 2012

Production�

Growth:�136%�=��4,4%�/�yearyear

Harvested�AreaGrowth:�30%�=�1,4%�/�year

Source:�CONAB

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MAIN GRAINSMAIN GRAINS(2011/12)

Source: CONAB

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CORN PRODUCION – DOUBLE CROPPING(1991/92 to 2011/12)

Source:�CONAB

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Sowing corn No tillage ( i t ll f i dl )g

(2nd harvest) (environmentally friendly)

Harvestingsoybeanssoybeans

Scale mechanizationScale, mechanizationTwo crops in the same year without irrigation

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MEATMEAT

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LivestockIf Brazil had maintained the same technology used in

+251%LivestockCattle

1960, it would have todirect more than 259 million hectares of land to pasture

+39%

pasture

Herd(million heads of cattle) 58 204

Pasture area(million hectares)

122,3 170

Productivity(heads per hectare)

0,47 1,2

1 = 10 million inhabitants 1 = 10 million inhabitants 1 = 300 kilos per hectare

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MEAT PRODUCTION

Broiler:�+�273%�(94�2011)

(1994 to 2011)

2011)

Beef: + 74 % (94�Beef:�+�74�%�(94�2011)

Pork: + 148% (94Pork: +�148%�(94�2011)

Sources: Beef - Fórum Nacional Permanente da Pecuária de Corte da CNA, Chicken – Ubabef, Pork - Abipecs

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SUGARCANESUGARCANE

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SUGAR CANE, SUGAR AND ETHANOL,

Sugar:�+�388�%

Ethanol:�+�97�%%

Harvested�Area:�+�95�%

Source: Ministry of Agriculture – Anuário Estatístico da Agroenergia 2010

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ENERGY MATRIX: BRAZILIAN RENEWABLE MIX BRAZILIAN�ENERGY�MIX�(2009)

WORLD ENERGY MIX (2007)WORLD�ENERGY�MIX�(2007)

Share�of�renewable�

energy�in�the�total�

S MME/BEN 2010

gy

primary�energy:�47%

Source: MME/BEN, 2010

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Brazilian Agricultural TradeBrazilian Agricultural TradeBrazilian Agricultural TradeBrazilian Agricultural Trade

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Foreign TradeUS$76

Foreign Trade

Exporter for212 DESTINATIONS212 DESTINATIONS

1960 BRAZIL1960 BRAZILImporter ofFOOD 2010 BRAZILFOOD 2010 BRAZIL

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2011�RANKING:�BRAZILIAN�PRODUCTION�AND�EXPORTS��

P d t P d ti E tNo.�of�

Exports����������(US$Product Production Exports

Markets(US$�Billion)

Sugar 1 1 125 14 9Sugar 1 1 125 14,9

Coffee 1 1 134 8,7

Orange�Juice 1 1 68 2,4Soybean�(Grains) 2 1 43 16,3( )Beef 2 2 140 5,3

Poultry 2 1 145 7,5Poultry 2 1 145 7,5

Maize 3 4 48 2,6

P k 4 3 74 1 4Pork 4 3 74 1,4

Sources: USDA and Ministry of Agriculture,Livestock and Food Supply

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BRAZILIAN AGRIBUSINESS TRADE BALANCE1990 – 2012

Source:�MAPA�and�SECEX/MDIC

*�June�2011�– May�2012

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BRAZILIAN TRADE BALANCE1990 – 20111990 2011

Source:�MAPA�and�SECEX/MDIC- 32 -

AGRICULTURAL EXPORTSMAIN NET EXPORTERS 2009MAIN NET EXPORTERS – 2009

Source: TradeMap / CCIElaboration: Ministry of Agriculture

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BRAZILIAN AGRIBUSINESS EXPORTSMAIN PRODUCTS – 2010MAIN PRODUCTS 2010

