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2021

ATLAS OF BRAZILIAN AGRIBUSINESS Brazil is one of the leaders in the production and export of food,
fiber and energy, with potential for expansion in the sector. All

A SUSTAINABLE
of this keeping most of its biomes intact and its commitments to
international agreements for the environment preservation. With
pioneering spirit and innovation in tropical technologies, there will

JOURNEY
be no lack of opportunities for an increasingly entrepreneurial Brazil,
with critical and technological capacity to position itself as the
greatest power in sustainable agricultural production in the world.

The Atlas of Brazilian Agribusiness: A Sustainable Journey is not


intended to exhaust the debate on agriculture and the environment
in Brazil. Its purpose is to present data and facts, highlighting how
innovation and an integrated approach in the field has contributed to
sustainability.
INTRODUCTION CROPLIFE BRASIL
The world knows little about Brazil. When CropLife Brasil (CLB) is an association that brings together specialists,
it comes to agribusiness sustainability, institutions and companies that work in the research and development of
even less is known. It is necessary to technologies in four essential areas for sustainable agricultural production:
clarify to both Brazilians and foreigners germplasm (seedlings and seeds), biotechnology, chemical pesticides
that the development of Brazilian and biological products. Based on scientific data and information, CLB
agribusiness was not, is not now and works for the growth of Brazilian agribusiness, contributing to the
will not be antagonistic to sustainability
increased supply of food, fiber and clean energy. By generating new and
and environmental protection. In about
better technologies, our sector helps farmers to face the challenges of
50 years of development, agribusiness
producing food, in quantity and with quality.
has become the most vibrant economic
activity in Brazil, producing cheaper, higher
quality and safer food for more than 160
countries. All of this was done keeping 66%
of Brazilian biomes intact, maintaining the
commitment to international agreements CHRISTIAN LOHBAUER
to preserve the environment, reducing CEO
greenhouse gas emissions, protecting
biodiversity and investing in innovation and
increased productivity.

Croplife Brasil produced the Atlas of Brazilian Agribusiness: A Sustainable


Journey with the purpose of bringing data and facts that prove the sustainable
trajectory of agribusiness and its importance for the economic and social
development of Brazil.

In addition, it presents information demonstrating the central role the country


plays in sustainability by producing safe and cheap food for the world. Brazil
is a democracy, has organized institutions and lives under the rule of law. It
has a secular history of agricultural production and a society attentive to
sustainable development issues.

The challenges are huge. The continental territory requires work and
commitment from public and private authorities to enforce the Forest Code,
one of the most complete environmental legislation on the planet.

The Atlas of Brazilian Agribusiness: A Sustainable Journey is not a document


intended to exhaust the debate on agribusiness and the environment in Brazil.
On the contrary, its purpose is to serve as the beginning of a process that
incorporates increasingly detailed information on all aspects of sustainable
development and food production in the country. Whenever possible, the data
will be updated and expanded.

Producing safe food with sustainability is a Brazilian vocation.


ATLAS OF BRAZILIAN AGRIBUSINESS:

A SUSTAINABLE JOURNEY
chapter 1 chapter 3
BRAZIL: NUMBERS, HISTORY AND INSTITUTIONS AGRICULTURE:
- BRAZIL IN THE WORLD 05 SOCIAL AND ENVIRONMENTAL IMPACTS
- BIOME DIVERSITY 06 - 66% OF BRAZILIAN TERRITORY IS OCCUPIED BY NATIVE VEGETATION 42
- A SMALL PART OF A LONG HISTORY 08 - THE EUROPEAN LAND USE IS VERY DISTINCT FROM THE BRAZILIAN ONE 44
- AGRICULTURAL RESEARCH: WHERE IT ALL BEGAN 10 - ILLEGAL DEFORESTATION IS NOT A RULE IN BRAZIL 45
- ENVIRONMENTAL LEGISLATION 11 - 49% OF THE BRAZILIAN AMAZON IS PRESERVED BY LAW 46
- 52.5% OF THE CERRADO BIOME IS COVERED BY NATIVE VEGETATION 48
- BRAZILIAN AGRICULTURE PRODUCERS FOLLOW STRICT ENVIRONMENTAL 50
REQUIREMENTS
chapter 2 - RECOGNITION FOR THOSE WHO PRESERVE NATURE IS ALREADY A 51
SUSTAINABLE AGRICULTURAL PRODUCTION REALITY IN BRAZIL
- LOW CARBON AGRICULTURE IS AN OFFICIAL PROGRAM 53
- AGRICULTURAL PRODUCTION HAS GROWN UP TO 5 TIMES IN THE LAST 40 YEARS 15 - BRAZILIAN AGRIBUSINESS HAS BEEN CONTRIBUTING TO MITIGATE 57
- A COUNTRY OF DIVERSIFIED PRODUCTION 17 CLIMATE CHANGE
- BRAZIL IS A GLOBAL LEADER IN THE USE OF RENEWABLE ENERGY 18 - BRAZIL HAS THE LARGEST SAFE DISPOSAL PROGRAM FOR CROP PROTECTION 59
- USE OF ETHANOL IN BRAZIL REDUCES CO² EMISSIONS 19 PRODUCTS PACKAGING IN THE WORLD
- PLANTED FORESTS ARE THE MAIN SOURCE FOR VARIOUS PRODUCTS IN BRAZIL 20 - BRAZILIAN AGRIBUSINESS ENGAGES MANY PEOPLE 61
- TECHNOLOGY HAS INCREASED AGRICULTURAL PRODUCTION AND SAVED AREA 22 - ESG IN BRAZILIAN AGRIBUSINESS 63
- MULTIPLE CROPPING IN THE SAME PIECE OF LAND 23
- FERTILIZERS INCREASE THE YIELD OF PLANTS IN THE FIELD AND SAVE AREA 24
- GENETIC IMPROVEMENT WAS ESSENCIAL TO ADAPT CROPS TO THE TROPICAL CLIMATE 25 chapter 4
- GENETIC IMPROVEMENT IS BEING CARRIED OUT FROM THE ANCESTRAL FARMERS 26
- BIOTECHNOLOGY HAS REVOLUTIONIZED AGRICULTURE 27 GLOBAL FOOD SECURITY
- BRAZIL IS THE SECOND LARGEST GMO PRODUCER IN THE WORLD 28
- HUNGER IS A CHALLENGE TO BE OVERCOME WORLDWIDE 65
- OVER 20 YEARS OF GMO IN THE FIELD CONFIRM THE EXPECTED BENEFITS FOR BRAZIL 29
- GREATER FOOD PRODUCTION IN BRAZIL LOWERED THE RELATIVE COST 69
- AN ADOPTION OF BIOTECHNOLOGY IN THE WORLD GATHERS SOCIAL, ENVIRONMENTAL 30
OF BASIC FOOD BASKET
AND ECONOMIC BENEFITS
- BRAZIL, A LEADING COUNTRY IN THE FIGHT AGAINST HUNGER IN THE WORLD 70
- GMO FOODS ARE AMONG THE MOST ANALYZED AND SAFEST PRODUCTS 31
- THE OUTLOOK FOR AGRICULTURAL PRODUCTION IN BRAZIL IS QUITE 75
- THE HISTORY OF PLANT PROTECTION 32
OPTIMISTIC
- LACK OF PROTECTION AGAINST PESTS AND DISEASES REDUCES FOOD PRODUCTION 33
BY 20 TO 40%
- BRAZILIAN REGULATORY SYSTEM GUARANTEES FOOD THAT IS SAFE TO HEALTH AND 34
THE ENVIRONMENT REFERENCES
- BRAZIL IS THE 25th CONSUMER OF CROP PROTECTION IN THE WORLD 36
- BRAZIL EXPORTS FOOD TO OVER 160 COUNTRIES WITH STRICT WASTE CONTROL 37 76
- THE NUMBER OF BIOLOGICAL CROP PROTECTION PRODUCTS REGISTERED IN THE LAST 38
20 YEARS IN BRAZIL IS GREATER THAN THE NUMBER OF CHEMICAL PRODUCTS
- DIGITAL AGRICULTURE SAVES INPUTS AND NATURAL RESOURCES 39
BRAZIL
NUMBERS, HISTORY AND INSTITUTIONS
BRAZIL IN THE WORLD
Brazil is a continental country. With 8.5 million square kilometers, it
Brazil occupies 47% of the territory of South
has the fifth largest territorial extension in the world. It is surpassed
only by Russia, Canada, China and the United States.
America, where it is located. 47%
As for the other twelve countries on the sub-
continent, Brazil does not have borders with
BIGGEST COUNTRIES IN THE WORLD just two: Chile and Ecuador.

CANADA
9,976,139 km² RUSSIA
17,075,400 km²
EUA 2 CHINA
9,363,520 km² 1 9,596,961 km²

4 3
BRAZIL
8,514,876 km²

source: IBGE (2018)

MOST POPULOUS COUNTRIES IN THE WORLD GDP OF THE WORLD’S LARGEST ECONOMIES
(in millions of inhabitants) (in trillions of dollars)

1,439,3
1,380,0 Brazil has a great economy. In 2020, its GDP (Gross
With 212 million inhabitants, Brazil Domestic Product) occupied the twelfth position
has the sixth largest population on among the largest in the world.
the planet, according to projections
by the United Nations (UN). However, the greatness of its economy cannot give rise
to the idea that the Brazilian people are economically
privileged. The country’s GDP per capita in 2020
ranked 88th in the world. An intermediate position,
slightly below the global average and slightly above
Latin America.
331,0
273,5
220,9 212,6

CHINA INDIA USA INDONESIA PAKISTAN BRAZIL

JAPAN GERMANY UK INDIA FRANCE ITALY CANADA SOUTH RUSSIA BRAZIL


KOREA

source: United Nations, World Population Prospects (2019) source: FMI (2020)

05 | A Sustainable Journey
BIOME DIVERSITY

The Brazilian territory is occupied by six


biomes, each with its typical climate,
vegetation and fauna. They are: the Amazon,
the Cerrado, the Atlantic Forest, the
Caatinga, the Pampa and the Pantanal.

AMAZON

The most extensive biome and also the Biome of the semiarid region of Brazil.
most internationally known. With a hot and Savannah-type vegetation with species that
humid climate, it is considered the largest withstand long droughts.
biological reserve in the world.

