the brazilian agriculture an overview by dr …€™s agricultural products position in the world...

THE BRAZILIAN AGRICULTURE

an overview by

Dr Achim SCHUDT

BRAZIL

2Brazil covers

47% of South America

BRAZIL USA GERMANY

Surface sq km 8'547'403 9'826'630 357'000 Agricultural Areas million ha 367 420 17 Cereal land million ha 62 248 12

Pasture million ha 210 124 5 Expansion Land million ha 95 - -

DIMENSIONS 2009

Some numbersOfficial Language Portuguese

Currency Brazilian Real - R$

System of Government Presidentialist

President since 2002 Luiz Inacio Lula da Silva

Capital City Brasilia - DF

States of the Federation 26 + DF

Surface 8.547.403 sq km

Population 193 million inhabitants

Main Cities population - 2007

(inhabitants)

São Paulo 20'090'249

Rio de Janeiro 6'161'047

Salvador 2'948'733

Brasília 2'557'157 Fortaleza 2'473'614

FEDERATIVE REPUBLIC OF BRAZIL

3

Gross Domestic Product - 2008 US$ 1.994 trillion

GDP per capita - 2008 US$ 10,551

GDP by sector - 2007 agriculture : 5,5%

industry: 28,7%

services: 65,5%

Inflation - 2008 9,81%

BRAZILIAN ECONOMY

Exports - 2008 US$ 197.9 billion

Export goods

transport equipment, iron

ore, soybeans, footwear,

coffee, autos, automotive

parts, machinery

Main export partners

United States 15.8%,

Argentina 9.9%, China

7.9%, Netherlands 5.4%,

Germany 4.7% (2008*)

Imports - 2008 US$ 173.2 billion

Import goods

machinery, electrical and

transport equipment,

chemical products, oil,

automotive parts,

electronics

Main import partners

United States 11.9%,

China 10.6%, Argentina

9,0%, Germany 7,5%,

Nigeria 4.5%, Japan 4.0%

(2008)

BRAZILIAN COMMERCIAL TRADE

Population

4source: FAO

Population:

193 million inhabitants

Brazil’s Agricultural Products Position in the World

Production Exports Production

(quantity) (quantity) costs

Sugar 1. 1. 1.

Ethanol 1. 1. 1.

Soybean 2. 1. 2.

Maize 3. 4. 1.

Beef 2. 1. 1.

Poultry 3. 2. 1.

Swine 3. 4. 1.

Coffee 1. 1. 1.

Products

5

BRAZIL - MAIN AGRICULTURAL PRODUCTS EXPORTED

Soybean

28%

Meat

15%

Cellulose

8%

Sugar

7%

Others

17%

Wood products

7%

Coffee

5%

Leather products

4%

Fruit juice

3%

Leather

3%

Tobbacco

3%

Coffee 1. 1. 1.

Orange 1. 1. 1.

Worldbank Country Ranking by Product- Brazilian Classification -

1st Brazil

2nd Viet Nam

3rd Colombia

COFFEE ORANGE 1st Brazil

JUICE 2nd United States

PROD. 3rd Mexico

FRESH 1st Brazil

ORANGE 2nd United States

PROD. 3rd China

ORANGE SUGAR 1st Brazil

PROD. 2nd India

3rd China

BRAZIL – 1st PLACE

BRAZIL - 2nd PLACE

6

1st United States

2nd China

3rd Brazil

CORN

MEAT, 1st United States

BEEF & 2nd Brazil

VEAL PROD. 3rd China

MEAT, 1st China

SWINE 2nd United States

PROD. 3rd Brazil

SOYBEAN 1st United States

OILSEED 2nd Brazil

PROD. 3rd Argentina

POULTRY 1st United States

BROILER 2nd China

MEAT PROD. 3rd Brazil

TURKEY 1st United States

MEAT PROD. 2nd Brazil

3rd Canada

BRAZIL - 2nd PLACE

BRAZIL - 3rd PLACE

And also : Cheese Prod – 2nd / Milk Powder Prod – 3rd /

Cottonseed Prod – 4th / Soybean Meal Prod – 4th / Fluid Milk Prod – 5th

Economical Occupation

7

Major economic centers

Regional Metropolis

Megalopolis

More developped industrialized

and urbanized areas

Modern agricultural areas

Traditional agricultural areas with some cities and industries

Sparsely populated areas with natural inlands

Sparsely populated areas with stagnant economy

"Agricultural frontier" expansion


MAIN PRODUCTS

Land Cover

9source: FAO

CLIMATE

10

Wet Equatorial

Wet Coastal

Tropical

Semiarid

CLIMATES CONTROLLED BY

TROPICAL AND POLAR AIR MASSES

Wet Subtropical

Hot Current

Cold current

Permanent Crops & Arable Lands

Specification

Area (million

ha)Pasture 210

Annual Crops 47

Permanent Crops 15

Planted Forest 5

Cities 20

Amazon Biome 350

Legal reserve 55

11

source: FAO

Legal reserve 55

Idle land 95

Other uses 54

TOTAL 851

Farming LandProperties Division

Layers Average

total area (ha)

nr of

properties % ha %

Less than 10 1338771 31,6% 7616113 1,8% 5,7From 10 to 25 1102999 26,0% 18985869 4,5% 17,2

