1. Brazilian Agribusiness and its
Sustainability Challenges
Dipartimento di Scienze Politiche e Sociali
Bologna University, 12/10/2015
Prof. Aziz Galvão da Silva Júnior
Associate Professor, Rural Economics Department –
Federal University of Viçosa
3. Content
• Brazilian Agribusiness
– Importance
– Development
• Sustainability Challenges
– Economic
– Environment
– Social
• Communication (ex.:)
– Abiove/Aprosoja Europe road show
• Conclusion and Discussion …
4. Importance
(UN 2012, FAOSTAT)
• Brazilian economy
– GDP 2.254.109 M US$
• Agribusiness
– 24% GDP
– 30% labour force
– 40 % export (46% 2015)
• Agrarian structure
– 5,13 M farms
– 85% Family farmers
• < 4 rural module (from 5 to 100 ha depend on the region)
• Mainly family labour
11. “Modernização” 70’s
• Green revolution
– high-yielding varieties
• Braz. Industrialization
– Role of the Agriculture:
• labour force, Market,
Resources (export)
• Research infrastructure
– Embrapa (Brazilian Agricultural Research Corporation)
• Nowadays: 46 units and 16 officies in Brazil. 4 labs and 3 offices in
foreign countries
• Cerrado (Braz. Savannah)
– Development programs
• Polocentro, Prodecer, Padap.
• JICA (Japan International Cooperation Agency)
16. “Native” question
• 698 reserves
• Area: 1.136.357 km2
– 13,4 % Brazil
(8.511.965)
• 3,8 x Italy
• Population: 0,9 M.
– 0,5% Brazil (198,0 M)
• 1,2 km2 per capita
• Current situation
– Poverty, alcoholism,
health care, violence, ...
17. Forest Code
• All 5.130.000 Braz. farms must be registered
– CAR (cadastro ambiental rural = rural environmental
registration).
• On-line system
– Until May 2016
• Legal reserve + Protected areas
– Biodiversity
– Soil conservation
– Water
• Besides legal requirement
– CAR is a mandatory condition for official credit
20. Communication (ex.)
• Braz. Vegetable Oil Industries Association(ABIOVE) +
Soybean Farmer Association (APROSOJA) Road Show
21. 21
Brazilian Vegetable Oil Industries Association
March, 2015
SOYBEAN SUSTAINABILITY
NEW WORKING AGENDA
Fábio Trigueirinho
Secretary
Source: ABIOVE, 2015
22. 22
ABIOVE, the Brazilian Oilseed Processors Association, was founded on
1981 and has 12 members companies who are responsible for approximately
60 percent of Brazil's soybean processing volume.
Brazil is responsible for some 25 percent of the world's soybean production,
with the estimate of a production of 92 million tonnes in the 2014/15 crop.
The soybean complex (beans, meal and oil) is one of the main items in the
country's Trade Balance. In 2014 exports reached US$ 31,4 billion.
Soybean production brings social development to rural areas.
ABOUT ABIOVE
Source: ABIOVE, 2015
23. 23
BRAZIL: FOOD PRODUCTION AND BIODIVERSITY
Improvement in Brazil’s Environmental Governance - transparency;
Challenge - to implement the New Forest Code;
Rural Environmental Registration (CAR) is the most advanced tool;
Soybeans are not an important driver of deforestation;
Transition to a new agenda - Processors support to CAR.
Source: ABIOVE, 2015
24. 24
To contribute so that soybean farmers are in conformity with Brazil’s new
Forest Code and, in this way, reconcile food production with environmental
conservation.
