The dynamism of Brazilian agriculture

Abstract

The Brazilian industrialization process was fundamental to modernize agriculture, creating in cities the demand for food and other inputs. Under this process, three agriculture policy instruments were put in place: subsidized credit, development of science and technology, and rural extension. In the period addressed, from 1975 to 2010, the five most important grains (rice, corn, beans, soybean and wheat) increased production by a yearly rate of 3.66%, and increased productivity by 2.95%. Soybean crops have been the flagship. From 1979 to 2009, beef production increased by 5.42% per year, pork 4.66%, and chicken 8.45%. This dynamic is related to the evolution of the domestic market and exports. Over the last years, sugarcane production increased approximately 9.0% annually. As a global model of agricultural efficiency, Brazilian total factor productivity for the period 1970–2006 increased by 2.27% per year. Agriculture and agribusiness exports generated a trade balance equivalent US$ 403 billion from 1997 to 2009, helping to balance Brazil’s foreign trade. Projections show that Brazilian agriculture and agribusiness have a great potential for growth, where the most dynamic products are soybean, chicken, sugar, ethanol, cotton, soybean oil and cellulose.