ukti brazil webinar - how agribusiness in brazil works

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Agribusiness How Agribusiness in Brazil Works Ernani Carvalho da Costa Neto [email protected]

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Page 1: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

How Agribusiness in Brazil Works

Ernani Carvalho da Costa Neto [email protected]

Page 2: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Ernani Carvalho da Costa Neto

Page 3: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Page 4: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

LAND USE IN BRAZIL

204

24%

Conservation

Units and ILs

135

16%

Permanent

Protected Areas

214

25%

Other Native

Vegetation

198

23%

Pastures

60

7%

Crop Land

9.5

1%

Sugarcane

4.5

0,5%

Sugarcane

FOR ETHANOL

Over 60% of the Brazilian

area remain untouched

225 M ha of

protected Indian

lands and National

Parks.

35mi

To be released for

crops

Page 5: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Source: Ministry of Agriculture, Livestock and Food Supply.

Page 6: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazilian Production and Exports

Source: Valor Setorial Agronegócio, 2014

Sugar Coffee Soybean Beef Meat

Broiler Corn Pork Cotton

Brazil % in World

Porduction Brazil % in World

Export

Brazil Ranking in

World Porduction

Brazil Ranking in

World Export

Page 7: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazilian Grain Production

Page 8: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Source: Valor Setorial Agronegócio, 2014

Brazilian

Harvest In million MT

Em US$ bilhões

Brasil

Agronegócio

and main STATES producers

Em % da safra

TOTAL

193,6

(100%)

Page 9: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Ag-Calendar – Three Crops

North

Northeast

Midwest

Southeast

South

North

Northeast

Midwest

Southeast

South

Midwest

Southeast

South

Page 10: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Trade Balance Agribusiness – 2006-2015

Export

Import

USD billion

Page 11: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Destination of Brazilian Agricultural Exports

Page 12: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazilian Soybean Production

1990-91 to 2015-16*

0

20.000

40.000

60.000

80.000

100.000

120.000

-

500

1.000

1.500

2.000

2.500

3.000

3.500

Area Production Productivity(MT) (ha) (kg)

(kg)

(MT) (ha)

Page 13: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Top 10 Soybean Producers and Exporters

In million MT

Page 14: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Top 10 Largest Grain Exporters in Brazil

Source: Associação Nacional dos Exportadores de Cereais - ANEC

Page 15: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Double Cropping

Maize after Soybean

Page 16: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazilian Maize Production: 1st and 2nd Harvest (Million MT)

Page 17: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Page 18: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Beef Cattle Evolution in Brazil, US and

Australia (Base 100 year 2000)

Page 19: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Ten Largest Meat Industries in the World

Page 20: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

The Ten Largest Brazilian Exporters of Beef

Meat

Page 21: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazil and US Poultry Exports in the World

Market

Page 22: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Top Poultry Producers (Millions MT)

* Projections

Page 23: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

http://www.valor.com.br/agro/4478968/gigantes-do-leite-pisam-no-freio-e-oferta-cresce-menos

The Great in Milking Location of the 100 largest farms in Brazil

# of farms

Slower pace

Evolution of daily average production of the 100 largest (in liters)

Top Ten Largest

Farms with the highest production

Page 24: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

THE TEN

LARGEST

MILK

PRODUCERS

IN BRAZIL

Page 25: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Fruits – Production Map

Page 26: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Commercial vs. Small Family

Farms

Page 27: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Annual allocations of concessional credit

through the National Rural Credit System

Page 28: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Rural Credit: utilization of funding for investment in BRL thousands

Investment Credit Evolution for Agribusiness

Page 29: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Investment Credit by Programmes –

2013/14

Page 30: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Annual interest rates applied in selected

investment credit programmes for

agriculture, 2013-14

Page 31: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

% of Input financing for Soybeans in the regions South and Midwest, season

2009/2010

Source: Silva, 2012.

Finance Channels of Input Financing

Commercial

Banks

Credit

Cooperatives

Input

Suppliers

Trading Co.,

Processors,

Exporters

Own Cash

Flow

Page 32: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Brazilian Agribusiness Case Potential of livestock in the Southeast and Mid-West of Brazil*

Brazilian cattle

heard by region

in million heads

- 2013

* Prepared by Aliomar Gabriel da Silva

Page 33: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Tropical fodder

Sunlight

Temperature Rain

Soil

Page 34: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Grazing Management

Pasture feeding

Zebu cattle

National

Average Potential

Milking (kg/ha/year) 800 14,000

Beef (kg/ha/year) 78 1,300

Page 35: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Opportunities for Collaboration:

UK Brazil • Milk and beef producers need high quality inputs

• High quality input availibility demands:

– Proper machinery

– High quality cattle feed ration

– Correction and fertilization of the soil

– Control of weeds, insects and pests

– Animal health products

Objective: transform traditional farms into sustainable

businesses, viable altogether in economic, social and

environmental dimensions

• Brazil, as a great food exporter, presents a significant

business opportunity for UK providers of technology in

Agribusiness

Page 36: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

Agricultural inputs (seeds, chemicals and

fertilizers)

Livestock (beef, pork,

chicken , dairy)

Grains (soybean,

maize, wheat, rice)

Agricultural equipment

(grain/protein technologies)

Supply chain management in Agribusiness

Agribusiness finance and operations

Business

development

and growth

strategies

Page 37: UKTI Brazil Webinar - How Agribusiness in Brazil Works

Agribusiness

ERNANI CARVALHO DA COSTA NETO

[email protected]

+55 51 3218-1355

+55 51 9730 5355

Questions