OUR MISSION
Source: ABIOVE, 2015
25. 25
LAND USE AND OCCUPATION IN BRAZIL
554 million hectares of native vegetation (65%)
61 million hectares of productive acreage (7%)
38 million hectares urban areas (5%)
198 million hectares of pastures (23%)
Brasil: 851 million hectares
Source: MMA/IBGE, 2014
Source: ABIOVE, 2015
28. 28
CERRADO BIOME VEGETATION
- 183 million hectares (22% of Brazil)
- preserved native vegetation: 48%
Source: ABIOVE, 2015
29. 29
• Deforestation and fires detection systems in real time
http://www.dpi.inpe.br/proarco/bdqueimadas
http://www.obt.inpe.br/deter/indexdeter.php
• List kept by IBAMA (Brazilian Environmental & Renewable Natural
Resources Institute) of embargoed areas due to illegal deforestation
http://siscom.ibama.gov.br/geo_sicafi/
TOTAL TRANSPARENT COMMUNICATIONS IN BRAZIL
Source: ABIOVE, 2015
31. 31
IMPROVEMENT IN BRAZIL’S ENVIRONMENTAL GOVERNANCE
Governance Factors 2006 2014
Deforestation rate – Amazon Biome 14,286 km² 4,848 km²
Deforestation rate – Mato Grosso State 4,333 km² 1,048 km²
Environmental legislation
Provisional Measure
Lack of legal security
New Forest Code
Federal Law No. 12651/2012
Compliance with legislation Low High
Penalties for illegal deforestation
Warnings and fines with
low collections
Embargoes of farms and high fines
Monitoring of environmental crimes Start-up of satellite use
Use of satellite images in real time with
high definition
Field inspections IBAMA technicians
Inspections integrated with Federal
Police, Federal Highway Police, SEMAs
and National Security Force
Requirements for purchasing agricultural
products
No requirements IBAMA’s Embargoed Areas List
Fonte: http://www.obt.inpe.br/prodes/prodes_1988_2014.htm
Source: ABIOVE, 2015
32. 32
SHARP FALL IN DEFORESTATION
Deforestation rate in the Amazon Biome over the last
ten years, in km2
Source: INPE, 2014
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: ABIOVE, 2015
33. 33
BUSINESS
SECTOR
GOVERNMENTCIVIL SOCIETY
• ABIOVE
• ANEC
• ADM
• ALGAR AGRO
• AMAGGI
• BUNGE
• CARGILL
• FIAGRIL
• LOUIS DREYFUS
• NOBLE
• EUROPEAN CONSUMERS
• CONSERVATION INTERNATIONAL
• GREENPEACE
• IPAM
• TNC
• IMAFLORA
• WWF BRASIL
• BANK OF BRAZIL
• MINISTRY OF THE ENVIRONMENT
• NATIONAL SPACE RESEARCH
INSTITUTE
SOY MORATORIUM - MEMBERS OF THE GTS
ABIOVE and ANEC made a commitment not to acquire soybeans
from deforested areas of the Amazon Biome after July 2006.
Source: ABIOVE, 2015
34. 34
STATE
2006-2014
(ha)
MATO GROSSO 34,161
RONDÔNIA 1,246
PARÁ 11,620
TOTAL 47,028
SOY MORATORIUM
SOYBEANS ARE NOT AN IMPORTANT VECTOR OF DEFORESTATION
These 47,028 hectares in non-conformity with the Soy Moratorium
correspond to 0.9% of the Amazon Biome deforestation 5,210,000 hectares
Source: AGROSATÉLITE / INPE, 2013
MONITORING DATA ACCUMULATED
Source: ABIOVE, 2015
35. 35
SOY MORATORIUM – NEW AGENDA
MONITORING BY SATELLITE EVEN MORE TRANSPARENCY
• Quantifies soybean planting in the Amazon Biome;
• Locates areas of expansion;
• Orients public policies;
• Orients programs that resolve local problems with emergency actions.
Source: ABIOVE, 2015
36. 36
SOY MORATORIUM - NEW AGENDA
DEFORESTATION POLYGONS AFTER JULY 2008
Area Total
(Hectares) Nº Polygons (Hectares)
0 a 50 99 2,411
50 a 100 34 2,531
> 100 73 22,281 (82%)
Total 206 27,223
• 47,028 hectares are in non-conformity in the last monitoring cycle (2013/2014)
• 27,223 hectares were deforestated after July 2008
• 22,281 hectares (73 polygons) are over 100 hectares – priority for inspection
Source: ABIOVE, 2015
37. 37
SOY MORATORIUM - NEW AGENDA
RURAL ENVIRONMENTAL REGISTRATION - CAR
• Identification of the land owner and the area of the rural property: allowing
monitoring and control
• Survey of environmental assets and liabilities: environmental adequacy of
rural properties regarding Legal Reserves and Areas of Permanent
Preservation
• Definition of land use and occupation: reconciling environmental
conservation with food production
• Brings legal security to the producer
• Mato Grosso: 87% and Pará: 77% of the area is done
• http://www.car.gov.br/
Source: ABIOVE, 2015
38. 38
HIGH CONSERVATION VALUE AREAS (HCVAs)
Environmental legislation guarantees that large areas of
private land are preserved
Areas of Permanent
Preservation (APP):
along the margins of
rivers and hilltops
Legal Reserve (RL):
native vegetation must
be preserved on 20% to
80% depending on the
biome
Source: ABIOVE, 2015
39. 39
To contribute so that soybean farmers are in conformity with Brazil’s new
Forest Code and, in this way, reconcile food production with environmental
conservation.
Good News:
Public Governance has improved significantly since 2006 - high
enforcement of the environmental law;
Soyabean is not a relevant vector of Amazon Biome deforestation -
transparency by sattelite monitoring;
Forest Code provides useful tools to protect HCVAs - CAR, Permanent
Preservation Areas and Legal Reserve
OUR MISSION
Source: ABIOVE, 2015
43. ABC Credit
• Low carbon agriculture
– Agricultura de Baixo Carbono
• Activities
– No-tillage system;
– Recovery of degradeted pastures;
– Integration crop-livestock-forest;
– Planting of comercial forest;
– Biological nitrogen fixation;
– Animal waste treatment.
• Credit volume 2014: around 1 billion US$
44. Conclusion & Discussion
• Sustainability in the Agribusiness
– Economic
– Social
– Environmental
• Braz. Social and economic situation
• Role of China
• Environmental law
– Competitive imbalance
• Communication: ?