Area: 4,198,273 (km²) Area: 829,436 (km²)

ATLANTIC
FOREST

It is the largest floodplain on the planet. Located in the extreme south of Brazil, it has Savannah-type vegetation with forests It is located in the most densely populated
It houses representatives from almost all typical steppe vegetation with few forests. occurrence. It has been the main area of region in Brazil. Exploited economically for
Brazilian fauna. The climate is marked by the frequency of expansion of agricultural activity in Brazil five centuries, it has the most characterless
polar fronts and sub-zero temperatures in recent decades. nature.
in Winter.

Area: 151,581 (km²) Area: 178,831 (km²) Area 2,047,190 (km²) Area: 1,110,456 (km²)

06 | A Sustainable Journey
THE AMAZON THE CAATINGA
It is the most extensive biome and also the best It is the biome of the semiarid region of Brazil. Its
known internationally. It is characterized by its characteristic vegetation is a type of savannah with
hot and humid climate and its dense forest, the species capable of withstanding long droughts,
rainforest. Due to the variety of plant and animal interspersed with short and irregular rainy periods.
species it houses, it is considered the largest The climate is hot and its forests are sparse.
biological reserve in the world.

THE CERRADO THE PAMPA


It has a warm tropical climate with only two It is located in the extreme south of Brazil. It
distinct seasons: the rainy one and the dry one. has typical steppe vegetation with few forests.
It is Savanna-type vegetation, with forests Rains are regular and the climate is marked by
occurrence. The Cerrado has been the main area the frequency of polar fronts and sub-zero
of expansion of agricultural activity in Brazil in temperatures in winter.
recent decades.

THE ATLANTIC FOREST THE PANTANAL


It is located in the most densely populated region It is the great floodplain of central-west Brazil. For
in Brazil. Exploited economically for five centuries, several months a year, it is covered by the waters
it has the most characterless nature. Its typical of the Paraguay River basin. Its typical vegetation
vegetation is the rainforest, which can be dense is savannah with some forests occurrence. The
or open and dependent on regular rainfall, without Pantanal is also home to representatives of almost
marked dry periods. all Brazilian fauna.

07 | A Sustainable Journey
A SMALL PART OF 1700
Expansion of coffee The country became a
A LONG HISTORY plantations.
federative republic with
presidential regime.
Gold and gemstone
mining activities

1500
Independence of Brazil
1516 and adoption of monarchy
as a form of government.
1889
Arrival of the Portuguese in Brazil.
Introduction of 1822
The populations that lived there
already practiced agriculture,
1503 sugarcane in the
Northeast.
planting corn and cassava.
Wood extraction,
mainly "brazilwood". After a dictatorial period
(1964-1985) the 1988
Constitution was Industrialization
The 1988 Constitution has growth and
promulgated.
guaranteed free and periodic
elections for the President of the
TODAY 1988 1970
diversification of
Brazilian economy.
Republic and congressional
Modernization of Brazilian
representatives at the three agriculture, transforming the
levels of federal, state and
municipal government.
Brazil is a federation with 26 states, in
addition to the Federal District.
country into one of the main
producers of grains and
1930
meats in the world.
Each state is divided into municipalities.
The country has 5770 municipalities.

The history of Brazil begins with the arrival of the The first economic activity of the Portuguese in By that time, coffee plantations were already continued to be the main agricultural product,
Portuguese on its coast in 1500. the new lands was extractivism. They explored expanding. Coffee was introduced in the country but its importance for the economy as a whole
the woods, mainly brazilwood, which provides a in the first half of the 18th century, and became was reduced.
The populations that lived here already practiced red dye. Brazilwood had such a prestige in the the main engine of the Brazilian economy from
agriculture, mainly with maize and cassava, early days of the Colony that it ended up giving 1830 to 1930.
products that are still important in Brazilian the territory its name. Brazilian agriculture entered a strong cycle of
agricultural production. The concentration Brazil abandoned the monarchic government modernization in the 1970s. The process, which
of trees in certain areas of native forests and The intensive cultivation of the land began in system in 1889 and became a federative republic is still alive, made Brazil become an industry
the frequent plants occurrence outside their 1516 with the introduction of sugarcane in the with a presidential regime. powerhouse, one of the world’s leading grain and
original ecosystems suggest that the former Northeast, which is to date, one of the main meat producers, within a period of less than 50
inhabitants of the Brazilian territory also practiced products of Brazilian agriculture. In the 18th years, without abandoning advances in traditional
some type of forest management. century, agriculture gave way to gold and From the crisis of the 1930s and the crops, such as sugarcane and coffee.
gemstone mining as Brazil’s main economic Second World War, industrialization
activity. This period lasted only a century. After the authoritarian regime, which lasted
had a great impulse and the Brazilian
from 1964 to 1985, the 1988 Constitution was
The intensive cultivation of the land economy was diversified.
In 1 8 2 2 , B r a z i l b e c a m e i n d e p e n d e n t promulgated.
began in 1516, with the introduction from Portugal. It became an Empire,
of sugarcane in the Northeast, which adopting a form of government known as
to date is one of the main products of a constitutional monarchy. From the crisis of the 1930s and the Second World
War, industrialization had a great impulse and
Brazilian agriculture.
the Brazilian economy was diversified. Coffee

08 | A Sustainable Journey
Brazil is a federation with 26 states, in addition to the Federal
District, the federated unit where the capital, Brasília, is located.
Each state is divided into municipalities with very different
populations and sizes. Altogether, Brazil has 5770 municipalities.
At the federal level, Brazil is constituted by three powers, namely:

Legislative,
exercised by the National Congress,
constituted by the Chamber of Deputies
and the Senate;

Executive,
exercised by the President of the
Republic assisted by his Ministers;

Judiciary,
a complex system of courts, headed by the
Supreme Court.

09 | A Sustainable Journey
AGRICULTURAL RESEARCH: WHERE IT ALL BEGAN

It was during the Empire that the first Embrapa is a public company with over two
institutions dedicated to higher education and thousand researchers, distributed in 43
research in the agrarian sciences were created research units throughout Brazil and dedicated MAIN PUBLIC INSTITUTIONS FOR AGRICULTURAL RESEARCH
in Brazil. The first agronomy school started to practically all areas of Brazilian agriculture.
its activities in 1877 in São Bento das Lajes,
Bahia. This institution is currently part of the Agricultural research led Brazil to develop its
Universidade Federal da Bahia, own technology, adapted
Cruz das Almas campus. Agricultural research led to the tropics, where most
of its territory is located.
Brazil to develop its own
A few years later, in 1883, the Without this, the country
second agricultural college in technology, adapted to the would still be dependent
the country was founded, in tropics, where most of its on technologies developed
Pelotas, Rio Grande do Sul, which territory is located. to meet the needs of
is now part of the Universidade temperate climates.
Federal de Pelotas.
Brazilian tropical
In 1887, Instituto Agronômico de Campinas, an agricultural technology is original,
institution dedicated to research, was created pioneering and innovative.
in São Paulo.
It is an invaluable contribution to the
During the 20th century, other agrarian sciences development and production of food in all
schools and research institutions emerged in countries located between the tropics, on
various parts of Brazil. It is worth mentioning the various continents. For Brazil, it was
the foundation of the Brazilian Agricultural decisive in the great impulse of agricultural
Research Corporation (Embrapa), in 1973. production has had in the last 50 years.

source: EMBRAPA (2020)

FIRST EMBRAPA HEADQUARTERS: EMBRAPA UNITS


In 1974, the first national product centers were created.

RESEARCH INSTITUTES AND UNIVERSITIES


WHEAT RICE AND BEANS BEEF CATTLE RUBBER TREE
UFBA Universidade Federal da Bahia UFPR Universidade Federal do Paraná
UFV Universidade Federal de Viçosa UFRPE Universidade Federal Rural de Pernambuco
USP Universidade de São Paulo IAC Instituto Agronômico de Campinas
UFLA Universidade Federal de Lavras UFMG Universidade Federal de Minas Gerais
UNESP Universidade Estadual Paulista Júlio de Mesquita Filho UFRRJ Universidade Federal do Rio de Janeiro
UFPEL Universidade Federal de Pelotas UFSC Universidade Federal de Santa Catarina
UFRGS Universidade Federal do Rio Grande do Sul EPAGRI Empresa de Pesquisa Agropecuária e
IRGA Instituto Rio Grandense do Arroz Extensão Rural de Santa Catarina
source: EMBRAPA (2020)
UFSM Universidade Federal de Santa Maria UEL Universidade Estadual de Londrina
UEM Universidade Estadual de Maringá IAPAR Instituto de Desenvolvimento Rural do Paraná
UFSCAR Universidade Federal de São Carlos UFU Universidade Federal de Uberlândia
UFMT Universidade Federal de Mato Grosso UFG Universidade Federal de Goiás

10 | A Sustainable Journey
ENVIRONMENTAL LEGISLATION

Since the beginning, after the arrival of the Portuguese, Brazil Since the end of the 18th century, private and public
has had laws aimed at protecting nature. Still in the 16th initiatives have emerged to recover forests in devastated
century, the Colonia zoned forests, establishing protected areas. The most emblematic case is the one of Floresta da
areas in them. Although the motivation was only the control Tijuca, in Rio de Janeiro.
of forest species of economic value, such as brazilwood,
there was a limiting effect on the extraction of some forests. The initiative came from Emperor Pedro II. In 1862, he
determined that native species of the Atlantic Forest should
The expression “hardwood”, or “Madeira de Lei”, in Portuguese, be planted in the place which was previously occupied by
used in Brazil to refer to good quality wood, has its origins coffee plantations. It was only in the 20th century, however,
in a legal provision dated 1827, which gave judges the that the first steps were taken towards the elaboration of
power to establish protection rules for forest species of the environmental laws in force in Brazil.
economic value.

Since the end of the 18th century, private and


public initiatives have emerged to recover
forests in devastated areas.

1503 1827 1862 1930

First laws designed to Origin of the expression Planting of native species First steps towards drafting
protect nature, aiming “hardwood” (Madeira de Lei, from the Atlantic Forest the environmental laws
to limit the extraction of in Portuguese), used in Brazil in the Tijuca Forest, in Rio currently in force in Brazil.
brazilwood. to refer to good quality de Janeiro, as an initiative
wood, with economic value. of Emperor D. Pedro II,
to recover forests in
devastated areas.

