Great Concentration of Production 2006 Census
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Transcript of Great Concentration of Production 2006 Census
IFPRI Meeting, Bold actions for stimulating inclusive growth, June 2 2010
Great concentrationGreat concentration of productionof production2006 Census2006 Census
Explanation: technology or farm size in ha?Explanation: technology or farm size in ha?
Great concentrationGreat concentration of productionof production2006 Census2006 Census
Explanation: technology or farm size in ha?Explanation: technology or farm size in ha?
Eliseu AlvesEliseu Alves
The role of agricultural research and Embrapa in Brazilian poverty reduction
Agreement Embrapa – IFPRI
IFPRI research project title:
• Sinshen Diao leader and responsible for step 4;
• Eduardo Magalhães consultant at IFPRI and responsible for Step1;
• Daniela Rocha consultant and data support collection at IBGE
Research team from IFPRI:
Embrapa – IFPRI partnership
• Geraldo da Silva e Souza, leader and responsible for step 4;
• Antônio Flávio Dias Avila responsible for step 4;
• Eliane Gomes responsible for step 3.
• Collaborators from Embrapa
• Eliseu Alves, Fernando Garagorry, Cláudio Barroso and Maria Abadia Alves.
Research team from Embrapa:
Embrapa – IFPRI partnership
• To establish gross income classes for the IFPRI research project;
• To give an idea of the groups of farms for which there is in agriculture a solution of the income problem ;
• To classify the farms to fundament the sample design.
Objectives of the gross income study
• 85% of the population is urban: urban competition for labor;
• Minimum wage is required and well known;
• Strong links with the international market;
• Enforcement of the minimum wage law;
• Presence of television, newspaper and radio;
• Social movements.
Gross income study: dynamic labor market:Opportunity cost is well known by family. Reasons:
Region Index (%)
North 74.40
Northeast 72.55
Center-West 89.50
Southeast 93.28
South 84.11
Brazil 84.59
Urbanization index, 2007
Region Number (1,000) %
North 3,630 11,6
Northeast 14,770 47,1
Center-West 1,789 5,7
Southeast 6,440 20,5
South 4,739 15,1
Brazil 31,368 100,0
Rural population, 2007
Region Farm number % R$/farm
North 475,775 9.2 12,923.88
Northeast 2,454,006 47.4 11,578.44
Center-West 317,478 6.1 62,495.55
Southeast 922,049 17.8 52,009.71
South 1,006,181 19.5 41,210.64
Brazil 5,175,489 100,0 27,789.50
Number of farms and gross income by farm
• gifmw = gross income by farm by month in minimum wage units
Gross income
RegionsFrequency
NºFrequencyRegion (%)
FrequencyBrazil (%)
ProductionRegion (%)
gifmw
Brazil 3,775,826 72.96 100,0 4.04 0.43
North 360,190 75.71 9.54 11.07 0.53
Northeast 2,149,279 87.58 56.92 9.64 0.35
Center-West 216,215 68.10 5.73 1.79 0.46
Southeast 572,859 62.13 15.17 1.99 0.46
South 477,283 47.44 12.64 2.60 0.63
Minimum wage gross income class [0,2]
Obs.: Month value of the minimum wage = R$300.00 (2006).
Minimum wage class
Number of
Farms
% R$/farm/month
0 579,024 15.46 0
(0, ½] 2,014,567 51.62 53.64
(1/2. 1] 611,775 17.11 214.57
(1, 2] 570,480 15.81 428.55
Total 3,775,826 100.00 189.00
Subclasses of the [0,2] minimum wage gross income class [0,2]
Regions FrequencyNº
FrequencyRegion (%)
FrequencyBrazil (%)
ProductionRegion (%)
gifmw
Brazil 975,974 18.86 100,00 11.08 4.53
North 92,799 19,50 9.51 21.79 4.01
Northeast 228,076 9,29 23.37 12.19 4.22
Center-West 71,287 22,45 7,30 5.56 4.30
Southeast 226,625 24,58 23.22 7.83 4.66
South 357,187 35,50 36.60 15.12 4.88
Minimum wage gross income class [2,10]
Regions FrequencyNº
FrequencyRegion (%)
FrequencyBrazil (%)
ProductionRegion (%)
gifmw
Brazil 423,689 8.19 100.00 84.89 80.04
North 22,786 4.79 5.38 67.13 50.32
Northeast 76,651 3.12 18.09 78.17 80.49
Center-West 29,976 9.44 7.08 92.65 170.35
Southeast 122,565 13.29 28.93 90.18 98.01
South 171,711 17.07 40.52 82.28 55.19
Minimum wage gross income class >10
Regions FrequencyNº
FrequencyRegion (%)
FrequencyBrazil (%)
ProductionRegion (%)
gifmw
Brazil 22,188 0.43 100.00 51.34 924.37
North 585 0.12 2.64 25.52 745.17
Northeast 3,521 0.14 15.87 49.3 1,112.58
Center-West 4,389 1.38 19.78 73.09 917.99
Southeast 7,830 0.85 35.29 60.36 919.67
South 5,864 0.58 26.42 35.49 697.10
Minimum wage gross income class >200
Economic policies for each of the three minimum wage classes
Economic policies for each of the three minimum wage classes
• Income transfer policies:
• Retirement policies;
• Food stamp policies;
• Elimination of restrictions to part time work
[0,2] minimum wage class
The low income problem cannot be solved in agriculture only
Whenever possible:
• Small irrigation systems;
• Home industry;
• Simple technologies that increase yield;
[0,2] minimum wage class (cont.)
• New rules for rural credit: operational or investment credit;
• Contract between extension office and farmer or group of farmers with explicit penalties for both parties;
• A plan that integrate farm and home operations for credit purposes;
•The participation of family farmers in extension boards with supervision powers.
[2,10] minimum wage class
The low income problem can be solved at the farm level
• Competitive interest rate at the international level;
• Training of private extension at research units;
• Simplification of the export procedures;
• Reduction of the Brazilian cost: infrastructure,
• Excess of bureaucratic rules and corruption;
• Sound macroeconomic policies.
• Policies to foster the exports and to reach new markets.
• To increase investments in research.
Over 10 minimum wage class
They can take care of themselves
Thank you!Thank you!
Eliseu AlvesEliseu Alves
[email protected]@embrapa.br
+55 61 3448-4202+55 61 3448-4202