Brazilian Agriculture Outlook

Blairo Maggi Minister of Agriculture, Livestock and Food Supply

Brazil in the Global

Agricultural Trade

Brazil's share in the Top 20 World Agricultural Markets - 2015

Source: Trademap/CCI, 2015. Made by: SRI/MAPA. Excludes EU internal trade. Data extracted in June/2016.

Brazil – World Ranking, 2015

Source: USDA, 2015/16; Trademap/CCI, 2015. Made by: SRI/MAPA. Data extracted in June/2016.

Product Production Exports Market Share

Sugar 1º 1º 47%

Coffee 1º 1º 28%

Orange Juice 1º 1º 46%

Soybeans 2º 1º 38%

Beef 2º 3º 14%

Broiler meat 3º 1º 42%

Corn 3º 2º 20%

Soybean Meal 4º 2º 23%

Soybean Oil 4º 2º 13%

Pork 4º 4º 9%

Cotton 5º 3º 11%

Agriculture in

Brazilian Economy

Share of Agribusiness in Brazilian Economy

Source: CEPEA/USP, 2015.

World Demand and Supply

Prospects for Food

Asia: Future of agriculture exports

51% world’s population 19% GDP 18% available land 23% renewable water

Consumption (% world)

28% chicken 20% beef 31% dairy products 37% sugar

SOUTH AND SOUTHWEST : Bangladesh, Bhutan, Brunei, Cambodia, China, Hong Kong, India, Indonesia, Laos, Macau, Malaysia,

Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, East Timor, Vietnam

Source: ICONE

0.664 0.703 0.68

0.338 0.333 0.322 0.255

1.74

3.228

0

1

2

3

4

5

6

2009 2020 2030

Europe North America Pacific Asia Central and South America Middle East and North Africa sub-Saharan Africa

Global Middle Class evolution (in billion of people)

1,845

3,249

4,884

Source: OECD Elaboration: SRI / MAPA

Land and Water Available in the World

Note: Land – available, not protected (including pastures). Water – total renewable water sources

Source: Fischer e Shah (2010) in World Bank, 2010 (Rising Global Interest in Farmland: Can it Yield Sustainable and Equitable Benefits?). Elaboration: ICONE, FAO

Land Distribution in Brazil

Source: Embrapa, IBGE, CNA, MMA, FUNAI, DNIT, ANA, MPOG. Preparation: Embrapa Monitoring

Brazil: Green Savings - Grains

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0

20

40

60

80

100

120

140

160

180

200

197

6/7

7

197

7/7

8

197

8/7

9

197

9/8

0

198

0/8

1

198

1/8

2

198

2/8

3

198

3/8

4

198

4/8

5

198

5/8

6

198

6/8

7

198

7/8

8

198

8/8

9

198

9/9

0

199

0/9

1

199

1/9

2

199

2/9

3

199

3/9

4

199

4/9

5

199

5/9

6

199

6/9

7

199

7/9

8

199

8/9

9

199

9/0

0

200

0/0

1

200

1/0

2

200

2/0

3

200

3/0

4

200

4/0

5

200

5/0

6

200

6/0

7

200

7/0

8

200

8/0

9

200

9/1

0

201

0/1

1

201

1/1

2

201

2/1

3

201

3/1

4

201

4/1

5

Produção (milhão de ton) Área (milhão hectares)

Área da segunda safra (milhão hectares) Produtividade na área de verão (ton/ha)

Mil

lio

n o

f h

ec

tare

s o

r to

ns

Yield 4.5 t/ha

Yield 1.4 t/ha

Source: CONAB

LAND SAVINGS: keeping the same average yield of 1976, 156.6 million hectares (3.3 times the current area) would be necessary in order to produce 202.2 million tons

+220%

38

years

Production (million tons) Area of second harvest (million hectares)

Area (million hectares) Yield in the summer area (tons/ha)

Brazilian products feature:

Sustainability

Fair work

Social responsability

Traceability

Functional foods

Geographical indication

Value adding

AGROECOLOGY AND ORGANIC PRODUCTION

22.5% OF BRAZILIAN MUNICIPALITIES

ALREADY HAVE ORGANIC PRODUCTION

Distribution of Organic Production Units per Micro-Regions, March 2016

Over 100

Source

Control Procedures for Guaranteeing Organic Quality

ORGANIC PRODUCTS SEAL

AGROECOLOGY AND ORGANIC PRODUCTION

Phytosanitary Products Approved for Organic Agriculture

1

20

29 33

37 37 41

3

14

20 27

49

0

10

20

30

40

50

60

70

80

90

100

1984 2010 2011 2012 2013 2014 2015

Nu

mb

er o

f re

gist

ered

pro

du

cts

Anos

BIOLOGICAL PRODUCTS REGISTRATION - JAN 2016 EMERGENCY REGISTRATION NOT INCLUDED

Via Organico

Via Convencional

41 biological products have been registered along 31 years (1984-2015) for traditional agriculture whilst 49 products were registered for organics in a 5 year period (2010-2015)

IN 2016 5 BIOLOGICAL PRODUCTS

HAVE ALREADY BEEN

REGISTERED FOR ORGANICS AND THERE ARE

33 REGISTRATION APPLICATIONS UNDER REVIEW

AGROECOLOGY AND ORGANIC PRODUCTION

Organics

Traditional

Investment Opportunities

Logistics in the “North Arco”: Waterways, Highways and Railroads

Cities

States

Other Latin America countries

Waterways

Railroads planned or under construction

Railroads for concession

Railroads

Highways planned or under construction

Highways for concession

Highways

Infrastructure: Ports

• By July 2016, 180 port facilities have already been authorized by the Federal Government Agencies (ANTAQ):

Source: ANTAQ

Investments in ports have

reached US$ 4.9 billion in 2016

20

New Concessions for Railroads

AM

AC

RR

RO

PA

AP

TO

MA

PI

CE

RN

PB

PE

AL

SE BA

MT

DF

MS

GO

MG

ES

RJ

SP

PR

SC

RS

Barcarena

Açailândia

Santarém

Miritituba

Sinop Lucas do

Rio Verde

Sapezal

Porto Velho

Figueirópolis Barreiras

Eliseu

Martins

Salvador

Guanambi Campinorte

Anápolis

Corinto Estrela

D’Oeste

Dourados

Estreito

Aguiarnópolis

Xambioá

Cuiabá

Panorama

Porto Alegre

Corumbá

Uruguaiana

Rondonópolis

Alto Araguaia

Chapecó

Passo Fundo Santa

Maria

Palmas

Belo

Horizonte

Sinop/MT - Miritituba/PA (990 km)

Sapezal/MT - Porto Velho/RO (950 km)

FICO - Lucas do Rio Verde/MT - Campinorte/GO

(883 km)

Estrela D’Oeste/SP - Dourados/MS (659 km)

Anápolis/GO - Corinto/MG

(775 km)

Ferrovia Norte-Sul

Açailândia/MA - Barcarena/PA (457 km)

Vitória/ES - Rio de Janeiro/RJ

572 km

Pecém

Ilhéus

Vitória

Rio de

Janeiro

Paranaguá

Santos

Rio Grande

Suape

Itaqui

Vila do Conde

Ferrovia Norte-Sul

Palmas - Estrela D’Oeste (1.536 km)

Malha Principal

Em construção

Estudos prontos

PMI

Belo Horizonte/MG – Guanambi/BA

(845 km)

Finished studies for new railroads: 2,991 km Studies under review: 4,676 km

Main rail

Under construction

Finished studies

Studies under review

Storage Opportunities

Source: CONAB

0,87 PR

0,71 MT

0,69 GO

0,65 MS

0,64 BA

0,61 MA

0,50 TO

0,42 PI

Production/

Current capacity

States

• The current static storage capacity is of 145

million tons

Over 45 million tons need investment

Capacity Distribution

Difference (thousand tons)

Brazil and the Future of Agriculture World:

• Growth in global food demand (mainly Asia) BRAZIL:

• High availability of land and water

• Sustainability

• Technology leader in tropical agriculture

• High level of environmental protection

• Great strides in adding value to Brazilian products (including organic farming)

• Many opportunities for investment in agriculture, particularly in the area of

infrastructure and logistics (transport and storage)

Thank you!