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CHANGES in AGRICULTURAL PRODUCTION in Brazil, 1947-65

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CHANGES in AGRICULTURAL PRODUCTION in Brazil, 1947-65 ,CHANGES IN AGRICULTURAL PRODUCTION IN' BRAZIL, 1947-65. (Foreign 'Al!.ricultural Economic R~gort.Y. / J,.o.uis F. Herrm.;;mn. Was,hington, DC: Economic Research Service. Jun~ :~972,~" (NAL Call No. A281 .•'9/Ag8Fl 1 .0 :; \\\\\2.8 \\\\\2.5 D~ III~ 3.~.. 111112.2 11111 :~ ~II~ 1II11~-·= \I\\I~ t I!& •.: \\\\\~ IIIII 1.4 11111 \.6 FOREIGN AGRICULTURAL ECONOMIC REPORT NO.79 <:hanges In Agricultural Production In Brazi'l, 1947-65 c· ! , i ECON 0 MIe RES EAR CH SE R V ICE • u. S. DE PAR TM E t.~T 0FAG RIC Ul TU R E <p ABSTRACT Brazil increased agricultural output about 4.5 pel'cent a year from 1947 to 1965, mainly by expanding the cultivated area, but it has the potential to double the area cultivated: Agricultural production greW lllorC rapidly thali popu larion in the 1950's and 1960's, but crop yields remained low and traditional practiccs were followed with low levels of fertilization. Human labor is the ()l1h source of power on three-fourths of the farms. Agricultural output increased rapidly enough to mcet rising dcmands for farm products resulting from population and income growth and to permit some exports. Agriculture klS remained the principal economic activity and source of foreign exchat;lge earnings jn Brazil with coffce being the major expOtt. The agricultural labor force r{)se about 2 pcrcent a year, and output per fannworker rose almost as fast. Keywords: Brazil, Economic growth al1d agriculture, '\gricultul'ul productivity, Techno­ logical progress. \1 CHANGES IN AGRICULTURAL PRODUCTION IN BRAZil, 1947-65 'I by Louis F. Hemnann Agricultural Economist ECONOMIC RESEARCH SERVICE U.S. DEPARTMENT OF AGRICULTURE WASHINGTON, O.c. 20250 JUNE 1972 -= tAt .... .For sale by tho Superintendant oC Docnments, U.S, Government PrInting Office WashIngton, D.C. 20402· PrIce $1 FOREWORD To provide better knowledge for planning and implementing country development programs, the Agency for International Development asked the Economic Research Service of the U.S. Department of Agriculture to conduct research on a project entitled "Factors Associated With Differences and Changes in Agricultural Production in Underdeveloped Countries." The first phase of the research compared and analyzed rates of growth in agricultural output and factors affecting them. It was reported in Changes in Ag7icultllre in 26 Developing Nations, 1948 to 1963, Foreign Agr. Econ. Rpt. No. 27, Economic Research Service, U.S. Department of Agriculture, November 1965. This was augmented by Growth of Crop and Livestock OU'i.J1ut in Selected Developit,'g Natiolls, 1948 to 1965, ERS-Foreign 226, Economic Research Service, U.S. Department of Agriculture, July 1968. The second phase of the research, a part of which is reported here, involved a detailed analysis of the specific relationship between factors and processes of change in agricultural output in selected countries. Agriculmral economists from the Economic Research Service, in cooperation with research organ:zations in each country, studied Greece, Taiwan, Mexico, Brazil, Colombia, India, and Nigeria. Their findings are summarized in Economic Progress in Agriculture ill Developing Nati07ls, 1950-68, Agr. Econ. Rpt. No. 59, Economic Research Service, u.S. Dept. Agr., May 1970. Brazil's agricultural development is discllssed in depth in this report with particular emf - :Isis on the period 1947-65. Attention is focused on the relative contributions of area cropped, livestock numbers, and crop and livestock yields to the country's agricultural growth. From these analyses suggestions are made for facilitating further development. The significance of Brazil's experience to other countries is also evaluated. Senior Agricultural Advisor Bureau of Technical Assistance Agency for International Dt.·;elopment ii PREFACE This study considers factors related to changes in Brazil's agricultural output and productivity-the nation's great potential for expanding the area under cultivation, problems of soil fertility, conditions determining the balance betwcen traditional and modern techniques, :lnd gencral economic and cultural background. These aspects of Brazil's agriculture bear strongly on the country's future growth. Moreover, since many of thesc conditions prevail elsewhere in the world in varying degrees, the results of this study can also be used in planning agricultur.al and economic development programs in other developing countries, particularly those still having unused land for development. Much of the work in Brazil was done under a memorandum of agreelllent between the Economic Research Service (ERS), the Getulio Vargas Foundation, the Ministry of Agriculture of Brazil, and the USAlD Mission to Brazil. The Getulio Vargas