Brazil will be the world's largest food producer
Currently, Brazil is the world leader in the production of 34 agricultural commodities and, at the time when the 2023 crop is being planted, the country is preparing to lead the world in food production. Meanwhile, the European Food Safety Authority (EFSA) has given the go-ahead for marketing insect-based foods to humans.
The US is still the world's largest food producer. However, Brazil has more arable land that can be incorporated into food production than any other country in the world. And that's without cutting down a single tree. Degraded pastures can also be transformed into crops.
For the next harvest, CONAB predicts that Brazilian production will exceed 312 million tons of soy, corn, cotton, rice and wheat. This production is 15% higher than in the past season, when Brazilian farmers harvested 271.4 million tons of grain.
On the other hand, like US producers, Brazilians are facing higher input costs. For soybeans, some farmers are seeing a 40% to 50% increase over last year. For corn, costs rose by about 30%.
By Aimore Dias
The content that I will post now was extracted from the websites of the greatest authorities in Brazilian Agribusiness. At the end of each article I will post the source and link to each organization.
Good reading!
The Vision-of-the-Future of Brazilian Agriculture
The Vision-of-the-Future of Brazilian Agriculture platform gathers and synthesises structural analyses of the food, fibre and bioenergy production environments considering a long-term horizon. Embrapa counts on these inputs for decision-making and elaborating strategic planning. Players in Brazilian agriculture use it for guiding their actions. It is coordinated by Embrapa’s Secretariat of Intelligence and Strategic Affairs and is the fruit of the efforts of more than 300 specialists and leaders in Brazilian agriculture, and the analysis of 126 documents and discussions from 37 events. The results are organised into eight megatrends. This Executive Summary is but a synopsis so it is important to consult the complete version of the document available at www.embrapa.br/visao-de-futuro.
Source: Embrapa
Brazil has the largest Natural Ecosystem in the World!
Over the last 25 years, the federal and state governments have legally allocated more than 37% of the national territory to conservation units, indigenous lands, quilombola communities and agrarian reform settlements. These numbers were stratified and categorized according to their destination, where the provision of these data being the responsibility of the competent bodies. According to data collected in April 2017 from the Ministry of the Environment (MMA), 1,871 conservation units (PAs) occupied 154,433,280 ha, representing 18% of Brazil (including Environmental Protected Areas - APAs) or 13,1%, when we disregard the APAs. In Brazil, in most cases, PAs exclude human presence, while in Europe, Asia and the United States there may be agriculture, villages and various activities in national parks, without evoking the extensive tourist visitation.
SOURCE - Embrapa
https://www.infoteca.cnptia.embrapa.br/infoteca/bitstream/doc/1103476/1/5022.pdf
Agricultural production can more than double in areas that are now pastures
The area occupied by agricultural production can more than double in the Cerrado and in the Amazon, without any vegetation having to be removed, but for that, livestock needs to be intensified to keep up with the growth rate projected for demand. This is what concludes a study by six Brazilian and American researchers based on data from the Rural Environmental Registry (CAR) published in the magazine “Sustainability”.
With 31 million hectares occupied by agricultural crops in 2017, the two biomes then had 74 million hectares of land already deforested and suitable for cultivation. However, of that portion, 64 million hectares were already pasture.
The researchers outlined four scenarios for the expansion of agricultural land in Brazil, considering both the possibilities provided for in the Forestry Code and the more restrictive alternative, zero deforestation. And even in this context, they saw room for the advancement of agriculture.
For agricultural expansion not to deplete any area of native vegetation in the Cerrado or the Amazon, and to advance over pasture areas, the extension occupied by livestock could be displaced by another 47 million hectares, which is equivalent to the area that has already been deforested in these biomes but that are not suitable for agriculture. This is a smaller area than that currently occupied by pastures in these biomes.
Source - Sociedade Nacional de Agricultura
https://www.sna.agr.br/producao-agricola-pode-mais-que-dobrar-em-areas-que-hoje-sao-pastagens/
Brazil world leader in sugarcane and ethanol knowledge and technology
Brazil is the largest producer of ethanol from sugarcane in the world and occupies the leadership in technology for its production. The advances in technology have meant that its productivity is outstanding and the costs of production much lower than those of its international competitors. This leadership is due to the long work of many years undertaken by researchers in institutions of higher education and research and in private enterprises, which has resulted in a valuable baggage of knowledge and technology on sugarcane and its derivatives and on the process of ethanol manufacture. The research has dealt with a variety of themes, such as the genetic improvement of the plant, combating pests, agricultural and harvesting techniques, impact of the cultivation on the environment, and technologies concerning the manufacture of ethanol, including hydrolysis and fermentation.