From 25 to 50 684237 16,1% 24141638 5,7% 35,3

Properties Total area

BRAZIL 2003 - FARMINGLAND - PROPERTIES DIVISION

12

Less than 2% of brazilians own 40% of the agricultural area

From 25 to 50 684237 16,1% 24141638 5,7% 35,3

From 50 to 100 485482 11,5% 33630240 8,0% 69,3

From 100 to 500 482677 11,4% 100216200 23,8% 207,6

From 500 to 1.000 75158 1,8% 52191003 12,4% 694,4

From 1.000 to 2.000 36859 0,9% 50932790 12,1% 1381,8

More than 2.000 32264 0,8% 132631509 31,6% 4110,8

TOTAL 4238447 100,0% 420345362 100,0% 99,2

Brazil has between 90 and 100 million additional hectares for growing crops. 90% are in cerrado. Each region has its advantages and disadvantages, but all regions are usable:

- plains with sunlight and water but poor soil

- wet, deforested areas

- semiarid areas

Agriculture – Land Distribution

13

Cerrado (soybean, corn, cotton, sugarcane etc.)

Dry lands (castor bean)

Deforested areas (oil palm)

Grain Crops

PLANTED AREA PRODUCTION % PRODUCTIVITY

in 1000 ha in 000 ton kg/ha

SOYBEAN 21.249,1 57.759,1 42,1% 2.718

MAIZE 14.434,1 52.282,3 38,2% 3.622

RICE 2.874,9 12.177,1 8,9% 4.236

WHEAT 2.424,1 6.030,8 4,4% 2.488

BEANS 4.124,6 3.592,4 2,6% 871

BRAZIL 2008/09 - GRAIN CROPS

CROP

14

COTTON 854,5 1.975,0 1,4% *3.791

SORGHUM 878,1 1.967,1 1,4% 2.240

PEANUT 110,2 283,2 0,2% 2.570

OAT 108,4 239,5 0,2% 2.209

BARLEY 74,3 234,5 0,2% 3.156

TRITICALE 73,9 185,8 0,1% 2.514

SUNFLOWER 119,2 170,9 0,1% 1.434

CASTOR BEAN 163,9 130,9 0,1% 799

RYE 4,0 5,2 0,0% 1.300

TOTAL 47.493,3 137.033,8 100,0% - source: CONAB *cotton plum = 1.480 kg/ha

Coffee Production Evolution –1999/2008

15

Coffee Production by State

AREA PRODUCTION

in ha000 60 kg

bags

Minas Gerais 1.048.172 23.581

Espírito Santo 489.592 10.230

São Paulo 188.495 4.420

Paraná 96.920 2.608

STATE

2008 - COFFEE PRODUCTION BY STATE

16

Paraná 96.920 2.608

Bahia 125.033 2.141

Rondônia 155.972 1.876

Mato Grosso 15.007 138

Pará 12.917 233

Rio de Janeiro 13.562 266

Others 24.125 499

Total 2.169.795 45.992

source: MAPA

Sugar Cane, Sugar and Ethanol Production by State and Region - 2008

AREA

State in 000 ha TOTAL SHARE % 000 ton 000 liters

NORTH 20,6 1.348,6 0% 53,3 60.566,3

Amazonas 3,9 314,0 0,1% 16,5 8.648,0

Pará 11,0 749,6 0,1% 36,8 29.754,8

Tocantins 5,7 285,0 0,0% - 22.163,5

NORTHEAST 1.037,3 67.868,0 11,9% 4.957,6 2.218.251,6

Maranhão 38,9 2.385,0 0,4% 24,8 176.990,8

Piauí 13,1 900,9 0,2% 69,0 28.737,5

Ceará 1,6 111,5 0,0% - 7.803,7

Rio Grande do Norte 55,5 3.075,0 0,5% 255,2 79.182,4

Paraíba 112,5 6.117,0 1,1% 190,8 323.424,1

ETHANOLREGIONPRODUCTION in 000 ton

SUGAR CANESUGAR

IN 2008 THE SUGAR CANE CROPS GREW 653.700 HA:

54% EXPANDED OVER PASTURE LANDS (=0,2% OF

17

Paraíba 112,5 6.117,0 1,1% 190,8 323.424,1

Pernambuco 316,6 20.418,1 3,6% 1.710,1 567.504,6

Alagoas 426,8 29.864,3 5,2% 2.467,5 796.337,3

Sergipe 34,9 2.306,2 0,4% 118,4 106.050,9

Bahia 37,4 2.690,0 0,5% 121,8 132.220,3

CENTER-WEST 900,8 66.510,1 11,6% 2.615,7 3.825.539,1

Mato Grosso 223,2 16.109,9 2,8% 506,3 1.002.867,8

Mato Grosso do Sul 275,8 20.755,0 3,6% 1.006,1 1.064.044,2

Goiás 401,8 29.645,2 5,2% 1.103,3 1.758.627,1

SOUTHEAST 4.540,1 392.605,7 68,7% 22.079,3 18.577.538,9

Minas Gerais 600,7 44.120,0 7,7% 2.639,2 1.970.646,1

Espírito Santo 65,2 4.419,0 0,8% 109,7 281.517,1

Rio de Janeiro 50,0 3.556,3 0,6% 263,7 101.767,7

São Paulo 3.824,2 340.510,4 59,6% 19.066,7 16.223.608,0

SOUTH 511,4 43.038,3 7,5% 2.379,5 1.924.401,3

Paraná 509,3 42.918,3 7,5% 2.379,5 1.915.397,6

Rio Grande do Sul 2,1 120,0 0,0% - 9.003,7

NORTH / NORTHEAST 1.057,9 69.216,6 12,1% 5.010,9 2.278.817,9

CENTER-SOUTH 5.952,3 502.154,1 87,9% 27.074,5 24.327.479,3

BRAZIL 7.010,2 571.370,7 100,0% 32.085,4 26.606.297,2

Source:

CONAB

dec 08

OBS: ETHANOL

ANHYDROUS : 38%

HYDRATED: 62%

PASTURE LANDS (=0,2% OF THE TOTAL PASTURES)

22% OVER THE GRAIN AREAS (=0,4% OF THE GRAIN LAND)

Sugar & Ethanol Production

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

90/9

1

91/9

2

92/9

3

93/9

4

94/9

5

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

BRAZIL - 1991-2008 -

SUGAR CANE PRODUCTION EVOLUTION - in 000 ton

BRAZIL - 1991-2008 - SUGAR (in 000 ton) AND

ETHANOL PRODUCTION (in million l)

EVOLUTION

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

90

/91

91

/92

92

/93

93

/94

94

/95

95

/96

96

/97

97

/98

98

/99

99

/00

00

/01

01

/02

02

/03

03

/04

04

/05

05

/06

06

/07

07

/08

18

90/9

1

91/9

2

92/9

3

93/9

4

94/9

5

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

90

/91

91

/92

92

/93

93

/94

94

/95

95

/96

96

/97

97

/98

98

/99

99

/00

00

/01

01

/02

02

/03

03

/04

04

/05

05

/06

06

/07

07

/08

SUGAR - in 000 ton ETHANOL - in million liters

YEAR QUANTITY US$ FOBAVERAGE

PRICEQUANTITY US$ FOB

AVERAGE

PRICE

000 t US$ mi US$/t million liters US$ mi US$/m³

2000 6.506,4 1.199,1 184,30 227,3 34,8 153,07

2001 11.169,8 2.277,5 203,90 345,7 92,1 266,57

2002 15.245,9 2.093,6 137,32 789,2 169,2 214,35

2003 12.914,5 2.140,0 165,71 757,4 158,0 208,57

2004 15.764,1 2.640,2 167,48 2.408,3 497,7 206,68

2005 18.160,3 3.918,8 215,79 2.600,6 765,5 294,36

2006 18.870,3 6.167,0 326,81 3.416,6 1.604,7 469,69

2007 19.364,5 5.100,4 263,39 3.530,1 1.477,6 418,58

2008 19.472,5 5.483,0 281,58 5.118,7 2.390,1 140,23source:UNICA

SUGAR ETHANOL

Livestock & Poultry Production

1975 1980 1985 1995 2006

Poultry 286.810 413.180 436.809 718.538 1.244.261

Cattle 101.674 118.086 128.042 153.058 169.900

Swine 35.152 32.629 30.481 27.811 31.949

Sheeps 17.487 17.951 16.148 13.955 13.857Goats 6.709 7.908 8.208 6.591 7.109

1975/2005 - LIVESTOCK & POULTRY PRODUCTION EVOLUTION - in 000 animals -

19

0

500.000

1.000.000

1.500.000

1975 1980 1985 1995 2006

BRAZIL - 1975/2005 - LIVESTOCK &

POULTRY PRODUCTION EVOLUTION

- in 000 animals -

Goats

Sheep

Swine

Cattle

Poultry

source: IBGE


COMMERCIAL TRADE

Commercial Balance

COMMERCIAL BALANCE - 2007/ 2008

1000

1500

2000

2500

3000

3500

4000

4500

THE BRAZILIAN BASIC SECTOR REPRESENTS

37% OF THE BRAZILIAN EXPORTS

DESCRIPTION 2002 2003 2004 2005 2006 2007 2008 % 2008

EXPORTS 60.362 73.084 96.475 118.308 137.807 160.649 197.942 100%

BASIC 16.952 21.179 28.518 34.721 40.285 51.596 73.028 37%INDUSTRIALIZED 41.965 50.597 66.379 81.105 94.541 105.743 119.755 61%

