Economic, Social and Environmental Aspects of Agriculture and Agribusiness in Brazil
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1 Economic, Social and Environmental Aspects of Agriculture and Agribusiness in Brazil Joaquim J.M. Guilhoto Department of Economics, FEA - University of São Paulo JSPS - FAPESP - March 15 th -16 th, 2013
2 AGENDA Introduction Family Agriculture Agriculture and Agribusiness Energy, Agriculture and Emissions Final Comments
3 INTRODUCTION
4 BRAZIL IN THE MAP 1
5 BRAZIL IN THE MAP 2
6 BRAZIL IN THE MAP 3
7 BRAZIL IN THE MAP 4
8 FAMILY AGRICULTURE
9 FAMILY AGRICULTURE Importance in absorbing the labor force and in producing food, specially direct for the self consume In some cases it is more directed to a social approach than to an economic one, taking into consideration its, sometimes, low productivity and low use of capital intensive techniques
10 FAMILY AGRICULTURE It reduces the rural exodus to the urban centers It has an important contribution on income generation
11 FAMILY AND BUSINESS AGRICULTURE IN BRAZIL
12 PRODUCTION EFFICIENCY OF FAMILY AND BUSINESS FARMS Technical efficiency estimates of representative family (left) and business establishments (right)
13 PRODUCTION EFFICIENCY OF FAMILY AND BUSINESS FARMS Family farmers presented, on average, low performance relatively to business farmers Also conditionally, considering factors related to human capital and structural conditions of production, the family character was related to lower technical efficiency Public policies aimed at increasing the competitiveness of the family farming can be done by improving their technical efficiency
14 PRODUCTION EFFICIENCY OF FAMILY AND BUSINESS FARMS Great importance of formal education and credit access Possibility of increasing technical efficiency is especially great for the Northeast region
15 AGRIBUSINESS
16 AGRIBUSINESS
17 COMPOSITION OF THE FAMILY AND NON-FAMILY AGRIBUSINESS IN 2006 GDP in 2006 Millions of 2009 R$ % GDP Family Agribusiness 207, % GDP Non- Family Agribusiness 468, % GDP Other Economic Sectors 2,147, % GDP Total 2,823, % GDP Family Agribusiness 7.3% GDP Non- Family Agribusiness 16.6% GDP Other Economic Sectors 76.1%
18 COMPOSITION OF THE FAMILY AND NON-FAMILY AGRIBUSINESS IN 2006 Millions of 2009 R$ GDP in 2006 Family - Crops Agribusiness % 132, % 74, % Non- Family - Crops Agribusiness 360, % Non- Family - Livestock Agribusiness 107, % Total Agribusiness 675, % Family - Livestock Agribusiness Non- Family - Livestock Agribusiness 16% Family - Crops Agribusiness 20% Family - Livestock Agribusiness 11% Non- Family - Crops Agribusiness 53%
19 COMPOSITION OF THE FAMILY AND NON-FAMILY AGRIBUSINESS IN 2006 GDP in 2006 Millions of 2009 R$ Family - Crops 37, % Family - Inputs to Crops Production 4, % Family - Crops Industry 41, % Family - Crops Distribution 49, % Family - Crops Agribusiness 132, % % GDP in 2006 Millions of 2009 R$ Non- Family - Crops 60, % Non- Family - Inputs to Crops Production 9, % Non- Family - Crops Industry 154, % Non- Family - Crops Distribution 135, % Non- Family - Crops Agribusiness 360, % % Family - Crops Non- Family - Crops Family - Inputs to Crops Production 38% 28% Non- Family - Inputs to Crops Production 38% 17% 2% Family - Crops Industry 3% Non- Family - Crops Industry Family - Crops Distribution 31% Non- Family - Crops Distribution 43%
20 COMPOSITION OF THE FAMILY AND NON-FAMILY AGRIBUSINESS IN 2006 GDP in 2006 Millions of 2009 R$ Family - Livestock 22, % Family - Inputs to Livestock Production 6, % Family - Livestock Industry 14, % Family - Livestock Distribution 31, % Family - Livestock Agribusiness 74, % % GDP in 2006 Millions of 2009 R$ Non- Family - Livestock 25, % Non- Family - Inputs to Livestock Production 9, % Non- Family - Livestock Industry 25, % Non- Family - Livestock Distribution 47, % Non- Family - Livestock Agribusiness 107, % % Family - Livestock Non- Family - Livestock Family - Inputs to Livestock Production Family - Livestock Industry Family - Livestock Distribution 42% 19% 30% 9% Non- Family - Inputs to Livestock Production Non- Family - Livestock Industry Non- Family - Livestock Distribution 44% 24% 24% 8%
