AN OVERVIEW ON AND IN

Rui Samarcos Lora CditCoordinator Office for International Relations Ministry of Agriculture, Livestock and Food Supply

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Summary

1 – Brazilian Agriculture in Figures 2 –Government and Agriculture in Brazil 3 - Main products , prod uction and producti vit y 4 -Brazilian Agricultural Trade 5 –Trends and perspectives 6 - New challenggges: future of agriculture in Brazil

- 2 - Brazilian Agriculture in Figures

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Brazil in Numbers

Area: 8.514.876,5 km² 13% fresh water in the world 388mi ha of arable land 90mi há are not in use

Agribusiness: 33% GDP 42% Exports 37% Jobs 17. 7mi rural workers

Borders: 23. 086 km total 7.367km - ocean 15.719km - land With 10 countries

- 4 - BRAZILIAN BRAZILIAN BIOMES TERRITORY Amazon Biome 420 M ha Crops 60 M ha Pastures 160 M ha Planted Forests 6,8 M ha Brazil 851 M ha

Sources: Ministry of Agriculture; Ministry of Environment - 2006

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LANDDISTRIBUTION

Farms (()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 hec tares 24,2% 24, 0% > 1000 hectares 6,4% 69,6% - 6 - Agricultural production started primarily 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 energy production along with environment protection.

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Agribusiness Expansion: International Partnerships (Japanese Case)

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

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Government and Agriculture in Brazil

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Ministry of Agriculture, Livest ock an dFoodS upp ly

- 12 - Ministryyg of Agriculture , Livestock and Food Supp ppyly

MINISTER

DEPUTY MINISTER TECHNICAL ASSISTANCE STRATEGIC FOR MANEGEMENT OFFICE LEGAL ADVICE

SECRETARIAT OF SECRETARIAT OF SECRETARIAT OF SECRETARIAT OF SECRETARIAT OF ANIMAL HEALTH, PLANT AGRICULTURAL INTERNATIONAL PRODUCTION AND AGRICULTURE EMBRAPA CEPLAC CONAB PROTECTION AND DEVELOPMENT AND RELATIONS AGRIENERGY POLICY INSPECTION COOPERATIVISM

SFA CEASA LANAGRO REGIONAL INMET MG/SP OFFICES

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Main Products, Production and Productivity

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

TOTAL=US$195,9

Source: CNA billion - 15 -

Harvesting Corn field

GRAINS

Harvesting Soybean field - 16 - Grains Production +774% If Brazil had maintained the same 3URGXFWLRQ technology used in 1960, it would be necessary to occupy more than 145 million hectares of land

  Inhabitants (million) 70 190,7

*UDLQ3URGXFWLRQ (million tons) 17,2 150,8

$UHD (million hectares) 22 47,5

3URGXFWLYLW\ (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 AREA 1991 to 2012

Production Growth:136%=4,4%/ year

HarvestedArea Growth:30%=1,4%/year

Source:CONAB - 18 - MAIN GRAINS (2011/12)

Source: CONAB - 19 -

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

Source:CONAB - 20 - No tillage Sowing corn (i(environmen tllfidl)tally friendly) (2nd harvest)

Harvesting

Scale, mechanization Two crops in the same year without - 21 -

MEAT

- 22 - Livestock +251% +HUG If Brazil had maintained the same technology used in 1960, it would have to +39% direct more than 259 3DVWXUH million hectares of land to pasture

  Herd (million heads of cattle) 58 204

Pasture area 122,3 (million hectares) 170

Productivity 0,47 1,2 (heads per hectare)

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

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MEAT PRODUCTION (1994 to 2011) Broiler:+273%(94 2011)

Beef: + 74 % (94 2011)

Pork: +148% (94 2011)

Sources: - Fórum Nacional Permanente da Pecuária de Corte da CNA, Chicken – Ubabef, Pork - Abipecs - 24 -

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SUGAR CANE, AND

Sugar:+388%

Ethanol:+97%

HarvestedArea:+95 %

Source: Ministry of Agriculture – Anuário Estatístico da Agroenergia 2010 - 26 - ENERGY MATRIX: BRAZILIAN RENEWABLE MIX BRAZILIANENERGYMIX(2009)

WORLDENERGY MIX (2007)

Shareofrenewable energyinthetotal primaryenergy:47%

Source: MME/BEN, 2010

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Brazilian Agricultural Trade

- 28 - Foreign Trade US$76 ELOOLRQ Exporter for 212 DESTINATIONS

1960 BRAZIL Importer of FOOD 2010 BRAZIL

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2011RANKING:BRAZILIANPRODUCTIONAND EXPORTS Exports No.of PdtProduct PdtiProduction EtExports (US$ Markets Billion) Sugar 1 1 125 14,9 1 1 134 8,7 Juice 1 1 68 2,4 Soybean (()Grains) 2 1 43 16,3 Beef 2 2 140 5,3 Poultry 2 1 145 7,5 3 4 48 2,6 PkPork 4 3 74 141,4

Sources: USDA and Ministry of Agriculture,Livestock and Food Supply - 30 - BRAZILIAN AGRIBUSINESS TRADE BALANCE 1990 – 2012

Source:MAPAand *June2011– May SECEX/MDIC 2012 - 31 -

BRAZILIAN TRADE BALANCE 1990 – 2011

Source:MAPAandSECEX/MDIC - 32 - AGRICULTURAL EXPORTS MAIN NET EXPORTERS – 2009

Source: TradeMap / CCI Elaboration: Ministry of Agriculture - 33 -

BRAZILIAN AGRIBUSINESS EXPORTS MAIN PRODUCTS – 2010

Total: US$ 76,4 billion Source: Agrostat, Ministry of Agriculture - 34 - BRAZILIAN AGRIBUSINESS EXPORTS MAIN DESTINATIONS – 2010