SEMIMANUFACTURED 8.964 10.943 13.431 15.961 19.523 21.800 27.073 14% MANUFACTURED 33.001 39.654 52.948 65.144 75.018 83.943 92.682 47%SPECIAL OPERATIONS 1.445 1.308 1.578 2.482 2.981 3.310 5.159 3%

IMPORTS 47.240 48.305 62.835 73.606 91.351 120.617 173.207 100%

RAW MATERIALS AND INTERM. GOODS 23.448 25.837 33.526 37.804 45.275 59.405 83.295 48%

BRAZIL 2002-2008 - COMMERCIAL BALANCE EVOLUTION - in million US$

21

BRAZIL - EXPORTS - 2007/ 2008

0

5000

10000

15000

20000

25000

JAN FEV M AR ABR M AI JUN JUL AGO SET OUT NOV DEZ

2007 2008

BRAZIL - IMPORTS - 2007/ 2008

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000


2007 2008

0

500

1000


2007 2008

CONSUMER GOODS 5.909 5.539 6.863 8.484 11.955 16.024 22.519 13%FUELS AND LUBRICANTS 6.240 6.579 10.302 11.931 15.197 20.068 31.466 18%CAPITAL GOODS 11.643 10.350 12.144 15.387 18.924 25.120 35.927 21%

BALANCE 13.122 24.779 33.640 44.702 46.456 40.032 24.735

source: SECEX

Source:

MDIC

Exports

96.677

118.529

137.807

160.649

197.942

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

BRAZIL - 1990/2008 - EXPORTS EVOLUTION

- in US$ million FOB -

0%

20%

40%

60%

80%

100%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

BRAZIL - 1990/2008 - EXPORTS EVOLUTION -

SHARE BY AGGREGATED FACTOR

22

0

20.000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

COMMODITIES SEMI-MANUFACTURED MANUFACTURED OTHERS

Source: MDIC

BRAZIL - 2008 - EXPORTS BY

AGGREGATED FACTOR - in US$ million FOB

73.028; 37%

27.073; 14%

92.683; 46%

5.159; 3%

COMMODITIES SEMI-MANUFACTURED MANUFACTURED OTHERS

Main brazilian exports in decreasing order – in US$ FOB

PRODUCTS US$ FOB %

Iron ore and concentrates 16.538.542.577 8,4

Crude oil 13.555.608.149 6,9

Soybean wether or not broken 10.952.196.541 5,5

Poultry meat, fresh or frozen 5.821.977.431 2,9

Airplanes 5.495.247.707 2,8

Vehicles 4.915.736.805 2,5

Soybean meal and residues 4.363.523.095 2,2

Raw coffee beans 4.131.465.443 2,1

Beef meat, fresh or frozen 4.006.139.123 2,0

Semimanufactured goods of iron and steel 4.001.545.449 2,0

Chemicals wood paste 3.901.135.733 2,0

2008 - MAIN BRAZILIAN EXPORTS IN DECREASING ORDER

In green : main

23

Chemicals wood paste 3.901.135.733 2,0

Raw sugar cane 3.649.552.937 1,8

Vehicles and tractors pieces and parts 3.510.094.987 1,8

Raw molten iron and "spiegel" iron 3.144.985.399 1,6

Fuel oil 2.964.490.648 1,5

Tobacco leaves and waste 2.683.203.506 1,4

Transmitter and receptor units and components 2.549.968.693 1,3

Ethyl alcohol 2.390.109.630 1,2

Iron-alloys 2.306.534.863 1,2

Commercial vehicle 2.175.963.333 1,1

Motors, generator and electrical transformer, and parts 2.166.618.500 1,1

Soybean oil 1.984.503.163 1,0

Tractors 1.956.122.904 1,0

Iron or steel rod products 1.920.689.379 1,0

Shoes, their parts and components 1.881.308.351 1,0

Hides and skins, shaved, except raw 1.867.358.826 0,9

Refined sugar 1.833.411.751 0,9

Machines for earthmoving, drilling 1.737.799.099 0,9

source: MDIC - dec08

In green : main agricultural exports


TRANSPORTS

ArgentinaUSABrazil

Brazil is huge, rich in water and sunlight, but ...

...soil, especially the cerrado, needs acidity correction and lots of fertilizers.

Logistiscs is also not favorable as compared to Argentina and the United States.

