Brazil: Agriculture

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Brazil Agriculture Profile 2012

Reference Date: 20-May-2011

 


FOOD SECURITY SNAPSHOT

  1. Sowing of 2011 wheat is forecast to decrease

  2. Good outlook for 2011 maize and rice that is being harvested

  3. Exports of rice reached high levels in 2010/11 (April/May)

Area sown to 2011 wheat forecast to decline

The sowing of wheat for the 2011 agricultural season is in progress in the main growing areas in the south of the country. In the state of Parana, which produces 50 percent of annual wheat output, 30 percent of the sowing intentions have already been planted. The dry weather during May is benefiting fieldwork. However, official forecasts indicate a reduction in the area planted compared to the previous season as a result of the problems with commercialising the grain in previous years. Assuming a normal weather conditions this season, it is forecast that the 2011 production could reach 5 million tonnes, 17 percent less than 2010.

Increase in 2011 maize and rice production

Harvesting of the main season 2011 maize crop is well advanced in the central and southern production areas. In the state of Rio Grande do Sul 80 percent of the cultivated area has been gathered and 96 percent in that of Parana. Planting of the 2011 second maize season in the central-western growing areas (40 percent of the annual production) was delayed due to late soybeans harvest and excessive rains in January, which could negatively affect potential yields. Overall, the total area planted to maize is estimated 4 percent higher than last year and, weather during the growing seasons have been generally favourable for crops development. The 2011 aggregate maize output (main and second season) is forecast at near 58 million tonnes, a slight increase from the good level of last year. Harvesting of the irrigated rice is about to be completed in the main southern growing areas. Following adequate water supplies the area planted is estimated to have increased by 4 comparing to the previous season and production is forecast 13.5 million tonnes, 15 percent up from 2010.

Record maize exports in 2010/11 (March/February)

According to official data, exports of maize in marketing year 2010/11 (March/February) are forecast at a record level of 12 million tonnes. The increase in exports mainly reflects higher prices in the international markets and government-supported auctions.

Prices of yellow maize and wheat flour at high levels

In the capital city market of Sao Paulo, prices of yellow maize and wheat flour in April 2011 were 75 percent and 21 percent respectively higher than at the same time last year. Prices of these grains have followed the trend in international markets, increasing since mid-2010. High domestic demand for feed is also supporting prices of maize. By contrast, prices of rice (2nd quality) in April were 19 percent below their levels a year earlier, after having sharply decreased last month with the 2011 harvest.

Reference Date: 2-March-2011


FOOD SECURITY SNAPSHOT

  1. Planting of the 2011 summer crops is concluded, prospects mostly favourable so far

  2. Wheat harvest ended confirming an overall record 2010 cereal output

  3. Wheat and maize prices rising, rice stable

Planting concluded for the main 2011 summer crops, prospects mostly favourable so far

The planting of the summer crops of maize, soybean and irrigated-rice for harvest in 2011 was concluded in December 2010. Rainfall received during December and early January have improved soil moisture conditions in most areas of Rio Grande do Sul state, where crops were suffering from water stress due to earlier low and irregular rainfall. In the other states the rainfall has been favourable for the planting of summer crops.

The total area planted to maize is estimated at 7.3 million hectares, 3.7 percent below the previous year. Maize planting was delayed due to the rainfall irregularities mainly in Rio Grande do Sul state, where some losses have been reported in parts. However in Parana, Minais Gerais and Goias states the development of the crop is reported to be from good to very good. Soybean plantings are estimated at 24.1 million hectares, a new record, and 2.6 percent above the area planted during 2009/10 crop season. The area planted to paddy is estimated at 2.7 million hectares, slightly below the area planted during 2009/10 crop season. Prospects are good for the irrigated paddy crop (80 percent of national total) in the centre/south of the country as a result of good water supply in the dams and favourable dry planting weather. Planting of rain-fed paddy has begun in north/north-eastern parts of the country.

Wheat harvesting ended confirming an overall record cereal output in 2010

Harvesting of 2010 wheat crop has ended in all producing states. Early estimates point to a near record production of 5.9 million tonnes, 17 percent above 2009. During 2010 crop season, there was reduction in wheat area planted but this was more than compensated by a sharp increase of wheat yield attributable to favourable weather conditions.

In aggregate, total cereal production in 2010 was a record.

Maize price is raising, wheat and rice are stable

A domestic price of maize has been rising in recent months influenced by the increase in prices of these cereals in international markets. In the Sao Paulo market, wholesale wheat prices are stabilized in February 2011, due to the arrival of the new 2010 harvest. The increase in wheat flour prices was much larger, at 25 and 27 percent respectively. The sharpest increase was for maize which has risen by 42 percent since August. By contrast the wholesale price for rice in the Sao Paulo market has remained relatively stable.