Total: US$ 76,4 billion Source: Agrostat, Ministry of Agriculture - 35 -

MARKET SHARE MAIN AGRICULTURAL PRODUCTS – 2009

36 - 36 - DOMESTIC CONSUMPTION AND EXPORTS (2010)

Sources:Conab,Ubabef,Ministérioda Agricultura,Cecafé,CNA - 37 -

Trends and Perspectives

- 38 - Production Expansion LQ\HDUV  “MATOPIBA” 0DUDQK¥R 7RFDQWLQV 16.7(2020/21) 3LDX¯ 0LOOLRQWRQVRIJUDLQV %DKLD Production and Exports

cotton,beef , soybean, poultry,andpaper

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Production of Grains and Meat Projections of the Ministry of Agriculture

62.6 318.2 99.3% 81.5% 

31.2 175.8 26.8% 23% 

24.6 135.4

beef, ,,  pork, soybean,corn, poultry

Million tons Million tons

- 40 - GLOBAL TRENDS Worldpopulationgrowthwithincreasingpercapita income Increasingdemandforagriculturalproducts(food,fuel, fee d,fib er... )

Shiftsinconsumptionhabits(moremeat)

Shortage of newareas for agricultural production

Challengesto food security Continuousneedoffoodproductionincrease

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AGRICULTURALPRODUCTIONINDEX:19922019 FAOOCDEProjections

“Brazilisthefastestgrowingagricultural sector by far,growi ngb yover 40% to2019 , whencomparedtothe200709baseperiod.” (OECDFAOAgriculturalOutlook20102019)

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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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) - 44 - BRAZILIAN AGRIBUSINESS COMPETITIVE ADVANTAGES

% Stronggg, thriving econom y & Institutional framework

% 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 BRAZIL 2001-2009

- 46 - FARMING VOCATION & BUSINESS ENTREPRENEURSHIP Producer Support Estimate by country (1995-97 and 2008-10) Per cent of gross receipts

Brazil’s competitiveness doesn’t rely on subsidies.

Source: Organization for Economic Cooperation and Development , PSE/CSE database, 2011. - 47 -

New challenges: fu ture o f agr icult ure i n B raz il

- 48 - Agricultural Attaché

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International Cooperation

- 50 - Low Carbon Emission Programme (ABC)

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Biofuels

52 - 52 - Infrastr uctur e Wo rk s

Investment Ports (1-13): US$ 722 million Waterways (1-8): US$ 666 million Waterway (A-F): US$ 1.22 billion Total: US$ 2.61 billion Source: Macrologg()ística (2010)

Waterways

1 Modernization of the Port of (RO) 2 Enhancement of Madeira River Waterway (AM / RO) 3 Building of Mirituba River Port (PA) 4 Dredging and rock removal in rivers Juruena and Arinos (MT) 5 Building of sluice in Cachoeira Meia Carga (MT) 6 Signaling in rivers Juruena and Arinos (MT) 7 Building of sluice in Boa Esperança (Parnaíba) 8 Signaling, dredging and rock removal in river São Francisco

TOCANTINS RIVER A Dredging of canal in Quiriri (PA) B Dredging from Marabá to Vila do Conde (PA) C Rock removal in Pedral do Lorenço (PA) D Dredging and rock removal from Marabá (PA) to Imperatriz (MA) E Building of sluice in Estreito (TO) F Building of sluice in Lajeado (TO) Ports

1 Building of port in Outeiro (PA) 2 Terminal TERFRON ( Büngue) (PA) Navigable Waterway 3 Building of area for general cargo in Itaqui (MA) 4 Building of Berth 100 in the Port of Itaqui (MA) Non-Navigable Waterway 5 Dredging of Berths 100-103 and building of backport areas in Berths 100 and 101 in the Port of Itaqui (MA) 6 Recovery of Berths 100-102 in Itaqui (MA) Existing Road 7 Enlargement of()f grains terminal in Itaqui (MA) 8 Building of terminal in Itaqui (MA) Planned / In Work Road 9 Modernization of Santana Port (AM) 10 Enlargement of multiple use terminal in the Port of Santarém (PA) 11 Building of Pier 200 in the Port of Santarém (PA) Existing Railway 12 Plant bulk terminal in Santarém (PA) 13 Multiple use terminal 2 in Santarém (PA) Planned / In Work Railway - 53 -

CtCCostCompari son Harvest Transportation to Ports

US$/Ton 90 85 83 78 80 204% 70 64 59 60 51 50 43

40 34 53.3% 28 30 23 23 20 20 20 17 17 20 18 18 20 15 15 16 16 17 14 14 15 10

0 42.9% (*) 2003 2004 2005 2006 2007 2008 2009 2010 2011

Argentina USA BrasilBrazil US$ 20 US$ 23 US$ 85 Source:Anec (2011)

- 54 - SPECIFIC AMAZON CONCERN

In Brazil, 80% of a farm in the Amazon must remain forested; in other areas, thitilthe requirementis lower, falling to 20%.

None of the world's large farm producers that compete with Brazil - USA,,p,, Europe, China, and Australia - obliges its producers to preserve any ftforest.

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CliConclusion: “Agr icu ltura llR Re la tions Braz il and Japan”

- 56 - 䛹䛖䜒䛒䜚䛜䛸䛖䛤䛦䛔䜎䛧䛯

[email protected] [email protected]

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