Leadership Industry Perspective Eduardo C. Riedel Director Vice-president of CNA Secretary of Government and Strategic Management of the State of MS President of the Board of Sapé Agropastoril
Professional Background: Sapé Agropastoril 1995 Sindicato Rural de Maracaju 1999 - Director 2002 - President Famasul - Federation of Mato Grosso do Sul Cattle Raising and Agriculture 2006/2009 - Vice-president 2010 - Interim president 2012 - President
Professional Background: Sebrae/MS - Brazilian Support Service for Micro and Small Enterprise 2011-2014 President of the Board of Directors Brazillian Agriculture and Lifestock Breeding Confederation (CNA) 2012 - Vice-President Director 2014 - Vice President of Finances Mato Grosso do Sul Government 2015 Secretary of Government and Strategic Management of the State
Sapé: from farm to rural enterprise Activities: Livestock (genetic brangus), agriculture, sugarcane, tourism, poultry farming. 2000/06 - Investment in infrastructure and machinery 2007 - ERP activities implementation; beginning of the activity with sugar cane 2008 - Agreement with shareholders, organizational and corporate restructuring 2013 - Management professionalization
CNA in Brazil institutional overview The Brazilian Confederation of Agriculture and Livestock CNA was founded in 1951. CNA has consolidated its position as the main forum for debate and decision making for Brazilian agribusiness.
The CNA system at a glance 1,949 RURAL UNIONS MORE THAN 1.7 MILLION FARMERS The CNA system is comprised of twenty seven statelevel agriculture and livestock federations and nearly two thousand rural unions, through which direct support measures are provided for farmers at the local level.
Brazil is the leader in tropical agriculture
Technology and entrepreneurship of producers explain the success of Brazilian agribusiness Timeline of the agricultural development in Brazil 1990 to 2014 1975 to 1990 Stage 1 Stage 2 Stage 3 1960 to 1975 Source: EMBRAPA José Eustaquio Ribeiro. Trajetória tecnológica da agricultura brasileira
Brazil is the leader in tropical agriculture Technology is the key to everything Technology in the Brazilian agricultural production process 23% Work 9% Land 68% Technology Source: data Alves et al (2012)
Low Carbon emission technologies No - Tillage Biological nitrogen fixation Planting Forest Crops, livestock and forest integration Livestock grazing/pasture recovery Use of Biodigesters
Production (thou ton) Technology: the stepping-stone for the development of the Brazilian agriculture 250,000 Brazil: evolution of the grain and fiber harvests 4,000 200,000 150,000 100,000 50,000 Agricultural Savings 3,500 3,000 2,500 2,000 1,500 1,000 500 Yield Kilo/hectare - - Production Crop Area Yield Evolution 1976/77 2016/17* Variation % Production (thousand ton) 46.943,1 219.140 367% Crop Area (thousand hectare) 37.313,9 59.540 59,57% Yield (kilo/hectare) 1.258 3.729 197% Source: Conab Made by SUT/CNA * Forecast February/2017.
million tons Meat production also grew on a sustainable basis 16 14 12 10 8 6 4 2 0 5.1 5.6 3.9 4.3 1.3 1.6 10.2 9.9 9.0 7.9 8.2 7.0 6.1 6.2 6.9 7.0 6.3 6.6 6.7 5.9 4.7 5.0 1.9 1.9 1.9 2.2 2.3 2.5 2.6 2.9 14,0 12.3 12.9 13.5 12.7 12.7 12.9 9.6 8,78 8.4 8.8 9.1 8.4 8,45 3,23 3.4 3.5 3.4 3.5 3.6 3,70 In the last ten years, Brazil s beef production grew 20%, pork 50% and poultry 56%. Brazil has the largest commercial bovine herd in the world. It is also a reference in animal health, sustainability and high sanitary standards. Cattle Swine Poultry Source: Conab Made by SRI/CNA
Farm land occupation Brazil s total land area is 851 million hectares. 61% of its national territory is preserved, with 517 million hectares covered by native vegetation.