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Increased moisture needed for germination of main summer crops

During September 2010, generally below average to average rainfall conditions prevailed over the central and southern states of Brazil. Locally severe water deficits were recorded in the states of Mato Grosso do Norte, Rio Grande do Sul and Parana. Overall precipitation values were in line with seasonal values and favourable in the main cereal cropping season over the North-eastern states. In October, generally wetter weather prevailed over the key producing states but locally increased humidity is required for germination of the newly planted crops.
 
Cereal output in 2010 estimated to be about 11 percent above previous year’s level
Harvesting of the main season cereal production is complete in the southern main states while it is about to start in the North-eastern states. According to official estimates the cereal harvest in 2010 is expected to be the highest on record, exceeding the 2009 output by more than 11 percent, although the area harvested has slightly decreased. Following the bumper harvest of 2010, maize exports in 2010/11 are forecast at a record 9.5 million tonnes.

Wheat harvest is already underway in the states of Parana, Goias, Minas Gerais, and in the Federal District while crop development is delayed in Rio Grande do Sul and Santa Catarina. Yield estimates in the states of Parana and Sao Paulo indicate a considerable increase compared to the previous year that was affected by excessive rainfall during last crop maturing stages. Estimates point to a 2010 wheat production of more than 5.3 million tonnes, 7 percent higher than the output obtained in 2009 and significantly above average.

Rice harvesting is complete in the Northern producing states. Erratic rainfall, during the cropping season, affected the mainly rain-fed production. The output in 2010 is estimated to be slightly more than 11 million tonnes, almost 11 percent below the 2009 crop and 7 percent below the last five years average.
 
Planting of main season maize and rice is underway
Sowing of the main maize crop is currently underway in the states of Paraná, Rio Grande do Sul, Goias and Minas Gerais. Irregular rainfall, either scarce or locally excessively abundant, is slowing down sowing operations. Planted area so far accounts only 50 percent of what was planned at the beginning of the cropping season. This may delay the planting of the second maize cropping season which is scheduled to start in January.

Planting of the 2011 rice crop has also started recently in the central and southern states with favourable conditions and a slight increase in planted area compared to the previous years.

Optimum water availability in the watersheds where irrigated rice is produced (accounting for approximately 80 percent of the total domestic production) particularly the central and southern regions combined with the use of high yielding varieties augurs well for crop development.
 
Wheat prices show a sudden increase in September
In Sao Paulo, wheat and maize wholesale prices have shown a relatively stable trend since September 2008. However, in September 2010, wheat prices have shown a jump of about 11 percent compared to the previous month. Still prices remained at the same level of September 2009 and 42 percent below the peak recorded in May 2008. The increase in wheat prices in September may be a reflection of the rise in international prices.

Following a significant decline from their record levels in June 2008, rice prices exhibit seasonal fluctuations from January 2009. In the last three months, starting from July, quotations have remained stable at the level of BRL1.5 /Kg.
 
Agriculture
Brazil is a world leader in the production of livestock. Nearly one-fifth of its workforce is employed on farms. Nearly one-third of the land is presently used for farming and ranching. The opening of frontier lands for farming during the last few decades has been largely responsible for increases in total farm output, as the modernization of farming methods and equipment has been slow.
Brazil is the world's leading producer of coffee, oranges, papayas, sugarcane, and sisal, and is a major producer of bananas, cacao beans, cassava, castor beans, pineapples, cocoa, palm kernels, cotton, tobacco, soybeans, corn, and dry beans. In addition, a great variety of other crops are produced. Except for wheat, which is imported in large amounts, Brazil is virtually self-sufficient in food.
Commercial plantations, called fazendas, are responsible for most of the production of export crops. Other production is mainly by subsistence farmers, who grow such crops as rice, beans, corn, and cassava for their own use. Much of the farming is of the slash-and-burn type—trees are cut and burned and the land is then cultivated as long as good crops can be produced. When the plot becomes unproductive the process is repeated elsewhere.
 
Although crops are highly important in Brazil, most of the farmland is used for grazing. Cattle are raised extensively south of the Amazon lowlands and are one of the nation's chief sources of wealth. The best grazing land is in the far south, in the states of Rio Grande do Sul and Santa Catarina. Brazil ranks among the top five nations in the number of cattle raised for meat. Large numbers of chickens and hogs are also produced. Of less significance is the raising of sheep and goats.
 