Transport Costs

25

ArgentinaUSABrazil

353045Total

181217Ocean Freight to Rotterdam

336Port Cost

141522Inland Freight - Port

Load Transport Distribution

BRAZIL - 2006 - LOAD TRANSPORT DISTRIBUTION

13,0%0,4%3,6%

26source: BNDES

58,0%25,0%

Roadway Railway Waterway Pipeline Airway

Transports Net

CAPITALS

INTL. AIRPORTS

27Source; IBGE

PORTS

FEDERAL HIGHWAYS

RAILWAYS

Roadways

28

PAVED

UNPAVED

PROJECT

Roads – Paved / Unpaved Roads Distribution by State - 2006

88% of the brazilian

NORTH 102.493 14.928 15% 87.565 85%

Rondônia 15.481 1.622 10% 13.859 90%

Acre 7.456 916 12% 6.540 88%

Amazonas 6.278 1.640 26% 4.638 74%

Roraima 7.169 1.117 16% 6.053 84%

Pará 35.368 4.177 12% 31.191 88%

Amapá 2.290 323 14% 1.967 86%

Tocantins 28.450 5.132 18% 23.318 82%

NORTHEAST 409.509 53.037 13% 356.472 87%

Maranhão 55.441 6.962 13% 48.479 87%

Piauí 57.583 4.562 8% 53.021 92%

Ceará 51.730 8.279 16% 43.452 84%

%REGION and State PAVED UNPAVEDROADWAYS

TOTAL%

29source: DNIT

brazilian roads have

no pavement

Rio Grande do Norte 27.569 4.602 17% 22.967 83%

Paraíba 35.532 3.753 11% 31.780 89%

Pernambuco 42.385 6.293 15% 36.092 85%

Alagoas 13.062 2.302 18% 10.759 82%

Sergipe 5.331 2.055 39% 3.276 61%

Bahia 120.876 14.230 12% 106.646 88%

SOUTHEAST 523.959 63.544 12% 460.415 88%

Minas Gerais 272.060 22.906 8% 249.155 92%

Espírito Santo 30.433 3.321 11% 27.112 89%

Rio de Janeiro 22.581 6.086 27% 16.495 73%

São Paulo 198.884 31.230 16% 167.654 84%

SOUTH 336.633 40.544 12% 296.089 88%

Paraná 120.298 21.173 18% 99.126 82%

Santa Catarina 62.817 7.037 11% 55.779 89%

Rio Grande do Sul 153.518 12.334 8% 141.184 92%

CENTER-WEST 230.537 24.226 11% 206.311 89%

Mato Grosso do Sul 86.721 6.041 7% 80.679 93%

Mato Grosso 54.164 5.713 11% 48.452 89%

Goiás 87.908 11.595 13% 76.313 87%

Distrito Federal 1.744 877 50% 867 50%

TOTAL 1.603.131 196.279 12% 1.406.852 88%

Railways and their Administration

30

Railways - Transported Load and Gauge Information

América Latina Logística do Brasil ALL 28.942 18.150

Companhia Ferroviária do Nordeste CFN 1.519 678

Estrada de Ferro Carajás EFC 92.587 76.683

Estrada de Ferro Vitória a Minas EFVM 131.620 73.442

Ferrovia Centro-Atlântica S.A. FCA 15.177 9.143

Ferrovia Novoeste S.A. NOVOESTE 3.355 1.430

TON

103

TON-KM

106

BRAZIL 2006 - RAILWAYS - TRANSPORTED LOAD

RAILWAY ACRONYM

2006

ACRONYM KM

ALL 7.225

7.214

11

CFN 4.238

4.220

18

EFC 892

892

FNS 362

362

EFVM 905

905

FCA 8.093

7.885

208

BRAZIL - 2006 - RAILWAYS

EXTENSION OF THE RAILWAYS BY GAUGE

1,00 / 1,60 m

1,00 m

Ferrovia Centro-Atlântica S.A.

1,00 m

1,60 m

Ferrovia Norte-Sul

1,60 m

Estrada de Ferro Vitória a Minas

Companhia Ferroviária do Nordeste S.A.

1,00 m

1,00 / 1,60 m

Estrada de Ferro Carajás

COMPANY AND GAUGE

América Latina Logística do Brasil

1,00 m

1,00 / 1,44 m

31

Ferrovia Novoeste S.A. NOVOESTE 3.355 1.430

Ferrovia Paraná FERROPAR 1.511 1.005

Ferrovia Tereza Cristina S.A. FTC 2.627 183

Ferrovias Bandeirantes S.A. FERROBAN 4.221 2.231

Ferrovias Norte do Brasil FERRONORTE 5.551 7.446

MRS Logística S.A. MRS 101.998 47.662

389.109 238.054TOTAL

Source: ANTT.

208

NOVOESTE 1.942

1.942

-

FERROPAR 248

248

FTC 164

164

FERROBAN 2.029

241

1.513

275

FERRONORTE 504

-

504

MRS 1.674

1.632

42

29.013

23.131

17

11

543

5.3101,60 m

Fontes: ANTT, CBTU, CENTRAL, CPTM, TRENSURB, EFCJ, EFMRN e

1,00 m

1,10 m

1,00 / 1,44 m

1,00 / 1,60 m

TOTAL

1,60 m

1,00 / 1,60 m

Ferrovias Norte do Brasil

1,00 m

1,60 m

MRS Logística S.A.

Ferrovias Bandeirantes S.A.

