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Scenario and Perspectives in

BRAZILIAN AGRIBUSINESS MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY


Brazil

Agribusiness Power

Brazil has become a major player in the global economy. Most will be aware that Brazil is the fifth largest country in the world both by geographical area and population. Its economy now ranks as the sixth largest in the world. Equally as important, most will also be aware that the agribusiness power of Brazil has become more competitive at the global level, which is suitably reflected in its current ranking as fifth largest in the world. Brazil is a global leader and innovator in agricultural research specifically in the tropics. Brazil has also combined its knowledge of the agribusiness with provision of energy security. It is a major exporter of key products, thus, contributing to global food security. Furthermore, Brazil effectively reconciles agricultural growth with domestic and international social and environmental goals. The Federal Government is very clear about the role of Brazil in this new world economic order. In this context, Brazil aims at balancing the offer and supply of food with alleviation of hunger and creation of wealth. Clearly, Brazil needs to be ready to respond to the challenges that the world presents. This means that agricultural production has to increase ensuring more quality, which needs to be achieved in a sustainable way. Thus, the main focus of the current policies of the Federal Government of Brazil is directed towards achieving balance in dealing with the social, environmental and economic sectors. Within this context, not only has the Brazilian agriculture generated positive results lately, but it has also been contributing to the creation of wealth for Brazil and its population.

Ministry of Agriculture, Livestock and Food Supply

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There is a continued demand to feed the increasing world population. The world faces a pressing need to increase global food production whilst ensuring both quality and safety. Brazil is well situated to contribute to global food security. In addition to its capacity to produce most of the food for domestic consumption, Brazil, is a world export leader in soy complex products, meat, sugar, forest products, coffee beans, orange juice, tobacco and ethanol. We export to over 200 markets worldwide. Moreover, agriculture accounts for 25% of Gross National Product (GNP) and is responsible for the positive figures in the Brazilian balance of trade. We have succeeded in ensuring food security and generating surplus in Brazil by means of research, which developed our capabilities to diversify and innovate in our agricultural production system. Another positive outcome of the Brazilian agricultural research base is that our country has become a leader in agricultural innovation in the tropical world. Society also expects agriculture to contribute significantly to renewable energy production and to generate income for those who work the land and reduce the emission of greenhouse gases. It is important to note that the Brazilian agricultural policy has made significant progress towards sustainability. We have been developing an agricultural model that is aimed at preserving biodiversity and using its resources in a sustainable way; protecting soil and water quality; and enabling social inclusion in production as well as eradicating poverty. A significant development has been the new Brazilian Forest Code, the goal of which is to increase legal security in rural settlements. Brazil has been drafting forest legislation, which aims at consolidating conservation, ensuring food production and generating renewable energy. It is essential to demystify the perception that agriculture is an enemy of the environment. The Ministry of Agriculture, Livestock and Food Supply (MAPA) has been implementing various initiatives within this context. The Low Carbon Agriculture Programme (‘Agricultura de Baixo Carbono - ABC’) ought to be highlighted as its main goal reducing greenhouse gas emissions. During the 15th Conference of the Parties, at the Copenhagen Summit in 2009, Brazil signed a voluntary agreement to reduce greenhouse gas emissions by 37%, which represents a one billion ton drop in CO2 emissions by 2020.

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Scenario and Perspectives in Brazilian Agribusiness


With reference to Durban (COP17) in 2011, Brazil was one of the first countries to present clear goals, namely, an 80% reduction in deforestation in the Amazon Forest by 2020 and annual contributions to the Amazon Fund and Climate Fund. The Brazilian Government has also adopted complementary strategic measures, particularly by way of the Agroenergy Plan. It establishes both a framework and an orientation for the public and private initiatives involved in the generation of knowledge and technology that will contribute to the sustainable production of energy agriculture and the rational use of this renewable source of energy. Agroenergy accounts for 30% of the energy produced in Brazil. Almost 48% of this production is obtained from renewable sources, such as biomass, hydroelectric energy and biofuels. As such, Brazil is the world leader in this sector. The Brazilian Agricultural Research Corporation, Embrapa, is internationally acknowledged for pursuing groundbreaking work. Brazil is leading a true revolution in the field of agricultural research. Embrapa has been developing technological solutions that improve performance and productivity and contribute to the economic inclusion of small producers, notably taking regional and cultural diversity into consideration. Embrapa has established international partnerships with 56 countries and has scientific cooperation agreements with seven other countries to date. Another key component in the Brazilian national policies for provision of food and nutritional security lies under the responsibility of the National Food Supply Company - Conab, the Brazilian crop bureaux. Through its Food Procurement Programme, Conab ensures creation of jobs, generation of income and helps rural workers remain in their environment. Our plans for Brazilian agriculture in the next 20 years are based on efficient production of safe and healthy food. We aim to pursue a model that is able to achieve a number of key goals: to preserve biodiversity, to make use of its resources in a sustainable way and, by the same token, to consolidate the rural-urban relations and to eliminate rural poverty. Brazil understands that in order to build a green economy it is crucial to disseminate the culture of sustainability in all agricultural, livestock and forestry

Ministry of Agriculture, Livestock and Food Supply

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productive activities. It is important to remind ourselves that the tropical regions present the most challenging environments for agriculture; it is where the effects of climate change will be felt most acutely. We believe that it is possible to promote food security along with sustainable development. However, in order to achieve this, there must be international cooperation and investment in rural development along with dissemination of agricultural technology. The results that the world has achieved so far are impressive, but further progress is necessary to establish sound regulatory frameworks that will boost a green transformation in agriculture. Brazil is willing to work towards this direction. We believe that it is not sufficient for us to be leaders in food production. Brazil wishes and is determined to play a leading role as a green economy champion, a country with an innovative sustainable economic and developmental model.

