BRAZILIAN AGRIBUSINESS Overview. Brasil-China Business Meeting Brasília, May 16 th, 2011

Transcription

1 BRAZILIAN AGRIBUSINESS Overview Brasil-China Business Meeting Brasília, May 16 th,

2 2009 RANKING: BRAZILIAN PRODUCTION AND EXPORTS Main Products Production Exports Number of Markets Exports US$ Billion Sugar 1 st 1 st Coffee 1 st 1 st Orange Juice 1 st 1 st Soybeans 2 nd 2 nd Beef 2 nd 1 st Tobacco 2 nd 1 st Ethanol 2 nd 1 st Broiler 3 rd 1 st Corn 4 th 3 rd Pork 4 th 4 th Sources: USDA and MAPA

3 AGRICULTURAL PRODUCTION INDEX: FAO-OCDE Projections Brazil is the fastest growing agricultural sector by far, growing by over 40% to 2019, when compared to the base period. (OECD-FAO Agricultural Outlook ) 3

4 AGRICULTURE AREA 2007/2008 HARVEST Most of recent expansion in agricultural area is on pasture land Source: Ministry of Agriculture, Brazilian Institution of Geography and Statistics (pastures 2006)

5 MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION Source: Agriculture and Livestock National Confederation June

6 BRAZILIAN AGRIBUSINESS EXPORTS MAIN PRODUCTS 2010* Total: US$ 73.9 billion Source: Ministry of Development, Industry and External Commerce Elaboration: Ministry of Agriculture * From November 2009 to October

7 BRAZILIAN AGRIBUSINESS EXPORTS MAIN DESTINATIONS 2010* Total: US$ 73.9 billion Source: Ministry of Development, Industry and External Commerce Elaboration: Ministry of Agriculture * From November 2009 to October

8 DOMESTIC CONSUMPTION AND EXPORTS Roughly 70% of the Brazilian agricultural production aims the national market. Sources: Ministry of Agriculture, Brazilian Institute of Geography and Statistics Elaboration: Ministry of Agriculture 8

9 Harvesting soybean Harvesting cotton GRAINS Corn field Soybean field 9

10 GRAINS - PRODUCTION AND AREA 1991 to ,7 149,0 Million tons and hectares 100,3 81,1 82,4 78,4 68,3 57,9 37,9 35,6 38,5 36,6 36,9 37,8 123,2 43,9 114,7 122,5 Production 131,7 Growth: 157,3% = 5,1% / year 135,2 49,1 46,2 47,7 47,3 Harvested Area Growth: 24,9% = 1.2% / year Source: National Company of Food Supply 10

11 MEAT Large scale, state of the art production Biggest exporter of beef and poultry

12 MEAT PRODUCTION EVOLUTION Broiler: + 170% (95-09) Thousand Metric Tons ,200 3,411 1,330 Beef: +70 %(95-09) Pork: + 117% (95-09) Source: Conab High domestic consumption and #1 world exporter ¹The meat consumption in Brazil is close to 100 kg / inhabitant / year, with more than 43 kg of chicken meat, 37 kg of beef and 14 kg of pork. Domestic demand accounts for about 70% of chicken production, 80% of beef production and 85% of pork production.

13 SUGARCANE 13

14 SUGAR AND ETHANOL: PRODUCTION AND AREA Production ,4 4,3 5 11,5 ETHANOL Growth : 142.4% (11.7% p.y.) SUGAR Growth : 93.2% (8.6% p.y.) Harvested Area Growth : 44.5% (5.4% p.y.) 27,6 31,3 8, Harvested area (millions ha) 0 0 Harvested area Sugar (million tons) Ethanol (million m³) Estimate Sources: Ministry of Agriculture, National Company of Food Supply 14

15 Brazilian Coffee One country, many flavors 15

16 FRUITS: Diversity and Good Quality

17 MILK 17

18 MILK Increasing production lead to self sufifciency Source: Milk National Forum Brazilian Confedeeration of Agricultrue and Livestock 18

19 PLANTED FORESTS Planted forests million ha support a diversified wood industry Biggest world exporter of hardwood pulp Highest productivity country in the world Largest growth potential Hardwood Forestry productivity Conifers m³/ha/year (Million ha) 5, ,5 m³/ha/year ,5 2, ,6 Source: ABRAF

20 FOREIGN INVESTIMENT IN AGRIBUSINESS 20

21 GLOBAL TRENDS World population growth with increasing per capita income Increasing demand for higher-quality, better, protein-intensive food (i.e.meat) Continuous need of food production increase Shortage of new areas for agricultural production Challenges to food security

22 BRAZILIAN AGRIBUSINESS COMPETITIVE ADVANTAGES Strong, thriving economy & Institutional framework Leadership in tropical technology Natural resources abundance (land, water, solar energy) Farming vocation & Business entrepreneurship

23 STRONG, THRIVING ECONOMY & INSTITUTIONAL FRAMEWORK Social inclusion & income distribution (upgrowth of middle class) Investment enhancement Consolidated democracy, with stable legal and institutional framework Infrastructure long-term investment program, with strategic actions Sustainable growth based on macroeconomic prudential policies Robust fiscal rules (primary surplus & rigid control of public deficit) Low external vulnerability (with free capital flow) Land investments in Brazil follow well established regulatory procedures permitting several forms of access to foreign investors

24 EVOLUTION OF FOREIGN DIRECT INVESTMENTS IN BRAZIL

25 FOREIGN DIRECT INVESTMENTS By origin - average

26 STRONG, THRIVING ECONOMY & INSTITUTIONAL FRAMEWORK No restrictions on commodity exports BRAZILIAN TRADE BALANCE ( *) AGRIBUSINESS U S $ b i l l i o n OTHERS TOTAL * Source: Ministry of Development, Industry and Foreign Trade Elaboration: Ministry of Agriculture *Last 12 months (Nov09 Oct 10)

27 INFRASTRUCTURE LONG-TERM INVESTMENT PROGRAM STRONG THRIVING ECONOMY & INDUSTRIAL FRAMEWORK 27

28 LEADERSHIP IN TROPICAL TECHNOLOGY Continuous & persistent public and private investments on R&D Opened partnerships with other countries Expressive results of productivity Efficient use of natural resources

29 FARMING VOCATION & BUSINESS ENTREPRENEURSHIP Producer Support Estimate (Public Support to Farmers) Brazil s competitiveness doesn t rely on subsidies. 50% 30% 26% 1% 5% 6% 9% 14% 12% 14% 21% New Zeland Autralia Brazil China Mexico USA Russia Canada OECD E.U. Japan Source: Organization for Economic Cooperation and Development 29

30 TECHONOLOGY and ENTREPRENEURSHIP Sowing corn (2 nd harvest) No tillage (environmentally friendly) Harvesting soybean DOUBLE CROPPING - CORN AFTER SOYBEAN Scale, mechanization Two crops in the same year without irrigation 30

31 FOREIGN INVESTMENT IN AGRIBUSINESS Production Food Processing Machinery and Equipments Infrastructure Distribution Logistics The agribusiness productive chains offer several possibilities for foreign investors: Direct Investment on Projects (Transportation, Storage, Harbourage) Contract Farming (payment in products) Capital Markets (Stocks, Investment Funds) Partnerships and Joint Ventures 31

32 Ministry of Agriculture, Livestock and Food Supply Department for Agribusiness International Promotion Maurício Fleury Curado Advisor for Foreign Investment Esplanada dos Ministérios, Bloco D, 3º Andar, sala Brasília - DF, BRAZIL Phone: +55 (61) mauricio.fleury@agricultura.gov.br 32