Brazilian Agriculture. Feeding the World at Scale, Sustainably

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Eleanor Fitzgerald
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1 Brazilian Agriculture Feeding the World at Scale, Sustainably

Brazil World Ranking, 2015 Source: USDA, 2015/16; AgroStat, 2015 (june/2016); FAO, 2014 Main products Production Exports Number of destinations Sugar 1º 1º 80 Coffee 1º 1º 90

2 Brazil World Ranking, 2015 Source: USDA, 2015/16; AgroStat, 2015 (june/2016); FAO, 2014 Main products Production Exports Number of destinations Sugar 1º 1º 80 Coffee 1º 1º 90 Orange Juice 1º 1º 76 Soybeans 2º 1º 41 Beef 2º 3º 87 Chicken meat 3º 1º 135 Maize 3º 2º 73 Soybean meal 4º 2º 67 Soybean oil 4º 2º 23 Pork 4º 4º 62 Wood pulp 4º 1º 59 Cotton 5º 3º 37

3 Brazil is a great player in sustainable agriculture

Land use in Brazil The area carbon total area of native stock of

preserved in Brazil inside vegetation would farms extend of in over

area of of carbon France emissions and Norway, by the combined. US.

4 Land use in Brazil The area carbon total area of native stock of preserved in the vegetation preserved native vegetation native preserved in Brazil inside vegetation would farms extend of in over Brazil a ishuge equivalent portion of Europe to the 16 years total area of of carbon France emissions and Norway, by the combined. US. Source: Embrapa, IBGE, CNA, MMA, FUNAI, DNIT, ANA, MPOG. Preparation: Embrapa Monitoring

Technological advancement in grain production Million of hectares or tons 200 5,0 180 4,5 160 4,0 140 3,5 120 3,0 100 2,5 80 2,0 60 1,5 40 1,0 20 0,5 0 0,0 Tons per hectare Produção Production

5 Technological advancement in grain production Million of hectares or tons 200 5, , , , , ,5 80 2,0 60 1,5 40 1,0 20 0,5 0 0,0 Tons per hectare Produção Production (milhão (million de tons) ton) Área Areada ofsegunda second harvest safra (milhão (million hectares) Source: CONAB, Embrapa Área Area (milhão (million hectares) Produtividade Yield in the summer na área area de verão (tons/ha) (ton/ha)

Advancements in livestock production 220 Million (hectares or heads) 210 200 190 180 170 160 150 140 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

6 Advancements in livestock production 220 Million (hectares or heads) Source: Agroconsult / IBGE, Secex/MDIC Pastures - Millon hectares Herd - Million heads

The biggest yield in the Forest Sector 40 35 30 Eucalyptus Pine 25 20 15 10 5 0 Brazil China South America*

7 The biggest yield in the Forest Sector Eucalyptus Pine Brazil China South America* Southeast Asia Mozambique Oceania USA Europe Russia Canada m 3 /ha.year *Except Brazil Source: ABRAF/PÖYTRY

8 Energy Supply in Brazil Agriculture 29.1% 4.4% of energy supply of energy consumption Share of renewable energy in total energy supply: Source: BNE, Relatório Síntese, 2016 Source: BNE, Relatório Síntese, 201

115 110 105 33,58% (2015/16 2025/26) 100 95 *

9 Brazil Projections for the next 10 years Base Grains Meat* Milk Pulp ,58% (2015/ /26) * Includes: Cattle, Poultry and Swine Source: MAPA

10 Producer Support Estimate* by Country Percentage of gross farm receipts Vietnam Source: OECD (2015) New Zealand Australia Brazil Chile South Africa Mexico Canada United States Israel Colombia Kazakhstan EU Turkey China Indonesia Japan Korea Iceland Norway Switzerland Brazilian agriculture doesn t rely on subsidies *Transfers from consumers and taxpayers to farmers

11 How to continue increasing production sustainably?

12 Low-Carbon Agriculture (ABC) In 2009, Brazil launched the ABC Plan to hasten the adoption of low-carbon technologies. The country is commited to advancing even further!

13 Carbon mitigation To foster a ABC technolog y shift in agriculture Resilience + Sustainabi + lity

14 As a result, new landscapes are created

Source : Rede de Fomento Integrated Crop Livestock Forest Systems in Brazil ton Co 2 eq 40 35 30 25 20 15 10 5 0 iclf covered 6.7 9.1 35.1 4.8 area 26.4 (million ha) 3.3 17.7 1.9 Carbon 10.7 5.

15 Source : Rede de Fomento Integrated Crop Livestock Forest Systems in Brazil ton Co 2 eq iclf covered area 26.4 (million ha) Carbon mitigation 0.0 (ton Co 2 eq) Launching of ABC Program 11, million ha 0 10 years, a huge leap From 2005 to 2015, ICLF systems were adopted in 9,6 million ha of farmland in Brazil. This is more than all the cultivated land in the UK, Netherlands, Belgium and Denmark, combined. It is also equivalent to 80% of all the cultivated land in Germany. Source : Rede de Fomento ilpf, 2016;

16 NEW investment opportunities Bonn Challenege & Initiative 20x20 Restore 12 million hectares of forests by 2030 Restore 5 million hectares of degraded pastures by 2020 Implement 5 million hectares of integrated ag systems by 2030

17 Brazil already has financial instruments to support the Green Bonds market

18 Brazilian Financial Engineering Rural Producers LCA CDCA CRA Other Bonds Investment Funds US$ Billions Current stock of LCA, CDCA and CRA It s a big Market! CPR CDA NPR CCR ABC (?) Banks Agroindustries Traders Others Investment Banks Individual Investors Others Opportunity to Securitize ABC credit Source: BM&FBovespa/Cetip

19 Brazilian Low- Carbon Agriculture: A great potential to use Green Bonds

These sustainable technologies have already been widely tested/used There is environmental additionality and it can be measured These techniques are

20 These sustainable technologies have already been widely tested/used There is environmental additionality and it can be measured These techniques are profitable and low risk. There is a high demand for investment, for this purpose in Brazil These sustainable technologies have already been widely tested/used

21 The environmental and climate additionality can be measured

22 These techniques are profitable

23 There is high demand for investment, for this purpose in Brazil and financial instruments that can be adapted.

24 Thank You

Bassem Sami Akl Akl JBS Brazil Technical Services Director

Bassem Sami Akl Akl JBS Brazil Technical Services Director May, 2017 RELEVANCE OF AGRIBUSINESS TO BRAZIL * *Gross Domestic Product 2015 Data RELEVANCE OF AGRIBUSINESS TO BRAZIL - LIVESTOCK * *Gross Domestic