Food security in Brazil: achievements and main challenges
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1 Food security in Brazil: achievements and main challenges Joaquim Bento de Souza Ferreira Filho Escola Superior de Agricultura Luiz de Queiroz - ESALQ University of São Paulo - USP 1 Pre-conference on Global Food Security Challenges. Milano, 2015
2 Main questions What are the main challenges for food security in Brazil? What are the current farm and trade policy responses formulated to address these challenges and indication of success/failure? How do these regional approaches impact on other regions/global food security and vice versa. 2 Pre-conference on Global Food Security Challenges. Milano, 2015
3 The Brazilian Food Security System Brazil is a major food producer and exporter. Lack of access to food in the country: diagnosed by successive governments as a problem of income deficiency, and not a problem of food supply. the FS system developed accordingly, as a system focused in income increase and income transfers programs. focus on food access and not nutritional quality. There are, however, important innovations focused on family agriculture. 3 Pre-conference on Global Food Security Challenges. Milano, 2015
4 The food security system in Brazil : CFP. Origins of the food prices stabilization system 1990 s: started to change from price stabilization to food security in the 90 s, after the opening of the Brazilian economy to external trade. Evolved gradually through institutional innovations s: new momentum, together with other important transfer programs. Zero Hunger Program transformed in official program in 2002 Food Acquisition Program (PAA) created in Food purchases from family producers. Pre-conference on Global Food Security Challenges. Milano, 2015
5 5 Food security policies in Brazil: three main pilars 1. Stimulus to food production General rural credit policies; PRONAF: credit program to small food producers at preferencial interest rates. 2. Food supply policies CONAB. Mission: Contribute to the regularity of food supply and guarantee of income to rural producers, participating of the formulation and execution of agricultural and food supply policies 3. Bolsa Familia Program - Conditional income transfer program targeted to the poorest. Due to its magnitude and operational characteristics, the BFP is the main instrument for poverty alleviation and, by consequence, food security at work presently in Pre-conference Brazil. on Global Food Security Challenges. Milano, 2015
6 6 Companhia Nacional de Abastecimento - CONAB Historically in charge of the Minimum Prices Policy (PGPM) agricultural prices stabilization in Brazil. After the opening of the Brazilian economy in the nineties faced important institutional innovation: Gave up price stabilization at national level Focus on local intervention and particular groups. Gradually changed it s role toward food security. Presently is the operational arm of the food security system. For that purpose, developed new policy instruments in substitution to the old Pre-conference on Global Food Security Challenges. Milano, 2015 purchase/stock/sales system.
7 New policy instruments with focus on: Facilitating product flows from isolated regions to markets (local or exports), or to regions with product shortages. Operated basically through financial instruments, like sales Pre-conference on Global Food Security Challenges. options. 7 Milano, 2015
8 CONAB: New intervention instruments (commercial agriculture) The Federal Government Acquisition Program (Aquisições do Governo Federal AGF) The Options Contract (Contrato de Opções CO) The Product Flowing Premium (Premio de Escoamento de Produto PEP) Product Flowing Value (Valor de Escoamento de Produto VEP). Risk Premium for the Acquisition of Agricultural Product originating in a Private Sales Option Contract (PROP) Equalizing Premium to Producers (PEPRO) Sales in Public Auctions Counter Sales (Vendas em Balcão) These are sophisticated instruments that avoid stock creation, and gives incentives to direct sales from producers to consumers, and the use of financial instruments. 8 Pre-conference on Global Food Security Challenges. Milano, 2015
9 The PAA program (Food Purchases from Familiar Agriculture): poverty in rural areas Both a food supply and an income transfer program. Acquisition of food from small producers through a simplified process of bids, at prices compatible to those practiced at regional markets level. Products are used in food programs by: social assistance institutions households in conditions of food insecurity programs of food bundles distributions. There are five main modalities of purchase in PAA: Direct Purchase from Family Agriculture (DP) Local Direct Purchase with Simultaneous Donation (LDP) Stock Formation (SF) PAA Milk Purchase and Simultaneous Donation (PSD) 9 Pre-conference on Global Food Security Challenges. Milano, 2015
10 Millions of Reais Number of producers PAA: total disbursement and number or producers assisted Value Number of producers 10 Pre-conference on Global Food Security Challenges. Milano, 2015
11 Evolution of PAA modalities 100% 90% 0,25 0,20 0,17 0,13 0,12 0,13 0,16 80% 70% 0,41 60% 50% 0,41 0,63 0,67 0,72 0,80 0,67 40% 30% 20% 0,34 0,46 10% 0% 0,18 0,16 0,16 0,16 0, Direct purchases Purchase and donation Stock formation 11 Pre-conference on Global Food Security Challenges. Milano, 2015
12 Million of Reais (2014 values) Number of households (millions) Bolsa Familia Program: about 0.5% of Brazilian GDP (R$5.52 trillions) in , , , , , , , , ,00 12 Bolsa Familia (value) Pre-conference on Global Food Security Challenges. Milano, 2015 Number of households
13 Millions of Reais Number of PRONAF contracts Rural credit: commercial and family producers (PRONAF) , , , , , , , , Total rural credit PRONAF Number of PRONAF contracts 0 13 Pre-conference on Global Food Security Challenges. Milano, 2015
14 Per capita income inequality Per capita income Proportion of poor 14 Pre-conference on Global Food Security Challenges. Milano, 2015 Hoffmann (2015): 1/3 of the fall in poverty due to social programs
15 Food security in Brazil: 2004 x Percentage of population Food secure Light insecurity Moderate insecurity Severe insecurity Food security improved in the period, in spite of the food price increases (MDS, 2015). Higher in rural areas in Northeast Brazil. 15 Pre-conference on Global Food Security Challenges. Milano, 2015
16 Challenges for the near future 16 Pre-conference on Global Food Security Challenges. Milano, 2015
17 Evolution of food and general price index in Brazil. 17 Pre-conference on Global Food Security Challenges. Milano, 2015
18 % of GDP Central government fiscal imbalance 45,00 Brazilian public sector net debt as a share of GDP 40,00 35,00 30,00 25,00 20,00 15,00 10,00 5,00 0,00 Month/Year 18 Pre-conference on Global Food Security Challenges. Milano, 2015
19 19 Challenges for the Food Security System in Brazil Complex and expensive system: only Bolsa Familia represents 0.5% of GDP. Sizeable fiscal effort. Slugish GDP growth: 0.1% in % in 2015? No rules of exit for the conditional transfer programs. Low quality of the educational system. The extent to which the Brazilian federal government will be able to fund its social policy in the coming years is the most important issue for Pre-conference on Global Food Security Challenges. Milano, 2015
20 Thank you. 20 Pre-conference on Global Food Security Challenges. Milano, 2015
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