SOURCE - fapesp
https://fapesp.br/publicacoes/livro_etanol_ing.pdf
Brazil can surpass India in grain production in 2023
Official data from the United Nations Food and Agriculture Organization (FAO) indicates that, in the previous years, the country remained the fourth largest world producer of grains and the second top exporter. However, when it comes to soybeans, Brazil is the leading producer and exporter, occupying 50% of the world trade of the crop. Coffee and sugar break records in production. The biggest challenge is to increase the production of wheat, corn, barley and fish.
Brazil remains in fourth place in the world production of grains (rice, barley, corn, soybeans and wheat). A recent study by Embrapa, “O Agro no Brasil e no Mundo” [Agriculture in Brazil and in the world], 2022 edition, indicates that the country reached a production of 250 million tons in 2021. The United States and China are the major leaders, followed by India and Brazil. However, in 2023, the prediction is that Brazil surpasses India and becomes the third world producer.
SOURCE - Embrapa
The list of the 10 most exported products by Brazil this year
The resumption of the market has already started and is being felt in Brazil, driven by the Rate Of Exchange that favors exports and, not having a negative impact on imports, take into account that ships are leaving Brazilian ports without space. On the other hand, Comercio Internacional requires buyers and sellers across borders and, currently, the fall in the economy is global, felt by all countries.
Luckily, the economic crisis hit the supply and not so much the demand, in this line it is presumed to believe that the resumption is possible on the “V” curve, much faster than the “U” curve as expected. I refer to the resumption in Brazil.
SOURCE - New Hub
https://www.newhubnvocc.com/the-list-of-the-10-most-exported-products-by-brazil-this-year/
Agribusiness in Brazil: an overview of the importance, opportunities and challenges in the country
The changes and investments made over the last 40 years have transformed agribusiness in Brazil into one of the pillars of the country's economy and development.
In addition to its local impact, the sector also brought protagonism to Brazilian agricultural production in the international scenario. As a result, Brazil has consolidated its position as one of the main players in the global food production and export market.
To give you an idea, according to the Brazilian Agricultural Research Corporation (Embrapa), in 1977, the country produced around 46 million tons of grain.
In comparison, the National Supply Company (Conab) estimates that in the 2022/23 harvest alone the country will produce over 300 million tons of grain. This means that in the last 40 years, Brazil has increased its grain production by more than 500%.
Source - blog.climatef ieldview.
https://blog.climatefieldview.com.br/agronegocio-no-brasil
Grain quality is a relevant parameter for marketing and processing a record harvest
With the forecast of harvesting 312.5 million tons of grain, Brazil is confirmed worldwide as a major player in agribusiness, however, it is necessary to guarantee the quality of the crop to obtain greater profitability. Quality is a very relevant parameter for commercialization and processing of the grain, which can affect the final value of the product.
To meet the quality standards required by the industry and trading companies, it is essential to determine the moisture content and damage of the grains. The greater the volume of grain, the more efficient the planning of harvesting and storage of production must be. Therefore, all care must be taken so that problems do not occur with the grains. Among the main ones are the problems caused by excess moisture. If the soybean harvest is carried out with a water content above 14%, there is a need for drying to obtain a better price at the time of marketing.
Source - Agro Link
With good productivity, the 2022/23 grain harvest is estimated at 313.9 million
tons
The good yields verified by the National Supply Company (Conab) have allowed for an expected production of 313.9 million tons in the 2022/23 harvest. This is what reveals the 8th Survey of the current season published this Thursday (11) by the state-owned company. If confirmed, the volume represents a growth of 15.2% compared to 2021/22, which represents around 41.4 million tons more, setting a new record in the historical series.
The estimated average performance of the country's crops also tends to be the best ever recorded, being projected at 4,048 kilograms per hectare, and exceeds the estimated average for the 2016/17 crop year. “This yield is reached even in a crop year under the influence of the La Niña phenomenon, especially at the beginning of the season, but on a smaller scale. If we compare with the past season, the adverse weather had an impact in Rio Grande do Sul, Paraná, Santa Catarina and part of Mato Grosso do Sul. In this cycle, the effects were more concentrated in the state of Rio Grande do Sul”, analyzes the Crop Monitoring manager, Fabiano Vasconcellos. Allied to the good productivity of the field, the area should also increase by 4%, reaching 77.5 million hectares.
Source - Conab
With innovation and technology, Brazil emerges as a dominant player in global agriculture
With innovation and technology, Brazil emerges as a dominant player in global agriculture.
The UN projects that the global population will reach 9.7 billion by 2050, a 35% increase from today. To support the growing population, global agricultural production must double. As the fifth largest country in the world and with 22% of the planet's arable land, Brazil will play a key role in the future of agriculture.