11 | A Sustainable Journey
1973 1988 1998
The year 1934 was marked by the institution The first environmental protection area in
of the Hunting and Fishing Code, which the country, Parque Nacional do Itatiaia,
brought the first measures to protect wild was created in 1937. The area is located in
fauna; the Forest Code, which classified Serra da Mantiqueira and covers regions
forests into four types, establishing those in the states of Rio de Janeiro and Minas
that should be fully protected and those Gerais.
that could be exploited, and the Water
Code, which determined the rules for their Creation of the Special T h e 19 8 8 C o n s t i t u t i o n The Environmental Crimes
common use, particular use and for energy Environment Secretariat, the dedicated a chapter to the Law was approved in 1998,
production. first federal body dedicated environment: “Everyone has providing punishment for acts
to acting exclusively in the the right to an ecologically and activities that harm the
preservation of nature. balanced environment, a environment.
common good for the people
and essential to a healthy
quality of life...” (art. 225).

1934 1937 1965


The New Forest Code dated 1965, updated The 1988 Constitution dedicated a chapter
the regulation from 1934 and established to the environment and defined: “Everyone
that rural properties should have permanent has the right to an ecologically balanced
preservation areas – to protect springs, environment, a common good for the people
waterways, hilltops, and slopes, for example and essential to a healthy quality of life, and
– in addition to legal reserves, a portion of it is the duty of the Public Power and the
each land where native vegetation would be community to defend it and preserve it for
preserved. present and future generations” (art. 225).
Institution of the Forest Code, C re a t i o n o f t h e f i r s t Updating of the 1934 code,
establishing the forests that environmental protection e s t a b l i s h i n g t h at r u ra l
In 1973, the Special Environment Secretariat The Environmental Crimes Law was approved
should be fully protected and area in the country, the Parque properties should have
was created, the first federal body dedicated in 1998, providing punishment for acts and
those that could be exploited. Nacional do Itatiaia, in Serra permanent preservation areas,
to acting exclusively in the preservation of activities that harm the environment.
da Mantiqueira, which covers in addition to legal reserves.
nature.
areas in the states of Rio de
Janeiro and Minas Gerais.

12 | A Sustainable Journey
1999 2012 Brazilian Forest Code (2012)

80%
Creation of the National The current Forest Code was
Environmental Education approved in 2012 and replaces
Policy, introducing
environmental education at all
the 1965 Code, establishing
general rules for the protection
Area preservation on rural
properties depending on the 35%
biome location:
levels of education in Brazil. of vegetation, permanent
preservation areas and Legal
Reserves. 80% in the Amazon
35% in the Cerrado
20% in the other biomes
20%

In 1999, the National Environmental Education Policy was Its article 2 offers an overview of what nature represents to
created. It introduced environmental education at all levels Brazilian society today: “The forests existing in the national
of education in Brazil, aiming to sensitize the population to territory and other forms of native vegetation, recognized as
environmental protection issues. useful for the lands they cover, are goods of common interest
to all inhabitants of the Country...”
The current Brazilian Forest Code or Environmental Code was
enacted in 2012 (Law 2651/2012), after 13 years of debates The 2012 Forest Code establishes that all properties have a
in the National Congress. It replaces the 1965 Code and minimum reserve area for native vegetation. It is called the
establishes general rules for the protection of vegetation, Legal Reserve (RL), which, depending on the type of vegetation
permanent preservation areas, and Legal Reserves. It also and biome, should occupy 20% to 80% of the property’s area.
determines the rules for forests exploitation, controlling, In the Amazon biome, the area destined for the Legal Reserve
and prevention of forest fires. must be 80% of the total, in the Cerrado it is 35% and in the
other biomes it is 20% of the total area.

The 2012 Forest Code establishes that all properties At the federal level, the Ministry of Agriculture, Livestock and
have a minimum reserve area for native vegetation. Supply (MAPA) and the Ministry of Environment (MMA) are
primarily responsible for government actions in both areas.

All states and most municipalities also have specific bodies to


act in agricultural production and the environment.

13 | A Sustainable Journey
SUSTAINABLE
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTION HAS GROWN UP
TO 5 TIMES IN THE LAST 40 YEARS

Brazil is one of the greatest Even traditional crops SOY


growth of
agricultural powers on The expansion was mainly in Brazil, which did not
124.9
the planet. This fact was have such a regular
unimaginable just four
driven by grain production. growth, have changed
decades ago. The expansion In 1980 the country produced their production level (million tons)
was mainly driven by grain 50.8 million tons of grain; in during this period. 68.7
production. In 1980 the 2020, almost 257 million. This This is the case of
country produced 50.8 sugarcane, which
represents an almost 5-fold 32.4
million tons of grain; in showed a four-time
2020, almost 257 million. growth in production. growth from 1980 14.8
20.1
This represents an almost to 2020.
5-fold growth in production. 1979/80 1989/90 1999/00 2009/10 2019/20

source: CONAB (jan. de 2021)

CORN
growth of
102.5

GRAINS SUGARCANE (million tons)


growth of growth of
56.0

717.5 31.6
257.0 690.3
(million tons) (million tons) 19.4 22.3

149.3
326.1 1979/80 1989/90 1999/00 2009/10 2019/20
262.7
83.0 source: CONAB (jan. de 2021)
50.8 58.2 148.7

1979/80 1989/90 1999/00 2009/10 2019/20 1979/80 1989/90 1999/00 2009/10 2019/20

source: CONAB (jan. de 2021) source: IBGE e LSPA (set. de 2020)


COTTON
growth of
7.4

(million tons)

3.0
1.7 1.9 1.9

1979/80 1989/90 1999/00 2009/10 2019/20


source: CONAB (jan. de 2021)

15 | A Sustainable Journey
In addition to the expressive growth in the volume of grains, the production of animal protein has also shown an extraordinary increase in the last twenty years.
More than three times for pork, two times for beef, and almost three times for chicken.

13.8
4.5 7.8
7.0
10.7
3.1

3.9
PORK BEEF CHICKEN 5.1
growth of growth of growth of
1.3

3 2
(million tons)
2
(million tons) 2000 2010 2020
(million tons)
2000 2010 2020 2000 2010 2020
source: IBGE - Pesquisa Trimestral do Abate dos Animais (2020)

16 | A Sustainable Journey
A COUNTRY OF DIVERSIFIED PRODUCTION
Despite having its flagships, Brazilian agriculture is very diversified. This is quite evident when a brief analysis is
made considering only Brazilian agricultural products with production greater than one million tons per year and
how they are distributed in the producing regions.

PRODUCTION GREATER THAN


ONE MILLION TON PER YEAR

NORTH
Açaí
Pineapple
Palm oil NORTH EAST
Cassava Pineapple
Banana
Coconut
Bean
Mango
Papaya
Watermelon
MIDWEST
Cotton
Beef
Bean
Corn
Soy SOUTH EAST
Sorghum Banana
Potatoes
Coffee
SOUTH Sugarcane
Rice Bean
Chicken Milk
Onion Orange
Pork Lemon
Bean Chicken
Milk Eggs
Apple Tomato
Wheat
source: IBGE: LSPA (setembro de 2020) / PAM (2019) / Pesquisa
Grape Trimestral do Abate dos Animais (2º Trimestre de 2020) / PPM (2019)

17 | A Sustainable Journey
BRAZIL IS A GLOBAL LEADER IN THE
USE OF RENEWABLE ENERGY

In addition to producing food, Brazilian Worldwide, renewable energy sources account


agriculture also includes the production of for only 13% of the energy matrix. Since the
sources for energy generation. Diversification 1970s, Brazil has developed one of the most
is one of the central pillars of the Brazilian successful bioenergy programs in the world. In
energy policy. The country also made the beginning, it was based on ethanol extracted
BRAZILIAN ENERGY MATRIX
international commitments for expanding the from sugarcane. Currently, the gasoline used
use of sustainable energy sources. in the country is mandatorily mixed with 27%
Nuclear
ethanol and diesel with 10% biodiesel.
Renewable sources – including water, Mineral coal

wind, sun and bioenergy – account Other non renewable

for 46.2% of the energy consumed in Currently, the gasoline used in the
Other renewable
Brazil country is mandatorily mixed with 27%
ethanol and diesel with 10% biodiesel.
Renewable sources – including water, wind,
Wood and
sun and bioenergy – account for 46.2% of charcoal Petroleum and
the energy consumed in Brazil. Most of these By far, the main raw material for ethanol is still derivatives
sources rely on agriculture, which makes the sugarcane, but corn and other products such
Brazilian energy matrix quite different from as oats, barley, wheat and sorghum have also Natural gas
other countries. started to be used. For biodiesel, the diversity
of raw materials is greater, but soy stands out. Sugarcane
Hydraulic derivatives
Wo r l dw i de , re n ewa b l e e n e rg y
sources account for only 13% of the
energy matrix. source: EPE/BEN (2019/2020) E ANP (2021)

Since the 1970s, Brazil has developed one of


the greatest bioenergy programs in the world,
promoting the production and adoption
WORLDWIDE ENERGY MATRIX of ethanol.