Total: US$ 76,4

Source: Agrostat, Ministry of Agriculture

billion

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BRAZILIAN AGRIBUSINESS EXPORTSMAIN DESTINATIONS – 2010MAIN DESTINATIONS 2010

Total: US$ 76 4Total: US$ 76,4billion

Source: Agrostat, Ministry of Agriculture- 35 -

MARKET SHAREMAIN AGRICULTURAL PRODUCTS – 2009MAIN AGRICULTURAL PRODUCTS 2009

36

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DOMESTIC CONSUMPTION AND EXPORTS(2010)(2010)

Sources:�Conab,�Ubabef,�Ministério�da�

Agricultura,�Cecafé,�CNA- 37 -

Trends and PerspectivesTrends and PerspectivesTrends and PerspectivesTrends and Perspectives

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Production ExpansionProduction Expansion

“MATOPIBA”“MATOPIBA”16.7(2020/21)

Production and Exports

cotton beef soybeancotton,�beef,�soybean,poultry,�cellulose�and�paper

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Production of Grains and MeatProduction of Grains and MeatProjections of the Ministry of Agriculture

62.6 318.299.3% 81.5%

26.8% 23%31.2 175.8

24.6 135.4

beef,pork,�

poultry

rice,�beans,soybean,�corn,

wheat

Million tons Million tons

poultry wheat

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GLOBAL TRENDSGLOBAL TRENDSWorld�population�growth�with�increasing�per�capita�

i

GLOBAL TRENDSGLOBAL TRENDS

incomeIncreasing�demand�for�agricultural�products�(food,�fuel,�

f d fib )feed,�fiber...)

Shifts�in�consumption�habits�(more�meat)

Shortage of new areas for agricultural productionShortage�of�new�areas�for�agricultural�production

Challenges to food securityContinuous�need�of�food�production�increase

Challenges�to�food�security

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AGRICULTURAL�PRODUCTION�INDEX:�1992�2019FAO�OCDE�Projectionsj

“Brazil�is�the�fastest�growing�agriculturalt b f i b 40% t 2019sector�by�far,�growing�by�over�40%�to�2019,�

when�compared�to�the�2007�09�base�period.”�(OECD�FAO�Agricultural�Outlook�2010�2019)

Source: OECD and FAO Secretariats (OECD-FAO Agricultural Outlook 2010)- 42 -

PRICES WILL REMAIN HIGH

Price trends in nominal terms of agricultural commodities to 2020

Source: OECD and FAO Secretariats (OECD-FAO Agricultural Outlook 2011)

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Growth in per capita consumption of food products (2008-10 to 2020)CONSUMPTION IS INCREASING FAST

Growth in per capita consumption of food products (2008 10 to 2020)Percent change 2020/2008-10

Source: OECD and FAO Secretariats (OECD-FAO Agricultural Outlook 2011)

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BRAZILIAN AGRIBUSINESSBRAZILIAN AGRIBUSINESSBRAZILIAN AGRIBUSINESSBRAZILIAN AGRIBUSINESSCOMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES

� Strong, thriving economy & Institutional frameworkg g y

� Leadership in tropical technology

� Natural resources abundance (land, water, solar energy)

� Farming vocation & Business entrepreneurship

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EVOLUTION OF FOREIGN DIRECT INVESTMENTS IN BRAZILIN BRAZIL2001-2009

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Producer Support Estimate by country (1995 97 and 2008 10)FARMING VOCATION & BUSINESS ENTREPRENEURSHIP

Producer Support Estimate by country (1995-97 and 2008-10)Per cent of gross farm receipts

Brazil’s competitiveness doesn’t rely on subsidies.y

Source: Organization for Economic Cooperation and Development , PSE/CSE database, 2011.