Mendes Ribeiro Filho Minister of Agriculture, Livestock and Food Supply - Brazil

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Scenario and Perspectives in Brazilian Agribusiness


Agribusiness in

Numbers 2011/2012 Harvest Estimated Production

Grains

157 million tons

Sugar cane

571.4 million tons

Coffee

52 million 60 kg bags

Ministry of Agriculture, Livestock and Food Supply

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Low Carbon Agriculture Programme (ABC Programme)

The goal is to reduce CO2

165 million

emissions by tons over the next

10 years

The ABC Programme establishes, for the 2011/2012 harvest, to encourage technological processes that neutralize or minimize the effects of greenhouse gases in agriculture

US$ 1.74 billion

Rural producers and cooperatives can apply for up to credit for funding at 5.5% a year interest, to be repaid over 5 to 15 years.

US$ 553.91 thousands

+

Between July and December of the current US$ 85.30 Agricultural and Livestock Plan, the resources granted by the ABC Programme were of US$ 152.32 million, a 79% increase over the US$ 85.30 million provided for the previous harvest.

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Scenario and Perspectives in Brazilian Agribusiness

% 79 increase US$ 152.32


Gross Value of

Production (GVP) The Gross Value of Production (GVP) corresponds to the agricultural revenue obtained from the 20

main crops

In 2011, the GVP reached the record amount of US$ 111.10 billion, the highest amount recorded since 2007, when the index started being monitored

11.7% GVP increased by 11.7% between 2010 and 2011. The products that contributed the most to obtain this result were:

Coffee

Production increase

2011

2010

Maize Cotton

+

Grapes

Regional data from 2011 show leadership of the Midwest region in production value generation

80%

of value generated in 2011

Ministry of Agriculture, Livestock and Food Supply

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Balance of Trade

Agribusiness - 2011

Record Exports

US$ 94.6 billion

23.7% over 2010

+

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Goal for

2012:

> US$ 100 billion

Scenario and Perspectives in Brazilian Agribusiness


Sowing the Seeds of

Sustainability It is possible to increase production without compromising the regenerative capacity of natural resources The Brazilian Ministry of Agriculture, Livestock and Food Supply has created the Low-Carbon Agriculture Programme

+income +food +environmental conservation

The greenhouse effect gases create a barrier between Earth and the Sun, leading to the warming of the planet and to climate change

The market demands production systems that protect the environment and mitigate the effect of greenhouse gas emissions

The agricultural activity, when developed in an inadequate form, is responsible for parts of effect of greenhouse gas emissions

Brazil broadens its offer of cleaner, healthier food

Hunger affects 1.02 billion people, almost 1/6 of the world population. Brazil can help in the reduction of hunger in the world

In addition to producing enough food for domestic consumption, Brazil is the second largest exporter of food in the world

It is one of the few countries capable of producing more food for the planet.

Brazil is a pioneer in programmes that support the mitigation of greenhouse gas effect

The Low-Carbon Agriculture Programme provides incentives for farmers to adopt good agricultural practices and help preserve the environment

sustainable agricultural practices - great results for brazil and the world

sustainable agricultural practices of the low-carbon agriculture programme (abc programme)

emission reduction (in million tons of CO2 equivalents)

The ABC Programme suggests six sustainable agricultural practices to be adopted by farmers over the next years:

83 - 104

targets No tillage system

18 - 22

It eliminates the need for tilling the soil and avoids erosion by sowing directly in the straw generated by the previous crop. The technique protects the soil, reduces the use of water and increases productivity of the crops

Expand over 8 million hectares

16 - 20 10

Animal waste treatment

Process 4.4 million cubic meters of waste from pig raising and other waste

Makes use of pig waste and other animals waste for the production of energy (gas) and organic compound. Possibility of gas emission reduction certificates issued by buyers

Crop – Livestock – Forest Integration The idea is to alternate between pasture/crop areas and forests in the same region. This helps recover the soil, increases revenue and creates Jobs

6,9 no records available until now

Increase the area making use of the system over 4 million hectares

Biological fixation of nitrogen Develops microorganisms/bacteria to capture existing nitrogen in the air and transform it into organic matter for the crops Reduces the cost of production, mitigates greenhouse gas emissions and improves the fertility of the soil

Increase the use of the technique over 5.5 million hectares

Forest planting The planting of eucalyptus and pine trees, for instance, provides future sources of income for farmers and reduces carbon emissions through the oxygen released by the trees

Increase the area from 6 million hectares to 9 million hectares

Recovery of degraded areas Transforms degraded land into productive areas for the production of food, fiber, meat and forests.

Recover 15 million hectares

Ministry of Agriculture, Livestock and Food Supply

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www.agricultura.gov.br

Ministry of Agriculture, Livestock and Food Supply


Perspectives in Brazilian Agribusiness - 2012