Currently, the gasoline used in the country is mandatorily mixed with 27%
Mineral Petroleum and ethanol and diesel with 10% biodiesel.
coal derivatives

Others

Biomass

GASOLINE ETHANOL DIESEL BIODIESEL


Natural gas
Hydraulic

Nuclear
source: EPE (2021)

18 | A Sustainable Journey
USE OF ETHANOL IN BRAZIL REDUCES CO² EMISSIONS

ETHANOL PRODUCTION BIODIESEL PRODUCTION


(million m³) (million m³)
40,00 7,00
35.3
35,00 33.0 5.90
6,00
5.35
30,00 28.3
5,00
25,00 4.29

20,00 4,00

15,00
3,00
10,00
2,00
5,00

0,00 0,00
2017 2018 2019 2017 2018 2019
source: ANP (2020) souce: ANP (2020)

Last year, the Sugarcane Industry Association Natural Gas and Biofuels Agency (ANP). This In addition, sugarcane biofuel practically cannot be disregarded. These raw materials
(UNICA) announced that between March volume is equivalent to the sum of the annual eliminates the dispersion of particles that are correspond to a percentage of 8.8% of the
2003 (the birth date of flex emissions of Argentina, harmful to health, which manages to penetrate country’s energy sources.
technology in Brazilian Venezuela, Chile, Colombia, into the deepest parts of the lung (-98%
automotive vehicles) and The consumption of ethanol Uruguay and Paraguay. compared to gasoline and diesel), as well as Expectations in relation to forest plantations
April 2021, the consumption (both anhydrous and hydrated) toxic hydrocarbons (-99% in the emission of for purposes of producing energy and using
of ethanol (both anhydrous avoided the emission of more W h e n e v a l u a t i n g t h e benzene, present in gasoline, and in the emission wood in new businesses (biorefineries for
and hydrated) avoided the than 556 million tons of CO emissions of greenhouse of polyaromatic hydrocarbons, generated in biomass) are quite high.
emission of more than 556 ² gases (GHG) in the life cycle diesel-burning).
million tons of CO in the
in the country. of fuels, ethanol provides an
²
country. up to 90% reduction in the Although most of the renewable energy sources
emission of GHG compared to gasoline. in Brazil come from sugarcane, the participation
According to the organization, the study was of firewood and charcoal from planted forests
based on data from the National Petroleum,

RAW MATERIALS USED IN BIODIESEL PRODUCTION

RAW MATERIALS USED IN ETHANOL PRODUCTION SOY OIL 68% FRYING OIL 1.57%

BOVINE FAT 11.46% COTTON OIL 1.03%


SUGARCANE CORN OTHERS
2.02%
99.65% 0.12% 0.23% 0.56%
PALM FAT CHICKEN FAT

source: ANP (2020) PORK FAT 1.95% CANOLA RAPESEED OIL 0.04%
OTHER MATERIALS 11.43%
CORN OIL 1.94% (castor, babassu, sunflower, peanut, jatropha)
source: ANP (2020)

19 | A Sustainable Journey
PLANTED FORESTS ARE THE MAIN SOURCE FOR
VARIOUS PRODUCTS IN BRAZIL
Although planted forests provide a Taken together, eucalyptus and pine,
significant part of the raw materials for account for the coverage of 96.1% of the MAIN FORESTRY PRODUCTS
bioenergy in Brazil, cultivated areas
such as charcoal and with planted forests
firewood, they also The first commercial forests were f o r c o m m e r c i a l
produce wood for planted in the beginning of the20th purposes.
cellulose and other century, when there was a shortage
purposes.
of native wood for the railways in According to the
National Plan for
The first commercial the state of São Paulo. the Development
forests were planted of Planted Forests,
in the beginning of the Brazil has a goal of
20th century, when there was a shortage of adding another 2 million hectares to the 9.98
native wood for the railways in the state of São million hectares of planted forests by 2030.
Paulo. A great growth occurred from the 1960s.
Since 2000, the value In other words, it WOOD FOR PAPER
of forestry production intends to grow
In recent decades, as the cultivation AND CELLULOSE
exceeded the one of 20% of the current
plant extraction. of planted forests expanded, the area. One of the
WOOD FOR OTHER
production of products derived consequences of
The results of the Vegetal
PURPOSES
from Brazilian native forests planting forests is a
Extraction and Forestry decrease of human
fell markedly.
Production ( P E V S) pressure on the
research showed an native vegetation.
increase of 1.2% in the This behavior is
total area of planted forests in the country already observed in recent decades, as the CHARCOAL
in 2019, which represents an increase of 118.1 cultivation of planted forests expanded, the
thousand hectares. About 79.4 thousand production of products derived from Brazilian FIREWOOD
hectares of this total correspond to areas native forests fell markedly.
of eucalyptus, the predominant species in
Brazilian territory.

PLANTED AREA OF FOREST SPECIES


(million hectares)
OTHER OTHERS
SPECIES
PINE

source: IBGE/PEVS (2019)


TOTAL AREA

EUCALYPTUS
source: IBGE/PEVS (2019)

20 | A Sustainable Journey
PRODUCTS FROM NATIVE FORESTS

The fact that the production of these items has In order to ensure that the forest product is originated
120,00
decreased in recent decades does not mean that native 108.6 from sustainable management, there are several
forests will one day cease to produce completely. As in certification systems in the country. The two most
100,00 97.5
many parts of the world, the sustainable exploitation important are Cerflor (Brazilian Forest Certification
of the native forest – without devastation – is allowed Program), which is part of an international system
in Brazil under specific rules. 80,00 – the PEFC (Endorsement of Forest Certification
Scheme Program) -, and the FSC (Forest Stewardship
60,00 Council), an international organization.

40,00

19.1
20,00
12.0
2.8 0.4
0,00
WOODEN WOODEN
FIREWOOD CHARCOAL FIREWOOD CHARCOAL
LOGS LOGS
(million m³) (million m³) (million tons) (million m³) (million m³) (million tons)

1990 2019
source: IBGE/PEVS (2019)

21 | A Sustainable Journey
TECHNOLOGY HAS INCREASED AGRICULTURAL
PRODUCTION AND SAVED AREA

The performance of Brazilian agriculture is generally The main element that contributed to the expressive gains The development of earlier and more adapted varieties,
associated with factors such as availability of natural in productivity, and the consequent saving of natural resulting from genetic improvement, in addition to
resources, encouragement to the adoption of technologies resources was the use of technologies adapted to tropical allowing the reduction of risks made the second crop
adapted to tropical conditions, public policies, the conditions and the Brazilian reality. viable in many regions of Brazil. Finally, the adoption of
entrepreneurial capacity of producers and organization fertilizers, the access to machinery and equipment with
of value chains that, together, explain the remarkable advanced technology embedded in agriculture, such as
growth observed in the last few decades. GPS and sensors, has allowed a more rational use of
inputs, thus reducing production costs and favoring the
environment.

The main element that contributed to the The development of earlier and more adapted In addition, the adoption of conservation practices such as
expressive gains in productivity, and the varieties, resulting from genetic improvement, no-tillage, crop rotation, production systems integrating
consequent saving of natural resources was the in addition to allowing the reduction of risks agriculture, livestock and forest, and more sustainable
crop protection techniques, such as integrated pest
use of technologies adapted to tropical conditions made the second crop viable in many regions
management, more efficient use of pesticides and
and the Brazilian reality. of Brazil. genetically improved plants resistant to diseases and
pests are also noteworthy.

22 | A Sustainable Journey
MULTIPLE CROPPING IN THE SAME PIECE OF LAND

EVOLUTION OF GRAIN PRODUCTION AND PLANTING AREA


The intensification of good agricultural 300,00
practices contributed so that the growth of While the multi-crop model is used in
257.74
Brazilian agricultural production did not result almost all grain-producing regions of
250,00
in an equivalent decrease in native vegetation. Brazil, it is impractical in places with very

406%
A standard approach in Brazil consists of using severe winters.
the same area to plant two temporary crops in 200,00
the same year. So, when we say that, in the same 149.25 PRODUCTION other crops are used, such as wheat, cotton and
annual cycle, soy has occupied an area x and 150,00 (million tons)
sorghum. In addition to soy, corn can also be
rotated with other crops, including pastures for
100,00 83.02
A standard approach in Brazil consists temporary use.

64%
58.28 65.91
50.87
of using the same area to plant two
50,00 In addition to the better use of the area, with
temporary crops in the same year. 47.41 AREA two crops in the same year, crops also became
40.15 38.94 37.82 (million ha)
more productive.
0,00
corn an area y, it does not mean that the planted 1979/80 1989/90 1999/00 2009/10 2019/20
As a result, between 1980 and 2020, while grain
area of the two crops was equal to x + y. Indeed, source: CONAB (outubro de 2020)
production grew 406%, the planted area did not
much of the area of both crops is physically
increase by over 64%.
the same. One is planted in the first period of
the agricultural year, i.e. spring-summer, and This type of rotation, which used to be restricted grain-producing regions of Brazil, it is impractical
the other one in the second period, i.e. autumn- to some areas of Brazil before the boost, due in places with very severe winters.
winter, exactly in the same area. to policies to encourage agriculture and the
adoption of field technology is now widely adopted. The most common rotation is between soy and
While the multi-crop model is used in almost all corn. However, depending on the region, several

SOY - PRODUCTION X AREA COFFEE - PRODUCTION X AREA CORN - PRODUCTION X AREA COTTON - PRODUCTION X AREA
140,00 124.9 38.0 120,00 8,00 7.4
40,00 36.3 102.5
120,00 7,00
100,00
35,00 29.2
100,00 PRODUCTION 29.0 6,00
(million tons) 30,00 80,00 PRODUCTION PRODUCTION
80,00 68.6 PRODUCTION 56.0 (million tons)
5,00
4.0
25,00 (million tons) (million tons)
60,00
60,00
4,00 3.0
20,00
32.3 40,00 31.6 3,00
1.9 1.9
40,00 15,00 19.4 22.2
14.8 20.1 2,00
20,00 36.9 10,00 20,00
AREA 2.9 18.5 AREA 1,00 1.9
0,00 23.4 2.2 2.1 1.9 11.6 12.0 12.7 12.9 1.7 1.6 AREA
11.5 13.5 (million ha) 5,00 AREA 0,00
0,0
8.7 0,0 (million ha)
(million ha) 0.8 0.8 (million ha)

1980 1990 2000 2010 2020 1990 2000 2010 2020 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020

source: CONAB (2021) fonte: IBGE, PAM e LSPA (setembro de 2020) fonte: CONAB (setembro de 2021)
fonte: CONAB (2021)

Individually, the main products of Brazilian Also, regarding productivity gain, it is worth Between 1980 and 2020, the increase in soybean This effect is even more pronounced in
agriculture have increased in productivity in noting that some crops have shown an increased area was 324%, while production grew 743%. In cotton, which, between 1980 and 2020, had a 330%
recent decades. This fact is explained by the production accompanied by a reduction in the the case of corn, the difference is proportionally increase in production and a 60% reduction in
increased production without an equivalent planted area in recent decades. This was the case greater: production grew 428% and the area the area.
increase in the area. of coffee, which, in 2020, had a 24% increase grew 59%.
in production compared to 1990, in a 34%
smaller area.

