the changing role of standards for agricultural equipment ... · the changing role of standards for...

The Changing Role of Standards for Agricultural

Equipment in Brazil

Daniel Zacher – Manager, Regulatory Affairs LATAM (Nov/2013)

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Agenda

• Agriculture in Brazil

• Equipment Manufacturers

• Standard Development Work in Brazil

• ABNT/CB-203 (mirror committee of ISO/TC 23)

24th Annual Meeting of the Club of Bologna

2

|

Brazil is among the top economies and has being growing

year over year with controlled inflation

3 24th Annual Meeting of the Club of Bologna

GDP Ranking 2012- trillion USD

2,0

2,3

2,4

2,6

3,4

6,0

8,4

15,7

RussianFederation

Brazil

UnitedKingdom

France

Germany

Japan

China

UnitedStates

4 6,1 5,2

-0,3

7,5

2,7 0,9

2,4 2,3

06 07 08 09 10 11 12 13 14

87

180 194 239

289 352 373 376 378

06 07 08 09 10 11 12 13 14

GDP %

International Reserves bn USD

3,1 4,5

5,7 4,9 5,0

6,6 5,4

6,2 5,9

06 07 08 09 10 11 12 13 14

Inflation %

3

World Bank LatinFocus Consensus

|

Agribusiness became important for the Brazilian economy

and trade balance…


38 43 50

60 55 63

77 80

05 06 07 08 09 10 11 12

Agribusiness Trade Balance bn

US$

Others 62%

Agro 37%

Brazilian Export 2012

246 bn US$

Others 78%

Agribusiness 22%

Brazilian GDP 2010: 2.09 Tn USD

Source: MDIC/Secex

|

… and Brazil has an important position as a global

commodity supplier

5

Production Export Export Ranking


|

Agricultural trade balance deficits and surpluses

(billion US$, WTO data)


1990 -47

Source: MBAgro

31

72

43

2011

-72 -28

-84 -80

-21

32

25

|

The mechanization of agriculture has increased in the 70

and 80, as the tractor industry developed in Brazil

7

Source: MBAgro


|

European farmers arrived in southern Brazil and began

producing agriculture with European and American

techniques

8

Until 1947 1947

1953 1958

Source: MBAgro


|

The consequence of mechanization in traditional tropical

conditions was the loss of soil by erosion

9

Source: MBAgro


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The solution was the development of no tillage technique,

which allowed two crops the same year and greatly

reduces the time to prepare the soil.

10

No tillage system

2 crops in 1 year

Source: MBAgro


|

Drivers of future sustainable growth in the Ag machinery

industry

• Global population growth and urbanization;

• Income growth and changes in consumption patterns in

developing countries;

• Biofuels;

• Brazilian natural resources;

• Local farmers with more diversified business, access to

information, and technology

• Government support for credit and knowledge transfer


|

Brazil’s natural resources as....

12

Water

Global accumulated temperatures

(Average temp > 0 C)

Land “Sunlight”

Source: MBAgro


|

The new production system is evolving toward an

integration of livestock, forestry and agriculture


|

Increased farm revenue and government support

in billion reais

14

186

157 157

179

205

195 201

233

248

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

27

39 44

50

58

65

93

100

107

115

136

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Value of Agricultural Production

Agriculture and Livestock Plan

Source: MAPA-Agriculture and Livestock Ministry and Deere projection


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STANDARDS DEVELOPMENT PLANNING

Equipment

Manufacturers

(Brazil)

|

Equipment Manufacturers (Brazil)

16

46,10%

18,60%

30,60%

4,70%

Tractors & Combines Vol (2012)

Rio Grande do Sul Paraná São Paulo Others

Rio Grande do Sul State

John Deere (2 Factories)

AGCO (3 Factories)

Agrale (Factory)

Tramontini (Factory)

Mahindra (Factory)

Paraná State

CNH – New Holland (Factory)

São Paulo State

CNH – Case (Factory)

AGCO – Valtra (Factory)

Agritech (Factory)

Jacto (Factory)


Source: Anfavea

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Delears Network / New comers (Brazil, 2012)

17

1979

JD Buy 20%

of SLC in

Brazil.

