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Transcript of 1 BRAZILIAN AGRIBUSINESS BRAZILIAN AGRIBUSINESSOverview China Development Bank - MDIC Meeting...
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BRAZILIAN AGRIBUSINESSBRAZILIAN AGRIBUSINESSOverviewOverview
China Development Bank - MDIC Meeting
Brasília, January 21st, 2011
Sources: USDA and MAPA
2009 RANKING: BRAZILIAN PRODUCTION AND EXPORTS Exports
US$ 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
AGRICULTURAL PRODUCTION INDEX: 1992-2019FAO-OCDE Projections
3
“Brazil is the fastest growing agriculturalsector by far, growing by over 40% to 2019, when compared to the 2007-09 base period.” (OECD-FAO Agricultural Outlook 2010-2019)
Source: Ministry of Agriculture, Brazilian Institution of Geography and Statistics (pastures – 2006)
AGRICULTURE AREA2007/2008 HARVEST
Most of recent expansion
in agricultural area is on
pasture land
Source: Agriculture and Livestock National Confederation – June 2009
MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION
5
BRAZILIAN AGRIBUSINESS EXPORTSBRAZILIAN AGRIBUSINESS EXPORTSMAIN PRODUCTS – 2010*MAIN PRODUCTS – 2010*
Source: Ministry of Development, Industry and External Commerce. 2009
Elaboration: Ministry of Agriculture6
Total: US$ 73.9 billion
* From November 2009 to October 2010
BRAZILIAN AGRIBUSINESS EXPORTSBRAZILIAN AGRIBUSINESS EXPORTSMAIN DESTINATIONS – 2010*MAIN DESTINATIONS – 2010*
Source: Ministry of Development, Industry and External Commerce. 2009
Elaboration: Ministry of Agriculture7* From November 2009 to October 2010
Total: US$ 73.9 billion
Sources: Ministry of Agriculture, Brazilian Institute of Geography and Statistics - 2009
DOMESTIC CONSUMPTION AND EXPORTS
Roughly 70% of the Brazilian agricultural production aims the national market.
Elaboration: Ministry of Agriculture8
Harvesting soybean
Harvesting cotton
Corn field
Soybean field
GRAINS
9
GRAINS - PRODUCTION AND AREA1991 to 2010
Source: National Company of Food Supply 10
37,9 35,6 38,5 36,6 36,9 37,843,9
49,1 46,2 47,7 47,357,9
68,3
81,178,4
82,4
100,3
123,2
114,7
122,5
131,7
143,7
135,2
149,0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Mill
ion
tons
and
hect
ares
Harvested AreaGrowth: 24,9% = 1.2% / year
Production
Growth: 157,3% = 5,1% / year
MEAT Large scale, state of the art production
Biggest exporter of beef and poultry
¹ The meat consumption in Brazil is close to 100 kg / inhabitant / year, with more than 43 kg of chicken meat, 37 kg of beef and 14 kg of pork. Domestic demand accounts for about 70% of chicken production, 80% of beef production and 85% of pork production.
Source: Conab
MEAT PRODUCTION EVOLUTION
High domestic consumption and #1 world exporter
9.180
5,200
10.932
3,411
3.190
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
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Th
ou
sa
nd
Me
tric
To
ns
Broiler: + 170% (95-09)
Beef: +70 % (95-09)
Pork: + 117% (95-09)
SUGARCANE
13
4,3
8,9
7,4
31,3
0
2
4
6
8
10
12
14
16
18
20
0
5
10
15
20
25
30
35
Ha
rve
ste
d a
rea
(millio
ns
ha
)
Pro
du
cti
on
Harvested area Sugar (million tons) Ethanol (million m³)
11,5
27,6
SUGAR AND ETHANOL: PRODUCTION AND AREA
Estim
ate
SUGARGrowth 2002-2009: 93.2% (8.6% p.y.)
ETHANOLGrowth 2002-2009: 142.4% (11.7% p.y.)
Sources: Ministry of Agriculture, National Company of Food Supply
Harvested AreaGrowth 2002-2009: 44.5% (5.4% p.y.)