23 | A Sustainable Journey
FERTILIZERS INCREASE THE YIELD OF
PLANTS IN THE FIELD AND SAVE AREA

EVOLUTION OF GRAIN PRODUCTION AND


FERTILIZER CONSUMPTION
300 40

Production (million tons) and Planted Area (million ha)

Fertilizer Consumption (million tons)


Planted area - Grains (millions ha) - Equivalent technology 1990

Planted area - Grains (millions ha)


250 35
Grains Production (million tons)

Fertilizer consumption (million tons)


200 30

150 20

100 15

50 5

0 0

20 /04

08 8

20 10

20 13
19 90

20 /14
19 93

19 97

20 /07
19 98

0
19 94

20 /03

20 06

20 /18
20 05

20 16
20 00
19 99
19 95

20 02
6

20 17
20 /01

20 19
20 12
20 09
19 92

20 15
19 91

20 11
/0
/9

/2
/

/
/
/

/
/

/
/
/

/
/

/
/

/
/

/
/
/

12

17
10

13

16
11

15

18
09

14
93
90

96

06
00

07
03
92

97
89

98

19
01
91

02

04
95

05
94

99
19
19

20
source: ANDA, CONAB (2021)

In order to guarantee agricultural production, Products aimed at plant nutrition, such The use of fertilizers and correctives is one These numbers reveal how much Brazilian
nutrients must be made available in adequate as fertilizers and correctives, contribute of the main contributors to the increase in agriculture has become more efficient
amounts to the plants. Since at each cycle decisively to a higher level of agricultural agricultural productivity worldwide. They after 30 years of production. If Brazil were
crops extract nutrients from the soil, a natural productivity, preventing new areas from being account for about 40 to 50% of the world’s currently producing at the same level of
decrease in nutrient stocks is expected. Thus, deforested to be incorporated into agricultural agricultural production. In Brazil, this value productivity as in 1990, there would be
it is necessary to add fertilizers, in order activities. is not different. In the 1989/90 harvest, the a need to expand or deforest an area of
to replace losses and balance unfavorable approximately 105 million hectares. Thus,
soil compositions. In the absence of these The use of fertilizers and correctives fertilizers represent a crucial technological
Products aimed at plant nutrition,
adjustments, the depletion of soil reserves tool for increasing crop productivity, since its
such as fertilizers and correctives, is one of the main contributors
would make plant development unfeasible. adoption has closely followed the growth of
contribute decisively to a higher to the increase in agricultural agricultural production.
level of agricultural productivity, productivity worldwide.
Since at each cycle crops extract
preventing new areas from being
nutrients from the soil, a natural
deforested to be incorporated into
d e c re a s e i n n u t r i e n t s t o c k s country produced 58.28 million tons of grain
agricultural activities. in an area of 38.94 million hectares.
is expected.
By the 2020 harvest, 257.02 million tons of
The nature of soils in Brazil is markedly grain had been produced in 65.92 million
After all, without nutrients, the plant does acidic, making it difficult for plants to absorb hectares. In this context, in 1989, 1.50 tons
not grow normally and does not complete its nutrients. In practice, before applying were harvested per hectare, and in 2020 this
life cycle; that is, it does not develop and does fertilizers, it is necessary to neutralize the value increased to 3.90 tons per hectare.
not reproduce. soil, which can be made by adding correctives,
such as limestone.

24 | A Sustainable Journey
GENETIC IMPROVEMENT WAS ESSENTIAL TO ADAPT
CROPS TO THE TROPICAL CLIMATE

Some of the most cultivated plants in Brazil After that, other crops were studied, such as Plant breeding techniques are extremely Among the characteristics for adapting to
were introduced soon after its discovery, such eucalyptus, vegetables, and soybeans. successful and have been widely used in Brazilian these conditions are resistance to diseases
as wheat and sugarcane. The process of growing agriculture to increase the yield of various and insects, tolerance to heat, soil salinity or
and adapting these plants to a new environment The creation of universities and plant agricultural plants in the last five decades. frost, appropriate size, shape, and maturation
was part of genetic improvement in plants. improvement companies developed and Furthermore, under the diverse conditions and time. In addition to the characteristics that
The selection of those that best adapted and expanded crop studies. In the 1970s, tropical climate, genetic improvement is even contribute to a better adaptation to the
produced the most represents the beginning Embrapa also supported and accelerated this more desirable. environment, the following are also considered:
of a strategy that would be developed and development. ease of cultivation and handling, higher yields
established in the country centuries later. and better quality.
Currently, public and private institutions offer Plant breeding techniques are
The first research into plant breeding in Brazil different cultivars for the main crops in Brazil. extemely successful and have been
took place at the Instituto Agronômico de Always taking into account the new challenges
Campinas (IAC), and at the Escola Superior de that arise to be overcome by research.
widely used in Brazilian agriculture
Agricultura Luiz de Queiroz – ESALQ/USP, in to increase the yield of various
the early 1920s. At the IAC, research began with plants in the last five decades.
cotton. At ESALQ, with cassava, rice, and corn.

25 | A Sustainable Journey
GENETIC IMPROVEMENT IS BEING CARRIED
OUT FROM THE ancestral FARMERS
1953
10,000 a.c 1900 Discovery of the 1972 2013
Start of agriculture Conventional DNA structure Recombinant
genetic improvement DNA technology

First in vitro vegetables


using the CRISPR/Cas9
technique

1866 Dec. de 1930 1975 Dec. de 1990s


Mendel Laws Improvement DNA sequencing Improvement by
(genetic inheritance) by mutation technique Dec. de 1980s genetic edition
Improvement by
molecular markers

Approximately 12,000 years ago, the soils were Thus, plant breeding began in a completely Also in prehistory, man became aware that
transformed by the progressive emergence empirical and random way. by crossing only teosinte (corn ancestor) Teosinte
of savannas rich in cereals (barley, corn individuals with a greater amount of grains The ancestor of corn was
and wheat), which, at that time, were quite It is not new to say that corn, as we know it, per cob, it would result in the production of very similar to grass.
heterogeneous. is very different from that of 12,000 years teosinte “children” with an even greater number It had very few grains
ago. The differences observed are due to the of grains. However, the ancestral peoples did grouped in stalks that did
choices made by ancestral farmers, who over not know that by cultivating these cereals for not exceed 5 cm.
As prehistoric man began to harvest and
thousands of years have developed their skills their food, they were already modifying the
sow grains, always at the same time in for cultivation. environment around them, and consequently
the calendar, they started to eliminate selecting genes and changing the genome of
some characteristics of these plants, these plants. Nowadays, genetic improvement
However, the ancestral peoples did not incorporates various knowledge from the
such as dormancy, slow development,
know that by cultivating these cereals biological sciences and is widely used in plants
small seeds and fragile stems. and farm animals.
for their food, they were already
modifying the environment around Modern Corn
As the prehistoric man began to harvest and sow them, and consequently selecting Thousands of years of
genes and changing the genome of selection resulted in the
grains, always at the same time in the calendar,
corn as we know it today,
they started to eliminate some characteristics these plants. with larger grains and in
of these plants, such as dormancy, slow
greater quantities.
development, small seeds, and fragile stems.
Seeds that carried these characteristics did
not have enough time to develop or were lost.

26 | A Sustainable Journey
BIOTECHNOLOGY HAS REVOLUTIONIZED AGRICULTURE

Over time, science has incorporated new In the botanic field, the first transgenic plants
tools for genetic improvement. Advances in were adopted in the field in 1995 in the United
knowledge about genetics, microbiology, States. In Brazil, the first seeds started to be
chemistry, physiology, molecular biology, cultivated in 1998.
among others, were decisive for us to develop
modern biotechnology as we know it. Present in crops worldwide for over
25 years, genetically modified plants
have increased production, facilitated
In the botanic field, the first transgenic management, promoted economic and
plants were adopted in the field in 1995 environmental benefits, optimized the
in the United States. In Brazil, the first use of crop protection products and
seeds started to be cultivated in 1998. allowed the development of disruptive
technologies for the sector.
Molecular discoveries resulted in a
biotechnological revolution. Using recombinant
DNA technology, it was possible to manipulate Present in crops worldwide for over 25 years,
DNA for the first time. With this technique, the genetically modified plants have increased
isolation and manipulation of genes became a production, facilitated management, promoted
reality in the health area with the production economic and environmental benefits,
of human insulin in 1982. optimized the use of crop protection products
and allowed the development of disruptive
technologies for the sector

27 | A Sustainable Journey
BRAZIL IS THE SECOND LARGEST GMO
PRODUCER IN THE WORLD

MOST ADOPTED TRANSGENIC CROPS WORLDWIDE Since 1998, Brazil has adopted genetically modified With 52.8 million hectares in 2019, Brazil has the second
organisms in agriculture. Soybeans, corn, cotton, and largest area of cultivation in the world. It accounts for
sugarcane are the transgenic crops planted in the 30.6% of the total cultivated area with in the world.
PLANTED AREA (%) country. It is only behind the United States, and is followed by
120 TRANSGENIC CONVENTIONAL Argentina, Canada, India, and China.

100 The development of biotechnology in In 2019, 74% of soy crops in the world were transgenic,
agriculture stands out as an important as well as 79% of cotton crops, 31% of corn crops and
26 21
80 factor associated with the efficiency gain 27% of canola crops.
69 73 of Brazilian agricultural production in the
60
last two decades.
40
74 79
The development of biotechnology in agriculture stands
20
31 27 out as an important factor associated with the efficiency
0
gain of Brazilian agricultural production in the last
SOY CORN COTTON CANOLA two decades.

source: PG Economics, UK (junho 2020)

GMO CROPS PLANTED AREA COUNTRIES WITH THE LARGEST AREAS OF


(million hectares) GMO CULTIVATION IN THE WORLD
(million hectares)
100

80 91.9 The use of higher-quality seeds and EUA 71.5


the development of biotechnology in
agriculture stands out among the main BRAZIL 52.8
60
factors that explain the efficiency gain of
60.9 Brazilian agricultural production in the
ARGENTINA 24
40 last two decades.

CANADA 12.5
20 25.7
10.1 INDIA 11.9
0
SOY CORN COTTON CANOLA 0 20 40 60 80
source: ISAAA (2019) source: ISAAA (2019)

28 | A Sustainable Journey
OVER 20 YEARS OF GMO IN THE FIELD CONFIRM
THE EXPECTED BENEFITS FOR BRAZIL

TOTAL GMO CULTIVATION AREA IN BRAZIL


Soy, with 35.1 million hectares, was the transgenic crop with the
largest planted area in Brazil in 2019, followed by corn, with 16.3
million hectares; cotton, with 1.4 million hectares; and sugarcane,
SOY which started in 2018 with 400 hectares, had an area of 18 thousand

35.1
million
hectares in 2019.

hectares Considering only the characteristics of tolerance to herbicides and


CORN resistance to insects, GMO developed with the primary purpose
16.3
million
hectares
58.2 SUGARCANE

18
of facilitating the management of crops and reducing costs, have
already shown to be more productive and environment friendly,
million thousand according to analyzes carried out by the English consultancy PG
hectares hectares
COTTON Economics.

