Agriculture opportunities

An Expert's View about Integrated Agribusiness in Brazil

Last updated: 19 Jul 2011

The agricultural sector has for many decades been the backbone of Brazil’s economy. Agriculture and its related sectors such as forestry and aquaculture account for 26.4% of the Brazilian GDP and employ 39% of the national labour force.

Sector briefing Agriculture opportunities in Brazil Why Brazil? The agricultural sector has for many decades been the backbone of Brazil?s economy. Agriculture and its related sectors such as forestry and aquaculture account for 26.4% of the Brazilian GDP and employ 39% of the national labour force. The variations in climate in Brazil?s producing regions have enabled the development of a diversified agriculture and production of both temperate and tropical crops. Currently, some 50 million hectares are planted with annual crops and 20 million hectares with perennial crops or planted forests. Besides, there are approximately 220 million hectares being used as grazing land. Beef is produced extensively and the introduction of new and modern cattle ?The variations in climate in raising techniques will enable Brazil to increase the productivity of areas currently used for Brazil?s producing regions general farming activities. have enabled the development of a diversified Find general information on the Brazilian market conditions on UKTI?s website. The agriculture and production of Doing Business Guide for Brazil?s gives an both temperate and tropical overview of Brazil?s economy, business culture, crops?. potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Agriculture opportunities in Brazil the need for imported fertilizers and the rush Opportunities to open markets and new technology created high levels of indebtedness and there is heavy Brazilian agriculture responded positively to the reliance on official credit. The UK has an opening of the domestic economy in 1990. This important share of the market in both sparked a race to introduce modern technology fertilizers and defensives such as pesticides and mechanization and to improve breeding and herbicides. stock through better genetics. Cutting production costs remains a priority and there Key facts and figures are plentiful opportunities for foreign companies interested in technology transfer ? 15 ? 20% of all the world biodiversity is projects and joint ventures. located in Brazil and is found in its several biomass such as the Amazon Forest with 3.6 There is no such thing as a typical Brazilian million km2, the Atlantic Forest, the Pantanal farm. Sizes, land prices and sophistication vary and the Brazilian Savannah; hugely around the country. Foreign visitors to most farms in the South, Southeast and ? The Brazilian agribusiness GDP represents Midwest expecting to see "Third World" 26.4% of the country?s total GDP (US$ technology and practices will be taken aback 1,577,264.36 million); by the degree of efficiency and mechanization. Soya yields per hectare in the Midwest for ? Agriculture accounts for US$ 174.3 bn example are unsurpassed anywhere in the (71.3%) and livestock US$ 70.1 bn (28.7%); world. ? 70% of its landmass is suitable for cultivation Soybean and maize are the main cultures and the areas already in production account for planted in Brazil, responding for 42.8% and 19% of the world's arable land. 37.8% respectively of the total grain production. The Southern region ranks first in ? Brazil?s total exports in 2010 are valued at the production of grains, being responsible for US$201.9 bn, of which agribusiness is worth 42.93% of the total Brazilian production of US$ 76.4 billion (37.8%). The EU is Brazil?s 149.5 million tones - rice, beans, maize and largest trading partner and the main soybean account for 90.9% of the regional destination of agribusiness exports; production. The Midwest is the second most important region, accounting for 35.1% of the ? Brazil agriculture production is expected to Brazilian production, with soybean, maize and grow. In 2010, Brazil used 47.4 million cotton as the main cultures, followed by the hectares to produce grains, 27% more than in Southeast region with 11.4%, Northeast with 2000. There has also been an increase in 40% 7.9% and the North with 2.7%. in the crops productivity during the same period. The rate of productivity surpasses the As to livestock, with the world?s largest figures registered for the eight major commercial herd, beef production in Brazil economies in the world. reached 9.2 million tons in 2009, of which 18.2% was destined to exports. Poultry ? Production of sugar and ethanol is production reached 12 million tones and increasingly significantly. 2010 figures show exports represented 31.6% in 2010. sugar cane production reached 624 million tons. This record number represents a raise of Although studies envisage a huge growth in 3.4% in total production in comparison to the Brazil agriculture production, the country still cycle of 2009. Of this, 53.8% (336.2 million faces serious problems with logistics, tons) was for ethanol, producing 27.7 billion considered inefficient and inadequate. The litres, and 46.2% (288.7 thousand tons) for problems include several deficiencies in sugar, producing 38.7 million tons. Gross transport infrastructure and storage. The value of production is US$10.8 billion and the government is aware they have to promote industry employs some 1.5 million workers, investments to reduce the loss in the fields, with 45,000 of these being farmers. Exports improve the quality of roads (major type of account for US$7.8 billion. transport used to transport the commodities) build and expand railways as well as implement ? Brazil is the third food exporter in world the use of waterways. However, the speed of behind of the USA and the EU. the investments is still very slow. In addition, UK Trade & Investment Sector briefing: Agriculture opportunities in Brazil Promising areas Brazil?s immense potential for agribusiness offers a huge scope for investment and opportunities to British companies in the use of biotechnology for the development of new varieties and strains resistant to parasites, pests and diseases, water stress and drought resistant varieties as well as IT solutions for agriculture management and precision agriculture. UK companies should also exploit opportunities in the following areas: ? Biotechnology with direct application in agriculture and food production; ? Food safety; ? Traceability; ? Animal genetics; ? Organic and GM food: production, technology and market trends (consultancy services); ? Basic minerals such as potash, phosphate and nitrogen; ? Precision agriculture, remote sensing and precision machinery; ? Post-harvest technology; ? Prawn and fish farming technologies; ? Deep sea fishing and fishing vessels; ? High added-value machinery to boost productivity and reduce wastage. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Agriculture opportunities in Brazil Major events and activities UKTI contacts Expointer Paula Abreu Market Development Manager Time: 27 August ? 4 September 2011 British Embassy Brasilia Note: annual fair Tel: (0055 61) 3329 2528 Website: www.expointer.rs.gov.br Email: paula.abreu@fco.gov.uk Largest agricultural and livestock exhibition in www.ukti.gov.uk Latin America, with a mix of agricultural machinery & implements manufacturers, Tatiana Santos breeders (milk & beef) of cattle, sheep, goats, Trade Development Office Manager pigs, horses, fertilisers, veterinary products, British Embassy Brasilia Tel: (0055 61) 3329 2358 rural management techniques, new Email: tatiana.santos@fco.gov.uk technologies, etc. www.ukti.gov.uk Find full details of events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Agriculture opportunities in Brazil Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Brazilian market market are you to meet contacts and promote your advised to undertake as much market research company in the Brazilian market and planning as possible in the UK. UKTI?s team in Brazil, with its wide local knowledge This work is available via our Overseas Market and experience, can provide a range of Introduction Service (OMIS) a chargeable services to British-based companies wishing to service which assists British-based companies grow their business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Brazilian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Agriculture opportunities in Brazil
Posted: 19 July 2011, last updated 19 July 2011