14
15
Brazilian Coffee
One country, many flavors
FRUITS: Diversity and
Good Quality
MILK
17
MILK
Source: Milk National Forum – Brazilian Confedeeration of Agricultrue and Livestock
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Increasing production lead to self sufifciency
PLANTED FORESTS
(Mil
lio
n h
a)
Hardwood
5,5
1512
18
40,5
05
1015202530354045
m³/ha/year
Conifers
3,5 2,5
10
22
37,6
05
10152025303540
m³/ha/year
Source: ABRAF
Forestry productivity
Planted forests - 6.8 million ha support a diversified wood industry Biggest world exporter of hardwood pulp Highest productivity country in the world Largest growth potential
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FOREIGN INVESTIMENTFOREIGN INVESTIMENTIN AGRIBUSINESSIN AGRIBUSINESS
World population growth with increasing per capita income
Continuous need of food production increase
GLOBAL TRENDSGLOBAL TRENDS
Shortage of new areas for agricultural production
Challenges to food security
Increasing demand for higher-quality, better, protein-intensive food (i.e.meat)
BRAZILIAN AGRIBUSINESS BRAZILIAN AGRIBUSINESS COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES
Strong, thriving economy & Institutional framework
Leadership in tropical technology
Natural resources abundance (land, water, solar energy)
Farming vocation & Business entrepreneurship
STRONG, THRIVING ECONOMY &
INSTITUTIONAL FRAMEWORK
Social inclusion & income distribution (upgrowth of middle class)
Investment enhancement
Consolidated democracy, with stable legal and institutional framework
Infrastructure long-term investment program, with strategic actions
Sustainable growth based on macroeconomic prudential policies
Robust fiscal rules (primary surplus & rigid control of public deficit)
Low external vulnerability (with free capital flow)
Land investments in Brazil follow well established regulatory procedures
permitting several forms of access to foreign investors
EVOLUTION OF FOREIGN DIRECT INVESTMENTS IN BRAZIL
2001-2009
24
FOREIGN DIRECT INVESTMENTS By origin - average 2007-2009
25
STRONG, THRIVING ECONOMY & INSTITUTIONAL FRAMEWORK
No restrictions on commodity exports
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
70
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10*
U S
$
b
i l
l i
o n
61.2
17.4
-43.8
BRAZILIAN TRADE BALANCE (1990 – 2010*)
Source: Ministry of Development, Industry and Foreign Trade
Elaboration: Ministry of Agriculture *Last 12 months (Nov09 – Oct 10)
TOTAL
AGRIBUSINESS
OTHERS
STRONG THRIVING ECONOMY & INDUSTRIAL FRAMEWORK
INFRASTRUCTURE LONG-TERM INVESTMENT PROGRAM
27
LEADERSHIP IN TROPICAL TECHNOLOGY
Continuous & persistent public and private investments on R&D
Opened partnerships with other countries
Expressive results of productivity
Efficient use of natural resources
Producer Support Estimate (Public Support to Farmers)
1%5% 6%
9%14% 12% 14%
21%
26%
30%
50%
Ne
w
Ze
lan
d
Au
tra
lia
Bra
zil
Ch
ina
Me
xic
o
US
A
Ru
ss
ia
Ca
na
da
OE
CD
E.U
.
Ja
pa
n
Source: Organization for Economic Cooperation and Development
Brazil’s competitiveness
doesn’t rely on subsidies.
29
FARMING VOCATION & BUSINESS ENTREPRENEURSHIP
Harvesting soybean
Sowing corn(2nd harvest)
Scale, mechanization
Two crops in the same year without irrigation
No tillage (environmentally friendly)
DOUBLE CROPPING - CORN AFTER SOYBEAN
30
TECHONOLOGY and ENTREPRENEURSHIP
Direct Investment on Projects (Transportation, Storage, Harbourage)
Production
InfrastructureFood
Processing
Distribution Logistics
Machinery and Equipments
The agribusiness productive chains offer several possibilities for foreign investors:
Capital Markets (Stocks, Investment Funds)
Contract Farming (payment in products)
Partnerships and Joint Ventures
FOREIGN INVESTMENT IN AGRIBUSINESS
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Ministry of Agriculture, Livestock and Food Supply
Department for Agribusiness International Promotion
Esplanada dos Ministérios, Bloco D, 3º Andar, sala 338
70043-900 - Brasília - DF, BRAZIL
Phone: +55 (61) 3218-2425
E-mail: [email protected]
www.agricultura.gov.br
Maurício Fleury CuradoAdvisor for Foreign Investment
32