1.4
million
Later, new characteristics were introduced by molecular biology
hectares techniques, resulting in drought-tolerant crops, with nutritional
benefits and disease resistance.

source: ISAAA (2019)

ACCUMULATED IMPACTS OF GMO ADOPTION IN BRAZIL OVER 20 YEARS

ENVIRONMENTAL ECONOMIC

Reduced use of crop protection products


(thousand tons) -839 Increased grain production
(million tons) 55.4
Fuel economy
(million liters) -377 Increase in total revenue
(billions of reais) 25.1
Planted area savings
(million hectares) -9.9 Increase in total profit
(billions of reais) 35.8
Reduced use of crop protection products
(thousand tons of active ingredient) -362.7 Wealth generation
(billions of reais) 45.3
Reduction of total emissions
(million tons of CO²) -26.5 Incremental contribution to GDP
(billions of reais) 2.8
source: 20 anos de Transgênicos no Brasil, Agroconsult (2018) source: 20 anos de Transgênicos no Brasil, Agroconsult (2018)

29 | A Sustainable Journey
AN ADOPTION OF BIOTECHNOLOGY IN THE WORLD GATHERS
SOCIAL, ENVIRONMENTAL AND ECONOMIC BENEFITS

SOCIOECONOMIC BENEFITS Added to these factors are the simplification and greater Transgenics had an incremental production of 278 million
OF TRANSGENIC CROPS flexibility of crop management, reduced productive risk tons of soy, 498 million tons of corn, 32.6 million tons of
- here understood as greater security for the farmer cotton, and 14 million tons of canola. The net income benefit
throughout the crop cycle in relation to economic for the world’s agriculture, accumulated in the period from
Benefits obtained US$ US$ damage caused by pests – and reduced use of crop 1996 to 2018, was 225 billion dollars, an average increase
from the global
production between 225 18.95 protection products. The combination of these elements
can also provide advantages in terms of productivity and
of 96.7 dollars per cultivated hectare. In 2018 alone, this
value was 18.95 billion dollars, which is equivalent to an
1996 and 2018: billions billions margin for the producer, with a potential positive impact average increase in income of 103 dollars per hectare.
only in 2018
on other sectors of the economy.
Also in 2018, farmers had a greater financial return for
The impact analysis of the adoption of transgenics in every extra dollar invested in transgenic seeds, compared
crops around the world in the period from 1996 to 2018 to conventional crops. In developing countries, this return
revealed significant socio-environmental and economic averaged US$4.41 and, in developed countries, US$3.24.
Agricultural biotechnology allows the use of sustainable
techniques that, in 2018, resulted in a reduction of carbon benefits that justify their widespread adoption.
dioxide emissions into the atmosphere by: The study by PG Economics concludes that, without GMO,
Twenty-tree million tons of carbon dioxide – CO2 – it would be necessary to plant an additional 23.5 million
stopped being issued only in 2018, equivalent to the hectares of soy, corn, and cotton, in order to maintain the
23 volume produced by 15.5 million cars. 776 thousand tons
of chemical crop protection products active ingredients
production levels of these crops in 2018. Most of this area
– 12.3 million hectares – would be used for soybeans.
million
tons were not used in the field, including insecticides and
herbicides – an overall reduction of 8.6% for the period
between 1996 and 2018. This corresponds to more than
which is equivalent to removing 15.5 million cars in one year.
1.6 times the total Chinese use of agricultural crop
protection products per year.

The factors that most clearly explain the success of biotechnology and its
high rate of adoption worldwide and in Brazil are those observed directly on
rural properties. Among them, the benefits arising from the efficiency of
pest control in transgenic crops stand out.
For every US$1 invested in agricultural
biotechnology, producers receive:

BIOTECHNOLOGY HAS GENERATED AN INCREMENTAL PRODUCTION OF:


US$ 4.41 US$ 3.24
in developing in developed
278 498 32.6 countries countries
million million million
tons of tons of tons of
SOY CORN COTTON
7 76
chemical crop protection products active
ingredients have NOT been used in the field,
including insecticides and herbicides. An overall
thousand tons
reduction of 8.6% between 1996 and 2018.

30 | A Sustainable Journey
GMO FOODS ARE AMONG THE MOST
ANALYZED AND SAFEST PRODUCTS

All GMO products must be analyzed for biosafety No institution can work with biotechnology
before being approved for use. In Brazil, the in Brazil without the Certificate of Quality in
National Technical Biosafety Commission Biosafety (CQB), which is also issued by CTNBio.
(CTNBio) is the body responsible for carrying
out the analyses, in a case by case basis, of According to the regulations, each GMO
GMO, following the procedures established by must undergo a risk assessment before being
the Biosafety Law (Law 11.105/05). marketed, which consists of studying the
impact of genetic alteration on the plant, the The first authorization for the cultivation of products, there are events (the genotype
The Commission brings together 54 scientists, environment and human and animal health. GMO in Brazil was granted for glyphosate- that has genes modified by molecular biology
PhDs in various areas of knowledge, with These assessments are submitted to CTNBio, tolerant GM soy, in October 1998. Since then, techniques) of soybeans, corn, cotton,
the objective of providing technical advisory which carries out the technical analysis of each hundreds of genetically modified plants have beans, eucalyptus and sugarcane, with
support to the federal government on issues product under development. been approved and released for planting on characteristics such as:
related to GMO and derivatives. a commercial scale. Among the approved

The legislation also provides for the need for


prior authorization, facilities registration and
qualified professionals for research activities.
VIRUS RESISTANCE;

TOLERANCE OR RESISTANCE TO DIFFERENT INSECTS;


GMO APPROVED BY CTNBIO
TOLERANCE OR RESISTANCE TO DIFFERENT HERBICIDES;
22.7% 19.9%
Vaccines Microorganisms DROUGHT TOLERANCE;

1.4% 8 INCREASED CELLULOSE PRODUCTION;


Medicines 8
total: 216
approvals 1.9% IMPROVED OIL QUALITY.
Insects and animals
1
10 2
22
10
3
54.2% 1
Plants 3
4 2 Although plants are the main biotechnology Foods from GM crops that are currently on
14 2
1 13 products submitted to CTNBio’s assessment, the market are as safe for human health as
3
3 3 2
5
several others have been analyzed and their counterparts from conventional crops.
3 10
9 6 approved by it. Vaccines for animal and human
9 3
3 8 1 use, cancer drugs, mosquitoes to control
1
6 1 6 dengue and several microorganisms with
5 1 2 3 application in industry, are just a few examples
3 3 2 4 that illustrate the diversity of biosafety
1 2 1 1 2
1998 1999/03 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 analyses conducted in Brazil.

source: CTNBio (2021)

31 | A Sustainable Journey
THE HISTORY OF PLANT PROTECTION

50 new products
(herbicides, insecticides
and fungicides) available
to rural products. 50 new products (herbi-
DDT is made available to farmers, cides, insecticides and
a compound developed in 1874 fungicides) available to
First pesticides formulated using
First synthetic pesticides used on and widely used in World War II to rural products.
Bacillus thurigiensis (Bt) microorganism
as an active ingredient in France. a large scale in crops. kill malaria-carrying mosquitoes.

1938 1940 1945 1950 1960

Beginning of biological control Introduction to the Integrated Pest Management The microorganism
with the use of the insect (IPM) principles, with greater attention to Bacillus thurigiensis
Rodolia cardinalis in the USA. infestation monitoring and timing for the (Bt) is registered as an 1961
Powdered chemical application of crop protection products. insecticide in the US.
product began to be used
for seed treatment.

1970

1890 1888 The first Bt plant (insect


Start of research with
1980 resistant) approved in Brazil is
GM plants.
the cotton.

Tobacco was used to 1996


combat pests and, to date,
an infusion of rope tobacco Discovery of the
is used to combat plant first fungicide
known as Calda
2005
Sumerian people diseases. 1882 First Bt (insect resistant) corn
added sulfur to their Bordalesa, a
is marketed in the USA.
crops to eliminate mixture of copper
Creation of the IAC
pests. sulfate and lime, to
Program for the
control a disease
Quality of Personal
called downy 2006 Protective Equipment
mildew in France.
in Agriculture.
OVER 4,000
YEARS AGO XVII CENTURY
Increased investment and
MIDDLE AGES 1865 evaluations associated
to the development and 2010
approvals of chemical crop
protection products.
Products such as Paris Green, a mixture of arsenic
arsenic, lead and and copper was discovered in
mercury were used to Colorado (USA) for use in the
control pests. control of the potato beetle. Intensification in the use of Bt and viruses-based
biological products, such as Nucleopolyhedrovirus
2014 (HearNPV), to control the caterpillar Helicoverpa
armigera, which arrived in Brazil in 2013.