Foundation provided office space, professional and clerical assistance, and ready access to its accumulated knowledge of Brazilian agriculture. Special \) acknowledgment is due Julian Chacel, Director of the Brazilian I nstitute of Economics, Isaac Kerstenctsky, Director of Research, Sylvio Wanick Ribeiro, Chief of the Center for Agricu ltural Studies, and. econolllists Ruy Miller Paiva and Mauro de Rezende Lopes, all of the Getulio Vargas Foundation. Economic assistants were Vera Maria GuidI,) and Murilo de Gusmao. Pinto Lopes and Ida ?rinzac cOlllpiled data and made various statistical analyses for the study. University of Rio Grande do Sui, Porto Alegre, Rio Grande do SuI, under contract with ERS, studied factors affecting productivity of the corn and hog enterprises in that State. Eli de Moraes Sousa, llead of the Department of Agricultural Economics, led the study. Alzemiro E. Sturm, rural sociologist, and Roger Johnson and Bernard Erven of the University of Wisconsin contract team at University of Rio Grande do Sui contributed importantly to the study's development and execution. Rueben Buse, University of Wisconsin, under contract with ERS, carried out thc statistical analysis of components of changc in Brazil's agricultural output during 1947-55. Gencral guidance was provided by Raymond P. Christenscn, formerly Director of the roreign Development and Trade Division, ERS, and his predecessor in that position, Kenneth L. Bachman, under whose direction this work was carried out. Apprcciation is extended also to L. Jay A tkin50n, Chief of the Economic Developlllent Branch; his predecessor, Wade F. Grego!),; and the author's several colleagues in the overall project. iii CONTENTS Page SUMMARy ................................................................... viii CHAPTER I-BACKGROUND ..................................................... , 1 Natural Features ............................................................ 1 Settlement and Population Growth ................................................ 3 Diversity O~f Social and Economic Institutions ......................................... 3 Transportat.inm, Communication, and Electrification ..................................... 7 Commod'.ti "History .......................................................... 8 Forestry and Fisheries . .. .... 10 Succession of Dynamic Fronts ................................................... 10 Agricultural Regions .......................................................... 10 Recen t Economic and Social Progress .............................................. 11 CHAPTER II-GROWTH OF AGRICULTURAL OUTPUT .................................. 12 Gross Output-Overall Performance ................................................ 12 Gross Output-34 Products ..................................................... 12 CHAPTER III-CONTRIBUTIONS OF LAND AND LIVESTOCK NUMBERS AND PRODUCTIVITY ..... 22 Farmland ................................................................. 22 Cropland ................................................................. 22 Pasture land ................................................................ 24 Livestock Numbers ........................................................... 26 Aggregate Input of Cropland Livestock ...................•.......................... 26 Productivity ........................... " ..............•..................... 26 Crop Yields and Expansion in New Areas ............................................ 29 Summary ................................................................. 33 I CHAPTER IV-CONTRIBUTIONS OF FACTORS COMPLEMENTARY TO LAND .................. 35 Labor ................................................................... 35 Fertilizers ................................................................. 39 Plant Protection ............................................................. 43 Seeds ..•.................................................................. 44 Power ................................................................... 44 Irrigation ................................................................. 44 Nonfarm Component of Farm Expenses ............................................. 46 Capital Formation ........................................................... 46 Implications of Changes in Factors Complementary to Land ............................... 46 CHAPTER V-FACTORS EXTERNAL TO THE FARM .................................... 49 Domestic Demand ....................................•....................... 49 Foreign Demand ............................................................ 54 Agricultural Finance .......................................................... 56 Credit and the Structure of Agriculture ............................................. 61 Organized Land Development ...................................................
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