OVERVIEW. Goals and objectives of the tour Participants on the tour Number and types of visits Take-Aways Conclusions Questions
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2 OVERVIEW Goals and objectives of the tour Participants on the tour Number and types of visits Take-Aways Conclusions Questions
3 Our trusty plane and pilots in Brazil. Magnificent Iguacu Falls, Brazil. Tango show in Buenos Aires. IFB and ISA delegation meet up for dinner.
4 GOALS & OBJECTIVES Assess the competitiveness of South American farmers and agriculture with regard to: Production Marketing and trade options Infrastructure Regulatory environment Trade prospects Determine whether and how American farmers need to improve in those areas here at home and Develop arguments and talking points to advocate for policies and actions to ensure American competitiveness
5 Brazil Manaus Itaituba Campo Novo Lucas do Rio Verde Brasilia Cascavel Foz do Iguacu Argentina Rosario San Andres de Giles Buenos Aires
6 PARTICIPANTS
7
8 NUMBER AND TYPES OF VISITS Infrastructure or facilities (2) Farms (8) Research organizations (2) Processors or manufacturers (2) Farm and ag groups (4) Government (4)
9 INFRASTRUCTURE
10 FARMS
11 FARMS (CONTINUED)
12 INNOVATIVE
13 RESEARCH ORGANIZATIONS
14 PROCESSORS & MANUFACTURERS
15 FARM GROUPS
16 GOVERNMENT
17 TAKE-AWAYS: INFRASTRUCTURE Less than expected public investment in infrastructure in Brazil: BR-163 started in 2009 far from finished urban needs prevail Private investment (Amaggi Port at Itacoatiara) grain terminals in Itaituba (Bunge, Cargill and Hidrovias) more prevalent Argentina s prospects for infrastructure improvements and investment are better: Prior administration taxed agriculture and favored transportation needs of unions over farmers Current administration pledging to invest in agricultural infrastructure
18 THE PEOPLE
19 TAKE-AWAYS: AG PRODUCTION Farming across Brazil/Argentina is as diverse as across the U.S. Soybean yields grew 40% over last decade due to better varieties. Corn production established and increasing in some areas. Climate advantage allows harvest of two crops per year. Depending on location and crop, land costs are 35% of U.S. prices. Other input costs (seed, fertilizer, energy) higher than ours. Farmers integrate farms to include livestock, bio-digesters, other crops or services to sustain them in periods of low prices or currency shifts.
20 THE PEOPLE
21 TAKE-AWAYS: RESEARCH Access to the latest crop technologies more limited in Brazil and Argentina than we expected. Argentina is limited to Roundup Ready I due to farmers saving seed Brazilian farmers have Roundup Ready II plus BT Both countries experiencing weed resistance and pest pressure, but lack the latest technologies. Brazil has excellent public (EMPRAPA) and private (Fundacion MT) research organizations for major crop and agronomic issues. Major new biotech initiatives are only available through private tech companies; which are busy focusing on U.S. farmer issues.
22 THE PEOPLE
23 TAKE-AWAYS: RENEWABLE FUELS Decades of Brazilian government support for production/use of renewable fuels (e.g., ethanol from sugarcane) equals a robust market and demand for ongoing production and use. Discussions ongoing in Brazil over corn-based ethanol and expansion of biodiesel production. Brazil s December 2017 passage of law establishing RenovaBio program will further boost biofuels production and use. Projected expansion in Brazil s biofuels programs means a huge amount of potential crop usage; leaving meal, DDGs, and other feedstuffs to market.
24 CONCLUSIONS U.S. farmers still have a competitive edge on: infrastructure but if we do not invest in ours soon, we will lose it government stability/policy/currency lower in Brazil and Argentina relative to U.S. and makes their business more challenging political clout Brazilian and Argentine farmers have limited power and are taxed and ignored rather than invested in We face similar challenges on labor, barriers to biotech crops Integrated livestock systems have grown considerably in both countries as their reputations as quality producers grew: very high per capita beef consumption in both countries means U.S. market share strong in the short-term over the longer-term, beef, pork, and poultry farmers in the U.S. will face strong competition from South America
25 THANK YOU!
26 QUESTIONS?
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