32 | A Sustainable Journey
LACK OF PROTECTION AGAINST PESTS AND DISEASES
REDUCES FOOD PRODUCTION BY 20 TO 40%

Plant protection, using technologies that loses 20 to 40% of all the food produced
include crop protection products (chemical due to the attack of pests and diseases.
and biological), genetic improvement and
biotechnology, play a crucial role in the The Center for Advanced Studies in Applied
success of Brazilian agricultural activity. Economics at the University of São Paulo
(CEPEA/Esalq/
Plant protection acts Plant protection, using technologies USP) evaluated the
by contributing so impact of controlling
that the desirable
that include crop protection products pests and diseases
c h a r a c t e r i s t i c s (chemical and biological), genetic in soy and corn on
present in t h e improvement and biotechnology, play consumer prices.
plant genetics and a crucial role in the success of Brazilian The lack of control
enhanced by other can generate
agricultural activity.
inputs are translated productivity losses
into production in the of 6.6% to 40% in
expected quantity both crops, thus
and quality at the end of the plant’s cycle. affecting the prices of the entire chain
to the final product, which reaches the
Data from the United Nations Food and consumer’s table.
Agriculture Organization (FAO) underscore
this statement by revealing that the world

EFFECTS OF THE LACK OF TREATMENT TO CONTROL Regarding soybean rust, specifically, in order Thus, the economic result with soybeans
to assess the economic benefit of controlling planting would go from a profit of R$ 8.32
PEST AND DISEASES IN SOYBEAN AND CORN the disease, CEPEA researchers simulated a billion to a loss of R$ 3.37 billion for the national
condition in which producers would not use productive segment. Therefore, producers
fungicides. Without the control of this disease, would incur a loss of R$ 11.7 billion.
the compensation of the drop in productivity
by the increase in the cultivated area would In the case of corn, not controlling the
imply a 22.9% increase in the cost of soy in the Spodoptera caterpillar would reduce national
Price increase in the
domestic market. production by 40% in the first year of infestation
domestic market with the pest and, the lower offer would
consequently increase the prices by 13.6% on
13.6% (Spodoptera)
CORN Loss in billions
of reais
Crop protection products go a long the national average. For the producer, the
economic result with the planting of the crop
way before reaching the crops. would lead to a loss of R$ 20.5 billion.
22.9% SOY
(Rust) 20.5 CORN
(Spodoptera)

11.7 SOY
(Rust)

source: Cepea (2019)

33 | A Sustainable Journey
BRAZILIAN REGULATORY SYSTEM GUARANTEES FOOD
THAT IS SAFE TO HEALTH AND THE ENVIRONMENT

Crop protection products go a long way before and the MAPA analyzes agronomic effectiveness Worldwide, in the 1950s, 45 new active ingredients were made available for use in agriculture, such
reaching crops. Brazilian legislation is one of and recommendations for use in the field. Only as herbicides, insecticides, and fungicides. In the 2010s, there was already an accumulated total of
the most demanding in the world, with the need after these analyses, which follow international more than 600, the result of advances in science and investments in research and development.
for approval in three different instances for methodologies, the registration is granted for
pesticides to be granted registration: ANVISA, a product to be used in Brazil.
IBAMA and MAPA.
After this release, the products still undergo an
Each of these bodies analyzes a specific aspect analysis by each state so that they can finally NUMBER OF NEW ACTIVE INGREDIENTS INTRODUCED
of the products: ANVISA assesses issues be used by Brazilian farmers. BY DECADE IN THE WORLD
associated with human health; IBAMA the
aspects related to the environment;
150
128
123
103 101 103
100

ANVISA 58
toxicological 45
evaluation 50

SUBMISSION FOR REGISTRATION


REGISTRATION GRANTED 0
1950s 1960s 1970s 1980s 1990s 2000s 2010s
MAPA source: Phillips MacDougall (2018)

agronomic
evaluation

In the 1960s, the focus of chemical products demonstrate the hazard profile and risk
development was maximizing crops yield, by assessment of active ingredients and
achieving the best control of weeds, pests and formulated products. Typically, more than
diseases possible. Since then, legal requirements 150 studies are performed to register a new
IBAMA to register crop protection products have been active ingredient, and the databases of most
environmental developed so that agronomic effectiveness is older active substances have been substantially
evaluation only one of many factors considered. Much updated with new studies, particularly to
greater attention has been paid to managing the meet the requirements of the European
risks to human health and the environmental Union, USA, and other members of the
impacts of these products. Organization for Economic Cooperation and
Development (OECD).
In recent years, the regulation of these
products has been intensified and has
gained greater complexity, starting to
require a large numbers of studies to

34 | A Sustainable Journey
In the plant protection area, there is a increasingly specific for certain pests and to The improvement in the quality of products
continuous search for products that are serve a greater diversity of crops.
In the 1950s, the average rate of used for plant protection has resulted in their
less and less toxic – both to humans and to fungicides, insecticides and herbicides use in proportionately smaller quantities.
the environment. Researchers work both for For a new molecule with all the necessary application worldwide was 1,200, 1,700
adapting existing products and developing qualities to be reached, around 160,000 and 2,300 grams of active ingredient In the 1950s, the average rate of fungicides,
new molecules, and products that are substances are investigated. insecticides and herbicides application
per hectare, respectively. By 2010,
worldwide was 1,200, 1,700 and 2,300 grams
In the plant protection area, there The development until approval of a new product those numbers had dropped to 100, of active ingredient per hectare, respectively.
is a continuous search for products or molecule can take up to 18 years in Brazil and 40 and 75 grams. By 2010, those numbers had dropped to 100,
requires an investment of approximately 286 40 and 75 grams.
that are less and less toxic – both to million dollars.
humans and to the environment.

CONSUMPTION OF CHEMICAL CROP PROTECTION


RESEARCH AND DEVELOPMENT OF CHEMICAL
PRODUCTS PER HECTARE
CROP PROTECTION PRODUCTS
Registration and FUNGICIDE INSECTICIDE HERBICIDE
Research (2 years) Development (8 years)
evaluation (8 years)
US$ 107 million US$ 146 million
US$ 33 million
2,300
160 thousand 200 to 300 MAPA, ANVISA and
molecules investigated molecules identified IBAMA evaluation

1,700 Over the years, crop protection products


have become less toxic, less persistent
Biological efficacy 5 molecules are Permission to in the environment and are used in
and safety tests submitted to formulation register or not 1,200 even smaller amounts, due to their
tests, environmental increased efficiency.
safety and toxicological
studies
source: Phillips McDougall (2018)

100
ONE MOLECULE 40 75
IS SELECTED
1950 2010
(grams/hectare) (grams/hectare)

FROM THE BEGINNING OF RESEARCH TO MARKETING source: Phillips MacDougall (2018)

35 | A Sustainable Journey
BRAZIL IS THE 25th CONSUMER OF CROP
PROTECTION PRODUCTS IN THE WORLD

The Brazilian consumption of crop protection Considering the total volume of crop protection Among the countries that consume more than or
products is directly associated with the Brazil is one of the largest agricultural products, Brazil ranked third as a crop protection are at the same level of consumption as Brazil,
agriculture dimensions and weather conditions. producers in the world. In addition, it products consumer in 2018, behind China and The six are in the European Union, a region known
does not have a rigorous winter, which United States. to be strict in the regulation of crop protection
Brazil is one of the largest agricultural producers products: Cyprus, Netherlands, Malta, Belgium,
allows for more than one harvest in the
in the world. In addition, it does not have a rigorous However, when examining the consumption of Italy and Ireland.
winter, which allows for more than one harvest in same area, but prevents a break in the crop protection products per hectare, Brazil
the same area, but prevents a break in the pest pest reproduction cycle due to cold. drops to 25th place.
reproduction cycle due to cold.

CONSUMPTION OF CROP PROTECTION PRODUCTS PER HECTARE


(kg / hectares)

URUGUAY

ITALY
COSTA RICA

SAINT LUCIA

CHINA

KOREA

GUATEMALA

MALTA
ISRAEL

BRAZIL
MAURICIO

ECUADOR

TRINIDAD AND
TOBAGO

BAHAMAS

BARBADOS

SEYCHELES

JAPAN

SURINAME

BELIZE

NEW ZEALAND

CYPRUS

NETHERLANDS

BELGIUM

PALESTINE

LEBANON

MONTENEGRO

CHILE

IRELAND
source: FAO (2018)

36 | A Sustainable Journey
BRAZIL EXPORTS FOOD TO OVER 160 COUNTRIES
WITH STRICT WASTE CONTROL

BRAZILIAN MONITORING OF PESTICIDE RESIDUES


IN FOOD IS BROADER THAN IN EUROPE

Brazil UE countries**

Samples 4616 389

Food 14 10

Active ingredients 270 169

Non-compliance 41 4
Samples (0.89%) Samples (0.90%)

*Program for Analysis of Pesticide Residues in Food - PARA (ANVISA) 2019 results (samples collected 2017/2018)
**European Control Program – 2019 (samples collected 2017/2018)

In order to ensure the free trade of food that In Brazil, the responsibility for supervising the These programs, together with those Especially due to its leading role and competitive
is safe for both those who produce and those use of pesticides is shared between the Union implemented by the states, are able to identify capacity as a food exporter to over 160 countries,
who consume it, countries need to adopt good and the States. MAPA has a program for the those who fail to follow the rules. The offending Brazil has been seeking to keep up with scientific
agricultural practices. analysis of pesticides residues (National Plan farmer can be identified, guided, and even advances and the evolution of regulatory
for the Control of Residues and Contaminants punished. frameworks in countries that already have
Scientific knowledge in the control of diseases in Products of Vegetal Origin – PNCRC) laws that are adequate to the needs of modern
and pests in crops has advanced significantly that collects food samples directly from In the 2017-2018 biennium, PARA analyzed agriculture and the consumer’s expectations.
in the last 20 years, which has driven the rural properties. 4,616 samples and identified that 99% of the As is the case in the United States, Canada,
review of criteria and requirements within samples were compliant, i.e., they did not Australia and the European Union.
the scope of toxicological, environmental and The Program for Analysis of Pesticide Residues present pesticide residues levels that could
agronomic efficacy assessment of crop in Food – PARA – coordinated by ANVISA, pose a health risk.
protection products. analyzes fresh food samples collected at
sale points.