1,00 m

1,60 m

1,00 / 1,60 m

Ferrovia Paraná

1,00 m

Ferrovia Tereza Cristina S.A.

1,00 m

1,00 / 1,60 m

Ferrovia Novoeste S.A.

1,00 m

1,60 m

80% of the brazilian railway net has 1,0 m

gauge

Main Waterways and their Administrations

32


MECHANIZATION LEVEL

Agriculture Mechanization Level

BRAZIL - 1960/2007 - WHEEL TRACTOR FLEET & MECHANIZATION LEVEL

100.000

200.000

300.000

400.000

500.000

600.000

un

its

50

100

150

200

250

300

350

400

450

ha/w

heel

tracto

r

34

YEAR

WHEEL

TRACTOR - in

un

CULTIVATED

AREA - in ha

MECHANIZATION

LEVEL - ha/wheel

tractor

1960 62.684 25.672 410

1965 76.691 31.637 413

1970 97.160 34.912 359

1975 273.852 41.811 153

1980 480.340 47.641 99

1985 551.036 49.529 90

1990 515.815 47.666 92

1995 481.316 50.022 104

2000 450.000 53.300 118

2005 354.722 59.339 167

2007 361.453 57.882 160

sources: ANFAVEA - IBGE

WHEEL TRACTOR FLEET

BRAZIL - 1960/2007

-

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2007

-

WHEEL TRACTOR - in un MECHANIZATION LEVEL - ha/wheel tractor

Vehicles & Agricultural Machinery Commercial Balance – in US$ mi

IMPORTS EXPORTS IMPORTS EXPORTS IMPORTS EXPORTS ANNUAL

1975 302 334 99 17 401 351 (50)

BRAZIL - 1975/2008 - VEHICLES

COMMERCIAL BALANCE EVOLUTION - in US$ million

YEARVEHICLES

AGRICULTURAL

MACHINERYTOTAL BALANCE

35

1980 524 1.101 72 120 596 1.221 625

1985 436 1.604 97 269 533 1.873 1.340

1990 733 1.897 200 512 933 2.409 1.476

1995 4.795 2.415 279 449 5.074 2.864 (2.210)

2000 3.764 3.488 451 465 4.215 3.953 (262)

2005 5.257 9.391 934 2.051 6.191 11.442 5.251

2007 8.433 10.884 1.637 2.577 10.070 13.461 3.391

source: ANFAVEA

Agricultural Machinery Production & Sales

TILLERSWHEEL

TRACTORSCOMBINES TILLERS

WHEEL

TRACTORSCOMBINES TILLERS

WHEEL

TRACTORSCOMBINES

2000 - 300 152 90 3.455 683 722 24.591 3.780

2001 - 113 44 74 5.814 1.202 856 28.203 4.098

2002 - 31 32 46 7.945 1.199 1.050 33.217 5.648

EXPORTS - in units -

YEAR

DOMESTIC SALES - in units -

BRAZIL - 2000/2007 AGRICULTURAL MACHINERY- IMPORTS, EXPORTS & DOMESTIC SALES

IMPORTS - in units -

36

2003 - 71 6 6 16.589 3.232 1.585 29.476 5.440

2004 - 167 7 23 23.553 4.533 1.682 28.803 5.605

2005 - 186 1 34 23.968 3.001 2.141 17.729 1.534

2006 - 294 - 46 16.532 1.867 1.857 20.435 1.0302007 - 609 30 129 20.068 2.783 1.548 31.300 2.377

source: ANFAVEA

Agricultural Machinery Market

27.546

4.296813

34.781

5.196947

40.352

6.8511.079

47.109

9.195

1.597

52.768

10.433

1.703

40.871

4.2292.183

35.586

2.3141.940

50.719

5.1481.722

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

2000 2001 2002 2003 2004 2005 2006 2007

BRAZIL - 2000/2007 - AGRICULTURAL MACHINERY

PRODUCTION - in unitsNo-tilling system in the world:

2006

Argentina : 74% - 18,2 million ha

Brazil : 53% - 25.5 million ha

Canada : 31,8% - 12.5 million ha

USA : 19% - 25.3 million ha

Australia : 20.5% - 9.0 million ha

37

AGRICULTURAL PRODUCTION INTERNAL EXPORTS

MACHINERY in units SALES - in un in un

Wheel tractors - total 66.504 41.966 23.005

up to 49 CV 1.229 1.123 23

from 50 CV to 99 CV 33.850 23.107 10.534

from 100 CV to 199 CV 30.433 17.082 12.112

above 200 CV 992 654 336

Tillers 1.751 1.852 13

Combines 8.407 4.340 3.567

Total 76.662 48.158 26.585 source: ANFAVEA

BRAZIL - 2008 - AGRICULTURAL MACHINERY MARKET

Obs: In 2008, AGCO, New Holland and John Deere imported 1.448 wheel

tractors and 118 combines.

