Wind turbines farm In Agribusiness
Modern,efficient and competitive,Brazilian agribusiness is a secure and profitable activity. With a diverse climate,regular rainfall,abundant solar energy and almost 13% of all fresh water available on the planet,Brazil has 338 million hectares of fertile and productive land,of which 90 million have not yet been explored.
Agribusiness is today the principle economic activity in Brazil and responsible for one in every three Reais (R$) generated in the country. It is also responsible for 42% of total exports and 37% of national employment. In the last years,few countries have had such significant growth in agribusiness on an international scale.
Brazil is one of the global leaders in aquaculture production and the exportation of its abundant yields. It is the first producer and exporter of coffee,sugar,alcohol and fruit juices. In addition,Brazil is the top-ranking country in the external sales of soy,bovine and poultry meats,tobacco,leather and leather goods. It is also the centre for cotton production and biofuels made from sugar cane and vegetable oil. Corn,rice,fresh fruits,cacao bean,nuts,swine and fish,are also the agribusiness highlights of Brazil.
According to the Ministry of Agriculture,the internal market yields a large variety of products in agribusiness,and the international market has presented accentuated growth in its consumption.
The most dynamic products of Brazilian agribusiness are soy,corn,wheat,meats,ethanol,ground soy,soy oil and milk. These products indicate an elevated potential for growth for the next few years.
The production of grains (soy,corn,wheat,rice and beans) should exceed the 139.7M tons in 2007/08 to 180M in 2018/19. This represents a growth of 40M tons from Brazil’s current yield. The production of meats (bovine,swine and avian) will increase by 12.6M tons. This will represent a growth of 51% in relation to the production in 2008. Three other products with an expected growth are sugar (over 14.5M tons),ethanol (37B litres) and milk (9B litres).
There will be a significant change in Brazil’s position in the global market. The relationship between Brazilian exports and global commerce shows that in 2018/19 Brazilian bovine exports will represent 60.6% of global commerce;swine exports will represent 21%;and poultry will represent 89.7%. These results indicate that Brazil will continue to hold its position of top global exporter of bovine and avian meat.
Although Brazil has shown strong increases in exportation over the last years,the internal market will be a major factor of growth. Of the projected increase in the production of soy and corn in the next 11 years,52% will be destined for internal consumption. Of the projected increase in the production of meats in the same period,50% will be destined for internal consumption. Thus,there will be dual pressure over the increase of national production given the simultaneous growth of the internal market and export demand.
In relation to other products,Brazil will see an improvement in the global marketplace,given its relationship with the quantity of exports and global demand. For soy,this relationship should exceed 40% in 2018/19 (from 36% in 2008);for soy oil,the increase will go from 63% to 73.5%;for corn,from 13% to 21.4%;and for sugar,from 58.4% to 74.4% in the same period.