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New challenges: New challenges: f t f i lt i B ilf t f i lt i B ilfuture of agriculture in Brazilfuture of agriculture in Brazil

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Agricultural AttachéAgricultural AttachéAgricultural AttachéAgricultural Attaché

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International CooperationInternational CooperationInternational CooperationInternational Cooperation

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Low Carbon Emission Programme (ABC)

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Biofuels

52- 52 -

Infrastructure WorksInfrastructure Worksast uctu e o sast uctu e o sInvestment

$Ports (1-13): US$ 722 millionWaterways (1-8): US$ 666 millionTocantins Waterway (A-F): US$ 1.22 billionTotal: US$ 2.61 billion

Source: Macrologística (2010)g ( )

Modernization of the Port of Porto Velho (RO)Enhancement of Madeira River Waterway (AM / RO)

12

Waterways

TOCANTINS RIVER

345678

Building of Mirituba River Port (PA)Dredging and rock removal in rivers Juruena and Arinos (MT)Building of sluice in Cachoeira Meia Carga (MT)Signaling in rivers Juruena and Arinos (MT)Building of sluice in Boa Esperança (Parnaíba)Signaling, dredging and rock removal in river São Francisco

ABCDEF

Dredging of canal in Quiriri (PA) Dredging from Marabá to Vila do Conde (PA)Rock removal in Pedral do Lorenço (PA) Dredging and rock removal from Marabá (PA) to Imperatriz (MA)Building of sluice in Estreito (TO)Building of sluice in Lajeado (TO)

23456

Building of port in Outeiro (PA)Terminal TERFRON ( Büngue) (PA)Building of area for general cargo in Itaqui (MA) Building of Berth 100 in the Port of Itaqui (MA)Dredging of Berths 100-103 and building of backport areas in Berths 100 and 101 in the Port of Itaqui (MA)Recovery of Berths 100-102 in Itaqui (MA)

f ( )

1

PortsNavigable Waterway

Non-Navigable Waterway

Existing Road78910

Enlargement of grains terminal in Itaqui (MA)Building of fertilizers terminal in Itaqui (MA)Modernization of Santana Port (AM)Enlargement of multiple use terminal in the Port of Santarém (PA)Building of Pier 200 in the Port of Santarém (PA)Plant bulk terminal in Santarém (PA)Multiple use terminal 2 in Santarém (PA)13

1112

g

Planned / In Work Road

Existing Railway

Planned / In Work Railway

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C t C iC t C iCost ComparisonCost ComparisonHarvest Transportation to Ports

7883 85

80

90US$/US$/TonTon

7883 85

80

90US$/US$/TonTon

204%204%204%

51

5964

60

70

51

5964

60

70204%204%204%

28

34

43

30

40

50

28

34

43

30

40

50

53.3%20 20 20

15 15 16 17 17 18 1823 23

201716151414

10

20

30

20 20 2015 15 16 17 17 18 18

23 2320

1716151414

10

20

30

0

2003 2004 2005 2006 2007 2008 2009 2010 2011

Argentina USA Brasil

(*)(*)0

2003 2004 2005 2006 2007 2008 2009 2010 2011

Argentina USA Brazil

(*)(*)42.9%

Source:Anec (2011)

g

US$ 20US$ 20 US$ 23US$ 23 US$ 85US$ 85g

US$ 20US$ 20 US$ 23US$ 23 US$ 85US$ 85

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SPECIFIC AMAZON CONCERNSPECIFIC AMAZON CONCERN

In Brazil, 80% of a farm in

SPECIFIC AMAZON CONCERNSPECIFIC AMAZON CONCERN

,the Amazon must remain forested; in other areas,

th i t i lthe requirement is lower, falling to 20%.

None of the world's large farm producers thatfarm producers that

compete with Brazil -USA, Europe, China,, p , ,

Argentina and Australia -obliges its producers to

f tpreserve any forest.

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C l iC l iConclusion:Conclusion:“A i lt l R l ti B il“A i lt l R l ti B il“Agricultural Relations Brazil“Agricultural Relations Brazil

and Japan”and Japan”and Japanand Japan

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rui.samarcos@agricultura.gov.brrui.samarcos@agricultura.gov.brsri@agricultura.gov.br

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