Over the past 40 years, Brazil has gone from being a food importer to becoming one of the largest producers and exporters in the world. Brazil is now the largest producer and exporter of beef in the world. In addition, it currently ranks first in global soybean production and export and chicken export. Other important crops and livestock in Brazil include cotton, corn, pork, milk, sugar cane and coffee.
Production explodes due to improvements in Brazil's agricultural technology and agricultural efficiency
Brazil achieved a significant increase in production with a minimal increase in agricultural area. Research and innovation made this possible. Seed technology, crop rotation, dual cropping, state-of-the-art machinery and precision agriculture improve production and efficiency. Brazilian farmers also use crop protection and fertilizers to maintain high yields. Investment in tropical agricultural research and agrotechnology is strong, suggesting that Brazil's production and efficiency will continue to grow in the coming years.
The increase in agricultural production and exports has positioned Brazil to become a major player in the global market. In 2013, Brazil overtook the United States as the world's largest exporter of soybeans. US soybean prices hit record lows, while soybeans sold for reais are approaching record highs. Competition has shifted from the Northern Hemisphere to the Southern Hemisphere, a trend that is likely to continue.
Agribusiness was responsible for 21.4% of Brazilian GDP and 19.5% of jobs in 2020. According to World Bank data, GDP grew 9.11% in the last 40 years, with an average annual growth rate of around 5% since 1995. GDP growth has contributed to reducing poverty and hunger and improving the quality of life of Brazilians. Agricultural exports positively impact Brazil's trade balance, offsetting deficits in other economic sectors and providing an inflow of foreign exchange (OECD-FAO Agricultural Outlook, 2015). In addition, the agricultural boom has a positive effect on agricultural and livestock land prices. Prices generally increase in times of favorable food commodity prices and remain stable during periods of lower commodity prices.
SOURCE - S&P Global
https://www.spglobal.com/commodityinsights/en/ci/research-analysis/innovation-technology-brazil-emerges-dominant-agribusiness.html
10 megatrends that will revolutionize the beef production chain
Brazilian beef exports may break another sales record this February, with the recovery of the Chinese market. The estimate by Agrifatto, a market consultancy led by Lygia Pimentel, a columnist for Forbes Agro, forecasts a volume of around 140,000 tons shipped, for US$ 800 million (R$ 4.1 billion at today's quotation, 25th). In the last five years, in volume, the best performance occurred in 2019, with 138.9 thousand tons exported. In revenue, the highest was last year: US$ 559.7 million (R$ 2.9 billion).
Meat exports tend to remain heated, experts say, while greater domestic consumption – Brazilians are big fans – will depend on the population's purchasing power. Cicarne (Beef Intelligence Center), in the most recent technical document, prepared last year, makes an X-ray on the future of the chain.
Source - Forbes Agro
Brazil will account for 25% of global beef exports in 2023
Brazilian exports of beef should exceed 3 million equivalent tons of carcass this year, projected this Tuesday (11) the United States Department of Agriculture (USDA). The volume is almost 4% greater than that shipped last year and represents practically 25% of the beef protein traded between countries (12.1 million
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Source - Valor Econônico
Attractiveness of cattle framing in Brazil
Brazilian beef exports (in natura) hit a record in 2019. This scenario, along with high dollar rates, resulted in a record revenue in Brazilian currency. The higher competitiveness, which is related to lower production costs compared to competitors, is one of the factors that favored the Brazilian activity to meet the high international demand. Moreover, the supply decrease in global terms, with consequent higher values, also favored sales from Brazil throughout 2019.
COSTS – Data presented at the last Agribenchmark Beef Conference (an annual event that gathers researchers to compare and discuss zootechnical and economic data regarding cattle farming from several countries), in 2018, in Africa, show that the cattle farming in Brazil stands out in the global comparison, because it presents one of the lowest costs to produce one kilo of beef.
Source: Esalq
https://www.cepea.esalq.usp.br/en/opinion/attractiveness-of-cattle-farming-in-brazil.aspx
Brazilian beef quality
Brazil is one of the most important beef producers in the world, the result of decades of investment in technology that has raised not only productivity but also the quality of the Brazilian product, making it competitive and reaching the market of more than 150 countries. countries.
In 2015, the country had the largest herd (209 million head), the second largest consumer (38.6 kg/inhabitant/year) and the second largest exporter (1.9 million tons) of beef in the world, having slaughtered more than 39 million heads. 80% of the beef consumed by Brazilians is produced in the country itself - the industrial park for processing has the capacity to slaughter almost 200 thousand cattle per day.
Beef exports already represent 3% of Brazilian exports and a turnover of 6 billion reais. It represents 6% of the Gross Domestic Product (GDP) or 30% of the Agribusiness GDP, with a turnover of more than 400 billion reais, which has increased by almost 45% in the last 5 years.