2000 2001 2002 2003 2004 2005 2006 2007

WHEEL TRACTORS COMBINES TILLERS

Australia : 20.5% - 9.0 million ha

Agricultural Credit Distribution

TOTAL SHARE TOTAL SHARE TOTAL SHARE

1990 8.249 77,5% 741 7,0% 1.651 15,5% 10.641

1991 9.361 84,2% 639 5,7% 1.114 10,0% 11.114

1992 7.901 63,5% 1.219 9,8% 3.323 26,7% 12.443

1993 5.869 57,9% 1.656 16,3% 2.615 25,8% 10.140

1994 10.141 59,1% 3.598 21,0% 3.428 20,0% 17.167

1995 4.447 66,3% 912 13,6% 1.344 20,1% 6.703

1996 4.626 81,1% 663 11,6% 415 7,3% 5.704

1997 6.152 76,4% 951 11,8% 945 11,7% 8.048

1998 6.538 74,7% 939 10,7% 1.271 14,5% 8.748

1999 6.354 73,0% 1.002 11,5% 1.345 15,5% 8.701

2000 6.068 68,2% 1.021 11,5% 1.802 20,3% 8.891

TOTAL

BRAZIL - 1990/2006 - AGRICULTURAL CREDIT BY CATEGORY

in US$ millionCOSTS INVESTMENT SALES

YEAR BRAZIL - 2006 - AGRICULTURAL CREDIT

BY INVESTMENT DISTRIBUTION

61%23%

16% 0%

0%0%

OTHER

TRACTORS

COMBINES

TRUCKS

VANS, JEEPS & ALIKE

TILLERS

38

2000 6.068 68,2% 1.021 11,5% 1.802 20,3% 8.891

2001 6.349 63,4% 1.330 13,3% 2.340 23,4% 10.019

2002 7.285 64,1% 1.789 15,7% 2.292 20,2% 11.366

2003 8.555 64,6% 2.404 18,2% 2.286 17,3% 13.245

2004 9.821 61,7% 2.810 17,6% 3.296 20,7% 15.927

2005 9.075 61,8% 2.413 16,4% 3.186 21,7% 14.674

2006 8.832 60,7% 2.527 17,4% 3.187 21,9% 14.546

source: ANFAVEA / BACEN

TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE

2000 250.576 24,5% 178.114 17,5% 815 0,1% 7.106 0,7% 2.116 0,2% 581.964 57,0% 1.020.691

2001 271.028 20,4% 209.375 15,7% 1.132 0,1% 10.356 0,8% 2.718 0,2% 835.734 62,8% 1.330.343

2002 347.904 19,5% 237.287 13,3% 3.225 0,2% 24.823 1,4% 7.303 0,4% 1.167.969 65,3% 1.788.511

2003 578.189 24,0% 449.228 18,7% 6.360 0,3% 10.904 0,5% 4.013 0,2% 1.355.739 56,4% 2.404.433

2004 625.837 22,3% 607.001 21,6% 6.356 0,2% 7.326 0,3% 3.022 0,1% 1.560.640 55,5% 2.810.182

2005 574.754 23,8% 450.262 18,7% 8.657 0,4% 11.067 0,5% 1.943 0,1% 1.365.949 56,6% 2.412.632

2006 592.102 23,4% 409.530 16,2% 2.758 0,1% 8.777 0,3% 3.196 0,1% 1.510.411 59,8% 2.526.774

source: ANFAVEA / BACEN

TRACTORS OTHER TOTALYEAR

BRAZIL - 200/2006 - AGRICULTURAL CREDIT BY INVESTMENT DISTRIBUTION

- in US$ 000 -

COMBINES TILLERS TRUCKS

VANS, JEEPS &

ALIKE


BIO-ENERGY

Brazil's success in poultry exports is the result of the synergy

between the animal protein and grain industries (soybean, corn etc.)

Lev

el o

f U

tili

zati

on

The use of sugarcane energy

is expected to develop exponentially“Bioenergy “Bioenergy

Hub”Hub”

4017th century 19th century 20th century 21st century

En

erg

y-L

evel

of

Uti

liza

tio

n

Sugar mill

MillMillMillMill

Sugar/Alcohol complex

p

Vehicles Production by type of fuel

BRAZIL 2008 - VEHICLES PRODUCTION

BY TYPE OF FUEL - in units

3.627 un

0%

326.642 un

10%

640.486 un

20%

2.256.257 un

70%

FLEX FUEL

PETROL

DIESEL

ETHANOL

BRAZIL 2008 - VEHICLES PRODUCTION

BY TYPE - in units

Total production: 3.227.012 un

44.111 un

1%

167.330 un

5%

448.247un

14%

2.567.324 un

80%

VEHICLES

LIGHT COMM. VEH

TRUCKS

BUSES

41

80%

Source: ANFAVEA

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

BRAZIL 1970/2007 - VEHICLES PRODUCTION

BY TYPE OF FUEL - in units

FLEX-FUEL

ETHANOL

PETROL

World trade is a game of trade offs...

An effective strategy to win this game will be the production of biofuels.