Importance of agribusiness in Brazil
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p 2017p Importance of agribusiness in Brazil Agribusiness share in Brazil s GDP (%) Projections 23.8 24.1 23.8 23.3 23.9 22.9 22.0 22.1 22.5 22.9 21.6 21.6 21.6 20.8 21.2 21.8 20.6 20.6 20.8 21.5 19.8 20.2 20.6 Source: CEPEA/CNA, 2016 and 2017 Projections CNA
Employment in Brazil s agribusiness Brazil s total workers 98,112,540 Farming 43.2% 13,861,605 Other Sectors 67.3% 66,030,024 Agribusiness 32.7% 32,082,516 Services 20.3% Trade 20.8% Industry 15.7% Source: IBGE/PNAD 2014 Made by SUT/CNA and ICNA
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 US$ billion Brazil s agribusiness trade balance Agribusiness Represents 46% of Brazil s Exports 90 70 50 30 10-10 -30-50 -70-90 71.30 47.68-23.62 Other Sectors Agribusiness Trade Balance Source: AgroStat MAPA Made by CNA
The importance of foreign markets to Brazil (2016) Sugar Soybean Cellulose Coffee Cotton Corn Chicken Pork Beef Ethanol 14% 30% 33% 38% 38% 33% 67% 79% 85% 94% 86% 70% 67% 62% 62% 67% 33% 21% 15% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Domestic Consumption Export Source: MAPA, Conab, Ibá e Unica Made by CNA
World Ranking Brazilian Agribusiness production and export Main Products Production Global Ranking Export Share on International Trade (Exports) Sugar* 1 st 1 st 48% Coffee* 1 st 1 st 27% Orange Juice 1 st 1 st 76% Soybean 2 nd 1 st 42% Chicken* 2 nd 1 st 39% Beef* 2 nd 1 st 20% Corn 3 rd 2 nd 19% Soybean Oil 4 th 3 rd 12% Soybean Meal 4 th 2 nd 22% Cotton 5 th 4 th 8% Pork* 4 th 4 th 11% Source: USDA - *2017. To others, 2016. Made by CNA.
Main challenges for agribusiness
Million people How to feed more than 9 billion people by 2050? 9.306 6.896 2.532 Total Rural Urbano The urban population is larger than the rural population Source: ONU
Geographic change in production 2009 2015 Grain Production Soybean and corn exports Year Brazil Beyond 16 th South Below 16 th South Brasil Beyond 16 th S Below 16 th S 2009 108.0 M/t 56.0 M/t or 52.0% 52.0 M/t or 48.0% 43.0M/t 7.0 M/t or 16.0% 36.0 M/t or 84.0% 2015 180.9 M/t 104.7 M/t or 57.9% 76.7 M/t or 42.1% 99.1M/t 19.4 M/t or 19.6% 79.7 M/t or 80.4% Variation
High operating costs Comparative evolution of crop transportation cost to ports of departure (20 year-period) 120 % Growth in cost 2003-2013 100 80 60 40 20 0 43 51 59 34 28 23 23 23 23 20 20 20 20 20 20 14 15 14 15 15 16 15 17 16 17 18 18 64 78 83 85 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Argentina EUA Brasil US$ 20 US$ 23 US$ 92 98 92 228.6% 53.3% 42.9% Source: Anec (2013)
Challenges to properly inform society Unfounded protests and accusations are among the main challenges faced by the agricultural sector Graffiti at Federal University of Viçosa s walls Leonardo DiCaprio at People's Climate March
Wrong concepts about healthy foods
Action for the improvement of the country's political future
What happens when a leader is missing 2014 2015 2016* GDP Unemployment + 0.1% - 3.8% - 3.4% 7.2 millions 9 millions 12.3 millions Inflation 6.41% 10.67% 6.29% Source: IBGE, Projections Bacen
CNA system actions with a focus on leadership
Pursuit of excellence in production by ensuring safe and quality products Traceability protocols that mention cattle breeds in labels CNA managements the certification Cattle breeds associations inspects
EMBRAPA/CNA: developing sustainable solutions for environmental adequacy of rural properties
Programa CNA Jovem (Young CNA Program) The leadership development program of the CNA/SENAR System, which aims to identify and boost the career of young leaders, from 22 to 30 years of age, who have the potential to drive, from the farming fields, the transformation needed in Brazil. THE DEFINITION OF LEADERSHIP IN THE PROGRAM Leadership is the competence to mobilize people and/or organizations for the change in the way of thinking and behaving, or for the overcoming of complex challenges.
Young CNA Program National stage 2nd Edition (2016)
Thank you! Eduardo C. Riedel