21 AGRIBUSINESS IN THE MACRO-REGIONS Central West South Southeast Northeast North 100% 90% % 70% 60% 50% 40% 30% 20% 10% 0% Family Non- Family Agribusiness Central West South Southeast Northeast North
22 AGRIBUSINESS IN THE MACRO-REGIONS North Northeast Southeast South Central West Brazil Others Non- Family Family
23 100% 80% 60% % AGRIBUSINESS IN THE STATES 40% 20% 0% 100% 80% 60% 40% 20% 0% RO AC AM RR PA AP TO % % % MT MS GO DF 40% % % 12 RS SC PR 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% 0% MA PI CE RN PB PE AL SE BA SP RJ ES MG PIB dos outros setores PIB Agronegócio Não Familiar PIB Agronegócio Familiar
24 ENERGY, AGRICULTURE & EMISSIONS
25 BRAZILIAN ENERGY MIX
26 CO2 EQUIVALENT EMISSIONS Table 1 Percentage of CO2eq emission per country, GWP-100, 2005 Source Percentage of Global Emissions, 2005 Percentage of Global GDP, PPP, 2005 Percentage of Global Land Area China 16.36% 9.40% 6.43% U.S % 22.03% 6.15% European Union 12.08% 22.65% 2.65% Brazil 6.47% 2.77% 5.68% Indonesia 4.63% 1.24% 1.22% Russia 4.58% 2.97% 11.00% India 4.25% 4.41% 2.00% Japan 3.17% 6.78% 0.24% Germany 2.27% 4.53% 0.23% Canada 1.83% 1.98% 6.11% Source: World Resources Institute (2010), World Bank (2011).
27 CO2 EQUIVALENT EMISSIONS Figure 1 Global pattern of emissions of CO2eq, GWP-100, % 4% 3% Energy Agriculture 14% 67% Land- use change Industrial processes Waste management Source: World Resources Institute (2010)
28 CO2 EQUIVALENT EMISSIONS Figure 2 Brazilian pattern of emissions of CO2eq, GWP-100, % 2% 16% 58% 22% Energy Agriculture Land- use change Industrial processes Waste management Source: Ministry of Science and Technology (2010)
29 BRAZILIAN BIOMES AND POPULATION
30 AMAZON DEFORESTATION
31 AMAZON DEFORESTATION Cattle Soybean Sugar Cane
32 Cattle - head Year: 1974 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Cattle - head 4-50,000 50, , , , , , , , , , ,001-1,200,000 1,200,001-2,000,000
33 Cattle - head Year: 2008 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Cattle - head 4-50,000 50, , , , , , , , , , ,001-1,200,000 1,200,001-2,000,000
34 Soybeans - production Year: 1990 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Soybeans - tons 0-30,000 30,001-80,000 80, , , , , , , , ,001-1,100,000 1,100,001-1,800,000
35 Soybeans - production Year: 2008 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Soybeans - tons 0-30,000 30,001-80,000 80, , , , , , , , ,001-1,100,000 1,100,001-1,800,000
36 Sugarcane - production Year: 1990 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Sugarcane - tons 0-50,000 50, , , , , , ,001-1,000,000 1,000,001-1,800,000 1,800,001-3,000,000 3,000,001-5,300,000
37 Sugarcane - production Year: 2008 Source: Adapted from: PPM / IBGE Visão Tridimensional Legend Sugarcane - tons 0-50,000 50, , , , , , ,001-1,000,000 1,000,001-1,800,000 1,800,001-3,000,000 3,000,001-5,300,000
38 GHG EMISSIONS
39 DIRECT GHG EMISSIONS BY REGION AND SECTOR
40 GHG WHO IS RESPONSIBLE?
41 FINAL COMMENTS
42 FINAL COMMENTS Agribusiness is around 24% of the Brazilian Economy GDP, of which 31% is Family and 69% is Non-Family The Family Agribusiness is more directed to the production of goods to final consumption with a lesser degree of industrialization than the Non- Family Agribusiness The Family Agriculture can found in the spectrum from the subsistence level to the high tech level
43 FINAL COMMENTS The Southeast region in Brazil is responsible for 42% of the Brazilian Agribusiness GDP The Central West region, despite its high tech agriculture, has a share of only 9.8% of the Brazilian Agribusiness GDP and 16.3% of the Brazilian Agriculture GDP Given de importance o Agriculture and Agribusiness for the Brazilian economy, environment and social questions should and must be taken into consideration.
44 FINAL COMMENTS Thank You! guilhotojjmg.wordpress.com
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