Forestry and Fishing
Industries using the resources provided by Brazil's vast forests have enormous potential, but are not highly developed. Its chief forest product is timber from a tree called the Parana Pine. A lot of timber is made into charcoal— a major fuel in Brazil. Other forestry products include timber, pulpwood, firewood, fruits, oil-bearing seeds, gums, resins, waxes, fibers, and nuts. The rubber tree is native to equatorial Brazil, and sizable amounts of natural rubber are produced. Forests also provide wood for making charcoal, a major fuel in Brazil. Some of the forest products, including lumber, castor beans, and Brazil nuts, are exported.
Large-scale clearing of the Amazon rain forest began in the 1960's. Worldwide environmental concern over the destruction of this diverse habitat led to a decrease in clearing during the 1990's.
Commercial fishing is practiced only to a small extent, though fish are abundant off the coast and in the Amazon River. The richest fishing grounds are in the south off the coast of Rio Grande do Sul state. Bonito, mackerel, hake, porgy, red snapper, swordfish, tarpon, and tuna are among the fish caught. Lobster and shrimp are taken commercially near the mouth of the Amazon River. Virtually all the catch is domestically consumed.
 
Brazil is endowed with vast agricultural resources. There are two distinct agricultural areas. The first, comprised of the southern one-half to two-thirds of the country, has a semi-temperate climate and higher rainfall, the better soils, higher technology and input use, adequate infrastructure, and more experienced farmers. It produces most of Brazil's grains and oil seeds and export crops. The other, located in the drought-ridden northeast region and in the Amazon basin, lacks well-distributed rainfall, good soil, adequate infrastructure, and sufficient development capital. Although mostly occupied by subsistence farmers, the latter regions are increasingly important as exporters of forest products, cocoa, and tropical fruits. Central Brazil contains substantial areas of grassland with only scattered trees. The Brazilian grasslands are less fertile than those of North America and are generally more suited for grazing.
 
The history of agriculture in Brazil in the colonial period and beyond is intertwined with the history of slavery in Brazil. Since the abolition of slavery in 1888 by the Lei Áurea ("Golden Law"), the practice of forced labour (trablho escravo) has remained commonplace in agriculture.
 
During the dictatorship period, agriculture was neglected and exploited as a means of resources for the industry sector and cheap food for the urban population. Until late 1980s export and prices were controlled, with quotas on exports. This has changed since the early 1990s.
Brazilian agriculture is well diversified, and the country is largely self-sufficient in food. Agriculture accounts for 8% of the country's GDP, and employs about one-quarter of the labor force in more than 6 million agricultural enterprises. Brazil is the world's largest producer of sugarcane and coffee, and a net exporter of cocoa, soybeans, orange juice, tobacco, forest products, and other tropical fruits and nuts. Livestock production is important in many parts of the country, with rapid growth in the poultry, pork, and milk industries reflecting changes in consumer tastes. On a value basis, production is 60% field crop and 40% livestock. Brazil is a net exporter of agricultural and food products, which account for about 35% of the country's exports.
 
Half of Brazil is covered by forests, with the largest rain forest in the world located in the Amazon Basin. Recent migrations into the Amazon and large scale burning of forest areas have placed the international spotlight on the country and damaged Brazil's image. The government has reduced incentives for such activity and is beginning to implement an ambitious environmental plan - and has just adopted an Environmental Crimes Law that requires serious penalties for infractions.
 
Brazilian tropical climate is not very suitable for growing wheat, this problem is reflected on the fact that two of Brazil's coldest states, Paraná and Rio Grande do Sul account for over 90% of wheat production.Despite the internal production Brazil has to import around US$ 700 million in wheat every year.
 
Sugarcane
Brazil during its early colonial time depended heavily on sugarcane for its economic well-being. Today Brazil leads the world in sugarcane production.
Sugarcane production is concentrated in 6 brazilian states: São Paulo, Minas Gerais, Mato Grosso, Mato Grosso do Sul, Goiás and Paraná. Those 6 states are responsible for 82% of the total production.
Brazil harvested 558 million tonnes of sugarcane in 2007, that represented a growth of 17.62% over 2006. For 2008 Brazil should harvest at least 607 million tonnes, of that total 89% or 540 million tonnes of sugarcane will used for sugar and ethanol production, the other 11% will be used for cachaça and rapadura production, as animal feed and as seeds.Ethanol production in 2008 is predicted to reach at least 26.4 billion litres. CONAB (Companhia Nacional de Abastecimento) said that in 2007 sugarcane cultivated land increased by 12.3%, to 69,000 square kilometres. In 2006 62,000 km² of land was devoted for sugarcane in Brazil.