1983

JD Combines

production

Horizontina

1984

JD Planters

production

Horizontina

1999

JD SCH

Production

Catalão. Case

IH integrate

CNH.

2001

JD

Incorporation

of global

brand in BR

2004

JD Tractor

footprint

Montenegro

2008

JD Parts

Distribution

Center

Campinas

2010

Valtra

completes 50

years in BR

2011

Massey

completes 50

years in BR.

AGCO buys 60%

of GSI.

2012

AGCO

buys

Santal

1975

NH

in BR

2013: New comers are currently building facilities in BR. E.g..: LS Mtron (South Korea) and Mahindra (India).


Source: Anfavea

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Investments in local production and diversified portfolio

0

4

8

12

16

20

2006 2008 2010 2012

<100 HP 100-200HP > 200 HP

Number of tractor models available in John Deere Montenegro factory


|

Tractor Industry in Brazil

19

0

10.000

20.000

30.000

40.000

50.000

60.000

70.00062

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

12

Industry Volumes -all Tractors 5-year Avg 10-year Avg 15-year Avg

Beginning of mechanization

Hyper-inflation

“the lost decade”

Stabilized economy

Chinese demand

Low interest rate credit

Ethanol

Source: Anfavea


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GOVERNMENT SUBSIDIES PROGRAMS

Standard Development Work

(Brazil)

|

Creation of ABNT Ag Machinery Committee

ABNT’s managing board approved the proposal to create the Committee for Agricultural Machinery in May/2013. It calls: ABNT/CB-203

Result of the agreement with two major trade associations - ABIMAQ and

ANFAVEA - and two current Brazilian committees – CB-05 Automotive and

CB-04 Mechanical Machines.


• ABNT was founded in 1940

• Founding member of ISO,

COPANT (Pan American

Technical Standard

Commission) and AMN (

MERCOSUR Standardization

Association)

• ABNT has being the official

representative of these entities

in addition to IEC - International

Electrotechnical Comission

|

Key reasons to promote a local TC

Support the intense regulatory work in progress

Safety Regulation (NR12, NR31.12)

Emissions and Noise Regulation (Resolution CONAMA 433/2011)

Transit on Public Roads (Res. CONTRAN 429/2012)

Occupational Noise and Vibration (NR15)

Improve technology, quality and safety of products market in Brazil

Global interconnection & alignment

Make easier international market access

Product Liability

Support future test and certification

Regional Standardization

…

22

0

50

100

150

200

250

300

TC 127 TC 23

ISO - WW ABNT - Brazil

Std Production World vs Brazil


|

ABNT/CB-203 start-up structure:


CB 203’s Chairman

Chief of Secretariat

Secretary

CE-203:04:01 Ag Tractors

CE-203:13:01 Powered lawn and

garden equipment / Manually portable

machinery

CE-203:06:01 Equipment for crop

protection

CE 203:19:01 Agricultural Electronics

CE 203:19:02 RF Electronic Identification

Quality of SC

Finance

International Affairs

Communication / Events

|

ABNT/CB-203 planning:

24

ABNT

Tractors

Sprayers

Ag Electronics

Lawn Eq + Manual Forestry Eq

ISO Tractor (SC4) + Common Test (SC2)

Equipment for crop protection (SC6)

Agricultural electronics (SC19)

Powered lawn and garden equipment (SC13) + Manually portable forest machinery (SC17)

ABNT

Safety&Conformt + Op Controls

Harvesting

Forestry

Irigation

ISO Safety and comfort (SC3)+ Operator controls, operator symbols and other displays, operator manuals (SC14)

Equipment for harvesting and conservation (SC7)

Machinery for forestry (SC15)

Irrigation and drainage equipment and systems (SC18)


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ABNT/CB-203

25

• Meetings will be at ABIMAQ in São Paulo. ABIMAQ has a long term tradition with Standards Development Work for machines.

