brazilian agriculture: recent development
DESCRIPTION
EMBRAPATRANSCRIPT
BRAZILIAN AGRICULTURE -
RECENT DEVELOPMENT
Brazilian agriculture: before 1970's
Low Ag production and low yields Production concentrated in South/Southeast Food supply crisis Rural poverty Lack of specific knowledge on Tropical Agriculture Institutional void (ag research, education, markets, media
and governmental agencies, etc.)
THE TASK: TO MOVE FROM TRADITIONAL AGRICULTURE TO
AGRICULTURE BASED ON SCIENCE & TECHNOLOGY.
Source: MAPA / Biomes MMA 2006 / ABRAF
BRAZILIAN TERRITORY
Amazon Biomes 420 M ha
Crops 77 M ha
Planted Forests 6 M ha
Brazil 851 M ha
BRAZILIAN BIOMES
Source: Conab / MAPA and IBGE (pastures – 2006)
MAIN CROPS - Area2007/2008 Harvest
Most of recent expansion
in agricultural area is on
pasture land
Source: CNA
MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION (June 2009)
Harvesting soybean
Harvesting cotton
Corn field
Soybean field
GRAINS AND FIBERS
GRAINS - Production and Area(1991 to 2010*)
Harvested AreaGrowth: 27% = 1.3% / year
Production
Growth: 145% = 4.8% / year
Source: CONAB.
*Estimate: October/ 2009
05/21/09
Viabilization of agriculture in the Cerrado
1960
1975
2005
Evolution and expansion of soybean in Brazil
Harvesting soybeans
Sowing corn(2nd harvest)
Scale, mechanization
Two crops in the same year without irrigation
No tillage (environmentally friendly)
MEAT Large scale, state of the art production
Biggest exporter of beef and poultry
Meat Production1994 - 2008
Meat Production1994 - 2008
Source: ABIEC, ABEF, UBA and ABIPECS
9,0119,2008,950
5,200
10,88010,305
9,530
3,411
3,0293,026
2,870
1,330
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Th
ou
san
d M
etri
c T
on
s
Beef: +73 % (94-08)
Pork: + 128% (94-08)
Broiler: + 212% (94-08)
MILK - increase on production led to self
sufficiency and exports
Milk Production1990 - 2008
Milk Production1990 - 2008
Source: ABIEC, ABEFand, UBA
14.000
16.000
18.000
20.000
22.000
24.000
26.000
28.000
30.000
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Th
ou
san
d M
etri
c T
on
s
+ 99 %
SUGAR CANE sustainable energy production
0
5
10
15
20
25
30
35
40
Pro
du
cti
on
0
2
4
6
8
10
12
14
16
18
20
Ha
rve
ste
d a
rea
(millio
ns
ha
)
Harvested area Sugar (million tons) Ethanol (million m³)
SUGAR and ETHANOL: Production and Area
* Estimate (2nd Sugar Cane Harvest Survey: September/ 09)
SUGARGrowth 2002-2009: 93.2% (8.6% p.y.)
ETHANOLGrowth 2002-2009: 142.4% (11.7% p.y.)
Sources: SPAE / MAPA and CONAB / MAPA
Harvested AreaGrowth 2002-2009: 44.5% (5.4% p.y.)
ENERGY MATRIX: BRAZILIAN RENEWABLE MIX
BRAZILIAN ENERGY MIX
WORLD ENERGY MIX
Source: MME/BEN, 2006
Biomass; 29,7%
Coal; 6,4%
Natural gas; 9,3%
Hydraulic and Electricity; 15,0%
Oil and Oil Products; 38,4%
Uraniun; 1,2%
Biomass; 11,2%
Coal; 24,1%
Natural gas; 20,9%
Hydraulic and Electricity; 2,1%
Oil and Oil Products; 35,3%
Uraniun; 6,4%
Share of renewable energy in the total
primary energy: 45%
Share of renewable energy in the power
generation: 85%
Sources: Conab, IBGE, MAPA
Domestic Consumption and Exports (2009)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cotton
Corn
Soybeans
Broiler
Beef
Coffee
Sugar
Ethanol
Internal Consumption Exports
Sources: USDA, Ministry of Agriculture of Brazil
ExportsUS$ Billion
Sugar 1st 1st 124 8.378
Coffee 1st 1st 81 3.762
Orange Juice 1st 1st 75 1.619
Soybeans 2nd 2nd 46 11.413
Beef 2nd 1st 142 4.118
Tobacco 2nd 1st 100 2.992
Ethanol 2nd 1st 48 1.338
Broiler 3rd 1st 146 5.307
Corn 4th 3rd 49 1.259
Pork 4th 4th 81 1.225
Main Products Production ExportsNumber of
Markets
2009 Ranking: Brazilian Production and Exports 2009 Ranking: Brazilian Production and Exports
Brazil plays a leading role as global supplier for agribusiness products:• Exports for more than 200 markets;• Diversified product range to ensure food security.
EXPORTS OF BRAZILIAN AGRIBUSINESSEXPORTS OF BRAZILIAN AGRIBUSINESSMAIN PRODUCTS - 2009MAIN PRODUCTS - 2009
Source: AgroStat Brasil, data from SECEX/ MDIC
Total: US$ 64,8 billions
SOYBEAN &
PRODUCTS 26,6%
MEAT 18,2%SUGAR &
ETHANOL 15,0%
COFFEE6,6%
TABACCO &
PRODUCTS4,6%
ORANGE JUICE2,5%
CORN 1,9%
LEATHER1,8%
OTHERS22,7%
EXPORTS OF BRAZILIAN AGRIBUSINESSEXPORTS OF BRAZILIAN AGRIBUSINESSMAIN DESTINATIONS - 2009MAIN DESTINATIONS - 2009
Source: AgroStat Brasil, data from SECEX/ MDIC 2009
Total: US$ 64,8 billions
EU 2729,3%
CHINA13,8%USA
7,0%RUSSIA
4,3%
SOUTH KOREA2,0%
SAUDIT ARABIA
2,3%
VENEZUELA2,4%
JAPAO2,8%
HONG KONG2,6%
INDIA2,8%
OTHERS30,6%
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
70
81 83 85 87 89 91 93 95 97 99 01 03 05 07 09*
U S
$
b
i l
l i
o n
54.8
25.5
-29.3
Brazilian Trade Balance
1980 – 2009*
TOTAL
AGRIBUSINESS
OTHERS
Source: MAPA and SECEX/MDIC *Estimate: last 12 months (Dec 08 – Nov 09)
MAIN DRIVING-FORCES OF AGRIBUSINESS CHANGES
AVAILABLE LAND - CERRADOS
GOVERNMENT POLICIES: MACROECONOMIC AND AGRICULTURAL
TROPICAL AGRICULTURAL TECHNOLOGY
FARMERS: SMALL AND MIDDLE
SOME LESSONS FROM BRAZILIAN EXPERIENCE
AGRICULTURE AND AGRIBUSINESS IS A KEY SECTOR FOR DEVELOPMENT
GOOD POLICIES (MACRO AND AGRICULTURAL) ARE IMPORTANT WITH ADEQUATE DEVELOPMENT PROGRAMS
PEOPLE WITH EXPERIENCE - GOOD FARMERS
KNOWLEDGE AND AGRICULTURAL TECHNOLOGY.
Thank you !