Source - Embrapa
https://www.embrapa.br/qualidade-da-carne/carne-bovina
Kuwait opens market for Brazilian beef
The Ministry of Agriculture, Livestock and Supply (Mapa) was informed this Thursday (13) that Kuwait will start importing beef from Brazil. "One more good news about the opening of another market for Brazilian beef: Kuwait, the country we visited in September, when we started this conversation. Today came the good news of another market for Brazilian beef," said the minister. Teresa Cristina.
Kuwait was one of the countries the minister visited in September last year, during her mission to the Middle East. Currently, chicken meat (in natura) is the Brazilian agricultural product most purchased by Kuwait. In 2018, 122,945 tons were imported, equivalent to US$ 185.7 million.
Source - Ministério da Agricultura, Pecuária
Vietnam may open beef market to Brazil, says minister
When taking stock of the mission to Asia, Minister Tereza Cristina (Agriculture, Livestock and Supply) informed this Thursday (23) that Vietnam has indicated that it may open the beef market to Brazil in the second half of this year. In Hanoi, the minister met, on the 17th, with the prime minister of Vietnam, Nguyen Xuân Phúc.
According to the minister, the Vietnamese showed great interest in buying live cattle. “They want Brazilian beef,” she said. “It's a new market opening up, a country that has 100 million people,” she added.
According to the minister, on the other hand, Vietnam wants to export shrimp caught in the sea and expand the sale of panga fish to Brazil.
Source - Ministério da Agricultura, Pecuária
Exports can boost beef
Minerva Foods released its performance in the first quarter of 2023, showing a net profit of R$114 million, which represents a decrease of 0.5% compared to the same period of the previous year. Although the analysis by BTG Pactual considered the result weak, with an Ebitda below the bank's estimate and a reduction of 18% compared to the previous year, the bank maintains its recommendation to buy the share, with a target price of BRL 15.00 and a 64% upside potential.
BTG Pactual points out that Minerva Foods had a FCF burn (cash flow) of R$ 608 million in the first quarter of 2023, due to the consumption of working capital of R$ 841 million, which generated an increase of 15% in the quarterly
debt, totaling R$7.7 billion. However, the bank points out that the company may have benefited from lower cattle acquisition costs, by financing its own suppliers, which may have positively impacted margins, although it had a negative effect on ROIC (return on invested capital).
Source - Agro Link
Five countries hold 67% of production among the largest beef producers in the world
A report released by the USDA at the opening of this year points out that total beef production by the main producing countries tends to show a slight drop of 0.4% during 2023. The five largest producers, in turn, may show a drop rate more accentuated, around 1.5%.
The United States remains the largest producer with just over 12 million tons produced, equivalent to 20% of world production. However, it points to an annual drop of more than 4%.
Brazil, in second position, will produce almost 10.6 million, increasing its volume by 2% and representing 18% of the globalized total. China, the third largest producing country, may increase its annual volume by more than 3%, while the European Union and Argentina will decrease their volumes.
The group of five countries has a volume of almost 39.7 million tons, accounting for 67% of the total beef produced among the largest producing countries in the world, according to the report.
Source - Pecsite
The 40 countries that produce the most beef
Beef is delicious in all forms, from burgers to steaks to meatloaf, and is a protein loved around the world. But how much beef is consumed in the world each year? It is estimated that around 130 billion pounds of beef were consumed in 2020! Which country eats the most beef? The Organization for Economic Cooperation and Development reports that the largest beef-consuming country is the United States, which consumed about 12,900 metric tons in 2021. That equates to about 57 pounds of beef per capita! However, Argentina surpasses America as the country that eats the most beef per capita - Argentines devour around 30 kilos of beef per person! So where does all this meat come from? Here's a look at some global beef production statistics from Matt Morgan's Meatloaf Recipes that show the world's top beef producing countries.
Source - Meatloaf
https://www.meatloaf.pro/the-40-countries-that-produce-the-most-beef/#:~:text=The%20largest%20producer%20of%20beef,beef%2C%20second%20only%20to%20China
What are the top 10 beef producers in the world?
Based on data from the Food and Agriculture Organization (FAO), the United Nations Food and Agriculture Organization, the profile released an interactive graphic originally produced by the Investors Brazil project team. In the art, it is possible to see how Brazilian beef production jumped from just over 1.3 million tons in 1961 to almost 10 million last year.
In the ranking, Brazil appears in second place since 1992, a year after the then holder of the post, the Soviet Union, collapsed and dissolved. In addition to maintaining the position, the country has approached the still leader United States, which in 2021 surpassed the mark of 12 million tons in beef production.
Source - Canal Rural
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