• Promoting sinergy between SC, meeting will be in the same week:


Mon Tue Wed Thu Fri

9h – 12h SC Ag Electronics

SC Safety and comfort +

Operator controls, operator symbols

and other displays, operator manuals

SC Equipment for harvesting and conservation

CE – Garden Equipment /

Manual Forestry Equipment

Open

14h – 17h

SC Ag

Electronics

SC Ag Tractors +

Common Test

SC Equipment for crop protection

Open

Open

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ABNT/CB-203 stakeholders:

26

• Ag Machinery Industry: AGCO, Agroleite, Baldan, CASE IH, Guarany, Inroda, Jacto, John Deere, Montana, New Holland, Pinhalense, Stihl, Trapp, among others

• Educational Institutions: Esalq/USP, URSM, UFRGS, Unesp, Unicamp, UFPR and others

• Government Agencies and Research Institutions: Embrapa, Agronomy Institute, Ministry of Agriculture, Livestock and Supply, Ministry of Agrarian Development, Ministry of Science and Technology, ABDI, Fundacentro, among others

• Professional and trade associations and unions: CNA, CNI, ANFAVEA, ABIMAQ, SIMERS, CREA, SBEA, among others


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Closing Remarks


“Coming together is a beginning; keeping together is progress; working together is success.”

Henry Ford

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Major Accomplishments

29

Brazil Emissions Regulations Proposal approval (Industry’s Working Group lead)

Normative Instruction proposal draft.

Publication of new NR12 and New NR31 (Industry’s Working Group lead)

Negotiation reopened for exclusion of Harvesting Equipments

Industry’s review on Registration and Licensing Regulations Proposal and

Normative Instruction

ABIMAQ’s agreement to create TC23 in Brazil

Exclusion of Ag and Construction Machinery from the Conformity Assessment

Requirements

2011 Product Safety & Compliance Conference

Regulatory Outlook (Brazil)

|

NR12 – Safety in machinery and equipment work (manufacturer scope)

30

− Two negotiation rounds with Government (May/2012 and March/2013);

− From an initial negotiation agenda of 9 items, 7 already agreed with Ministry of Labor

− Pending: 1) allow guards with a tool to be opened and 2) Licensed Engineer information on Product Label

−By end of Year publication of this new version

−Will follow NR12 changes

NR31.12 – Safety in agricultural machinery and equipment work (final users scope)


|

Registration & Licensing (Traffic in Public Roads)

31

• Resolution CONTRAN 429/2012 published in Nov 2012. It requires for transit in public roads:

− Product Homologation with Transit Authority (DENATRAN)

− Product identification per ISO 10261 (17-digit PIN)

− EDI between manufacturers/importers to DENATRAN (Product ID)

−Additional safety features (Resolution CONTRAN 14/98 revised):

o Back-up light (new)

o Back-up alarm (new)

o Rear mirrors (new)

o Retro-reflective band (new)

o License Plate light (new)

o License Plate bracket (new)

o Seat belt (new)

o Horn (new)

o Hazard light (new)

Current safety devices

o Front light (current)

o Rear light (current)

o Brake light (current)

o Direction light (current)

o Muffler (current)

o Tires in good condition (current)


|

Emissions Regulation Off-Highway Machinery

32

• CONAMA Resolution 433 published in 2011

• Scope: new products, local and imported (noise and engine emissions)

• ISO 8178 and ISO 6395 already adopted in Brazil

• Harmonization with Tier 3 or Stage III A. Emissions Schedule:

o 2015: Earth-Moving Machines: only newly introduced models

o 2017: Earth-Moving Machines: 100% of the models

o 2017: Ag and Forestry Machines: engine power >= 75kW (100hp)

o 2019: Ag and Forestry Machines: engine power >= 19kW

• Normative Instructions under negociation. Key points agreed:

• 6 months transition phase (left over stock of final goods)

• Noise homologation abroad allowed (next 2 years);

• In case of SCR technology, requirements according EU Directive;

• EGR valve validation based on lab test (not field test).


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