Sugarcane and oilseeds will be unbeatable if both play doubles.

Bio-energy

42

Oilseeds

Diesel

?

Sugar/alcohol

Sugar cane productionProductivity

Production Productivity

Plantada area Área colhida (milllion ton) (Ton / ha)

1975 1,9 1,9 88,2 46,82

1976 2,08 2,08 102,77 49,43

1977 2,27 2,27 120,01 52,93

1978 2,39 2,39 129,06 54,04

1979 2,54 2,54 139,27 54,79

1980 2,61 2,61 146,23 56,09

1981 2,8 2,8 153,78 54,86

1982 3,08 3,08 186,38 60,47

1983 3,48 3,48 216,45 62,16

1984 3,85 3,85 241,39 62,55

1985 3,9 3,9 246,54 63,22

1986 3,95 3,95 238,49 60,44

1987 4,35 4,31 268,58 62,31

1988 4,15 4,12 258,45 62,78

Ano

Area (million hectares)

In 30 years, the productivity

increased 65%.

BRAZIL 1997/2007 - SUGAR CANE - AREA AND PRODUCTIVITY

43

1988 4,15 4,12 258,45 62,78

1989 4,01 4,07 252,29 62,02

1990 4,29 4,27 262,6 61,49

1991 4,24 4,21 260,84 61,94

1992 4,2 4,2 271,43 64,61

1993 3,97 3,86 244,3 63,24

1994 4,36 4,34 292,07 67,23

1995 4,62 4,57 303,56 66,49

1996 4,9 4,83 325,93 67,52

1997 4,95 4,86 337,2 69,1

1998 5 4,97 338,97 68,18

1999 4,86 4,85 331,71 68,41

2000 4,82 4,82 325,33 67,51

2001 5,02 4,96 344,28 69,44

2002 5,21 5,1 363,72 71,31

2003 5,38 5,37 389,85 72,58

2004 5,57 5,63 416,26 73,88

2005 5,62 5,76 419,56 72,83

2006 7,04 6,19 457,98 74,05

2007 7,85 6,71 514,08 76,6

BRAZIL 1997/2007 - SUGAR CANE - AREA AND PRODUCTIVITY

0

1

2

3

4

5

6

7

8

9

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

AR

EA

(in

mil

lio

n h

a)

0

10

20

30

40

50

60

70

80

90

PR

OD

UC

TIV

ITY

(in

to

n/h

a)

Area Productivity

Grain Crops Production & Productivity Evolution – 1990/2008

BRAZILIAN AGRICULTURE - 1990/2008 - AREA & PRODUCTIVITY EVOLUTION

30.000

40.000

50.000

60.000

AR

EA

- i

n 0

00 h

a

1.500

2.000

2.500

3.000

3.500

PR

OD

UC

TIV

ITY

- i

n t

on

/ha

44

0

10.000

20.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

AR

EA

- i

n 0

00 h

a

0

500

1.000

1.500

PR

OD

UC

TIV

ITY

- i

n t

on

/ha

AREA PRODUCTIVITY

PRODUCTION : + 136%

AREA : + 25%

Advantages and Disadvantages of the Brazilian Agriculture

Advantages :• Great land reserves for agriculture• Low land price• Favorable climate• Good administration capacities• Low salaries• Tropical technology for agriculture

45

• Tropical technology for agriculture• Bio-energy potential• Huge amounts• Great demand from worldwide markets• Great internal market• Supported by the Brazilian politicsDisadvantages :• Bad transports infrastructure and logistics• Capital high cost (high interests)

Politics supports

“As the Brazilian agriculture is competitive, new chances and opportunities appear :

�general development,

46

�more jobs and more incomes,

�more agriculture products and derivatives,

�more exports,

�more energy.”

Sources

• MAPA : Ministério da Agricultura, Pecuária e Abastecimento• MDIC : Ministério do Desenvolvimento, Indústria e Comércio

Exterior• IBGE : Instituto Brasileiro de Geografia e Estatística• DIEESE : Departamento Intersindical de Estatística e Estudos

Socioeconômicos• ANFAVEA : Associação Nacional dos Fabricantes de Veículos

Automotores

47

Automotores• CONAB : Companhia Nacional do Abastecimento• BACEN : Banco Central do Brasil• UNICA : União da Indústria da Cana-de-Açúcar• DNIT : Departamento Nacional de Infra-Estrutura de Transporte• SECEX : Secretaria de Comércio Exterior do Ministério do

Desenvolvimento, Indústria e Comércio Exterior• WORLDBANK : The World Bank• FAO : Food and Agriculture Organiation of the United States

48

THANK YOU

VIELEN DANK


APPENDIX

RELIEFElevation & Slope

50source: FAO

The highest mountain, Pico da Neblina, has 2.994 m

CLIMATETemperature & Precipitation

51source: FAO

Major Environmental Constraints

52source: FAO

Farming Systems

53source: FAO

the brazilian agriculture an overview by dr …€™s agricultural products position in the world...

Documents