37 | A Sustainable Journey
THE NUMBER OF BIOLOGICAL CROP PROTECTION PRODUCTS REGISTERED IN THE LAST
20 YEARS IN BRAZIL IS GREATER THAN THE NUMBER OF CHEMICAL PRODUCTS

In view of the integrated pest management such as fertilizers and pesticides. The program
(IPM), a greater diversity of pesticides for crop is not aimed at organic agriculture, but at all
protection is essential. This fact significantly farmers in the country in the most diverse
In recent times, there has been significant growth in the interest in the development of biological
contributes to the intensification of the production models.
products for crop protection. The enthusiasm is not limited to big crop protection companies, but
development of biological control products.
it is also observed among small companies and startups.
For a biological product to be registered in
Between the 1960s and 1980s, there were very Brazil, it has to follow the same path as chemical
few launches of new biological crop protection products: the assessment is carried out by three
CLASSIFICATION OF BIOLOGICAL CONTROL PRODUCTS products. The situation began to change in the independent bodies – ANVISA, for health risks;
1990s. In the last 20 years, the number of new IBAMA, for environmental risks; and MAPA,
biological products registered has surpassed for agronomic efficiency. The product is only
NATURAL CHEMICAL SUBSTANCES the number of chemical products registered registered if it is approved by the three bodies.
in the period.
In 2020, 96 new biological products were
SEMIOCHEMICALS BIOCHEMICALS
An additional stimulus to the adoption of registered in Brazil, an annual record. A
(COMPOUNDS THAT INDUCE BEHAVIORAL (COMPOUNDS OF NATURAL ORIGIN THAT
RESPONSES IN TARGET ORGANISMS) CONTROL PESTS AND DISEASES)
biological products in the field came with the consolidated table from May 2021 showed a
launch of the National Bioinputs Program, in total of 433 registration granted since 1991.
2020. The Program aims to encourage research,
production and adoption of biological products,

ALLELOCHEMICAL GROWTH REGULATING


PHENOMENA HORMONES ENZYMES BIOLOGICAL PRODUCTS APPROVED IN BRAZIL SINCE 1991

450 433
12.20%
400 Biochemicals
BIOLOGICAL CONTROL AGENTS
350
(LIVING ORGANISMS THAT CONTROL PEST AND DISEASE POPULATION)
10.20%
300 Semiochemicals
62.10%
250 Microorganisms
MICROBIOLOGICALS MACROBIOLOGICALS
15.50%
200 Macroorganisms

150

100
96
50 44
VIRUS
50 31 38 38 21
INSECTS 3 3 3 5 3 3 9 5 4 4 6 4 7 3 14 16 9 8
2 2 2
BACTERIA
MITES 0
PROTOZOA

2000

2008
2006
2004

2009
2005
2003
2002

2007

2020

Total
2001

2010
1998

2018
1999

2016
2014

2019
1995
1993

2015
2013
1997

2012

2017

2021
1991

2011
NEMATODES
FUNGI

source: MAPA e Croplife Brasil (2020)


Microorganisms Macroorganisms Semiochemicals Biochemicals
source: MAPA (2021)

38 | A Sustainable Journey
DIGITAL AGRICULTURE SAVES INPUTS AND NATURAL RESOURCES

In recent decades, information technology has This makes it possible to rationalize the use
opened up a great field of innovation for many of inputs, which brings two very important
activities, and agriculture has not been left out advantages: the reduction in farming costs
of this evolution. and environment conservation. Brazilian Internet of Things (IoT):
agriculture has already entered the digital age. The internet is increasingly about things, not just people.
With detailed and real-time data on the soil, Machines, animals, plants and vehicles are connected to it so that they can be activated
seeds, crops and crop development, today’s The possibilities created in the digital age through remote commands based on the information received;
farmer has the opportunity to monitor his are huge and are constantly growing. Among
activity with an accuracy that would have been others, it is possible to highlight the main
unthinkable in previous generations. technologies in use in Brazil:
MONITORING SENSORS:
(plugged into machines, equipment and ground);

INCREASED
PRODUCTVITY;
EXPANDED ARTIFICIAL INTELLIGENCE:
INFORMATION PRECISION machines are capable of learning and making decisions;
POWER; IRRIGATION;

SELF-DRIVING VEHICLES:
GREATER tractors, robots and drones that do not require human driving;
INFORMATION
SHARING;

BIG DATA by INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT):


data storage in large quantities;

IMPROVED
CLOUD COMPUTING and BLOCKCHAIN DATA PROTECTION:
PRODUCTIVE TERRITORIAL
Connectivity between mobile devices;
CHAINS; MANAGEMENT AND
EFFICIENT LAND USE;
source: Croplife Brasil

INTELLIGENT IRRIGATION SYSTEM: the water is applied into the soil according to
the plant’s water requirement. Applications and software determine the amount of
water to be applied through data collected by sensors;

GREATER CITY/ EMBEDDED SYSTEMS FOR TRACTORS, HARVESTERS AND SPRAYERS:


COUNTRY INTEGRATION; technologies embedded in agricultural machines, such as GPS and spraying controllers,
which facilitate and optimize the rural producer’s work. With embedded technology,
the farmer has electronic control from planting to harvesting.
IMPROVED
WASTE AQUACULTURAL;
MONITORING; PRODUCTION

39 | A Sustainable Journey
SINCE 2017, THE USE OF DRONES IN BRAZIL HAS
BEEN REGULATED BY THREE GOVERNMENT BODIES:

The National Telecommunications Agency The National Civil Aviation Agency (Agência The Department of Airspace Control
(Agência Nacional de Telecomunicações Nacional de Aviação Civil - ANAC) regulates (Departamento de Controle do Espaço
- Anatel) is responsible for recording the the devices. Those weighing up to 250 Aéreo - Decea) is responsible for the
radio frequencies used by the drone and grams, generally used for recreation, do traffic of all vehicles in Brazilian airspace,
its remote controls. The goal is to avoid not need to be registered, but are subject including unmanned vehicles, in the case
conflicts between frequencies. to rules that limit their use. From there, of drones. It monitors compliance with
drones fall into 3 categories: up to 25 the rules they must obey, according to
kg, up to 150 kg and more than 150 kg. their category, and imposes fines in case
Each category has specific permissions of non-compliance.
and requirements.

40 | A Sustainable Journey
AGRICULTURE
SOCIAL AND ENVIRONMENTAL IMPACTS
66% OF BRAZILIAN TERRITORY IS OCCUPIED BY NATIVE VEGETATION

Brazil has used the most modern technologies together with The total area dedicated to all agricultural activities represents
conservation practices and diversification techniques, such as Despite all the expansion of the last 50 years, 30.2% of the Brazilian territory and the native vegetation
integration systems that involve farming, livestock, and forestry, agriculture does not exceed 7.8% of the Brazilian preservation area occupies 66.3%. Given this distribution and the
thus resulting in a high capacity to increase production without territory. Pastures account for 21.2% and planted observations on the existence of large extensions of degraded
opening new areas of native vegetation. pastures, specialists claim that the incorporation of new areas
forests occupy 1.2%.
for grain production in the coming years may occur on degraded
According to Embrapa, 66.3% of the country’s total area remains areas, with the use of technologies and conservation practices,
native. Despite all the expansion of the last 50 years, agriculture avoiding the incorporation of native areas.
does not exceed 7.8% of the Brazilian territory. Pastures account
for 21.2% and planted forests occupy 1.2%.

LAND USE IN BRAZIL LAND USE IN THE USA LAND USE IN EUROPE

66.3%
74.3%
AREA FOR PROTECTED
AND PRESERVED AGRICULTURAL USE 64.7%
10.4% VEGETATION
PLANTED AND EXPLORED FORESTS
INTEGRAL
CONSERVATION 23.0%
25.6% UNITS
29.0% 9.4% PLANTED AND
EXPLORED FORESTS 1.2%
MIXED
13.8%
AREAS FOR THE
PRESERVATION OF PASTURES AREAS UNTOUCHED FORESTS

7.3%
VEGETATION IN THE RURAL
WORLD IN CAR INDIGENOUS
LANDS 8.9% PASTURES
4.6%
19.9%
OTHER PROTECTED
CONSERVATION FORESTS

8.0% 16.5% 27.9% UNIT


INDIGENOUS AREAS FOR THE PROTECTION 10.4%
PLANTED AND LANDS
NATIVE
PASTURES
NATIVE VEGETATION
ON VACANT AND EXPLORED
8.7%
AND PRESERVATION OF
NATIVE VEGETATION 25.0% LOW NATIVE
VEGETATION 19.8%
FORESTS
13.2% 1.2%
UNREGISTERED LAND
NATIVE VEGETATION
ON VACANT AND
AGRICULTURE
3.6%
NATIVE VEGETATION

PLANTED PLANTED UNREGISTERED


PASTURES NATIVE
FORESTS LAND
17.4%
FIELDS

7.8% CROPS
CROPS

3.5
%

30.2%
NATURALLY WITHOUT VEGETATION
INFRASTRUCTURE AND OTHERS INFRASTRUCTURE AND OTHERS

AGRICULTURAL USE INFRASTRUCTURE AND OTHERS


source: EMBRAPA (2018) source: EMBRAPA (2018) source: EMBRAPA (2018)

42 | A Sustainable Journey
The extension of the preserved native While Brazil dedicates 30.2% of its area to
Area
vegetation area in Brazil corresponds to that agriculture and forestry exploitation, the Land use in Brazil (millions of ha) % of Area
of 43 countries and 5 territories in Europe. United States uses 74.3% and the European
Native vegetation on private properties
The area of native vegetation protected by Union 64.7%.
farmers on their properties is also expressive. Native vegetation on vacant properties
Its extension corresponds to the area of 10 In both cases, the percentages are more Indigenous land
countries in Europe. than twice the Brazilian percentage. On the Planted plasture
other hand, while Brazil dedicates 66.3% of
Integral conservation unit
its territory to the nature protection, this
While Brazil dedicates 30.2% of its index falls to 19.9% in the United States and Native pastures
area to agriculture and forestry 17.9% in the European Union. Agriculture
exploitation, the United States Infrastructure and others
uses 74.3% and the European Planted forests
Union 64.7%.
source: Embrapa Territorial (2018)

The extension of the preserved The area of native vegetation protected


native vegetation area in Brazil by farmers on their properties
corresponds to corresponds to

43 COUNTRIES 10 EUROPEAN
AND 5 TERRITORIES OF EUROPE
COUNTRIES

43 | A Sustainable Journey
THE EUROPEAN LAND USE IS VERY
DISTINCT FROM THE BRAZILIAN ONE

Since the European it is observed that the However, the data do not indicate that native vegetation
Union is located in a Two estimates used by vegetation there can is being cleared. On the contrary, forests are currently
territory that has been the European Parliament be of natural or planted expanding in the European Union and the use of sustainable
intensively explored origin. Regarding forest management techniques in their exploration has ensured
in public policy debates, their survival.
for longer than the area, planted forests
Americas, and due to shed a little more light are not distinguished
its greater demographic on the situation of native from native forests The fact that there is little untouched native vegetation does
density, it has land use vegetation in the Region. either. Two estimates not diminish Europeans’ efforts to protect as much of what
characteristics that they have left as possible. According to the latest report
One is that only 4% of used by the European
distinguish it from Parliament in public from Natura 2000, the European Union’s flora and fauna
Brazil and the United forests remain untouched. policy debates, shed preservation network, the Region has 27,852 terrestrial and
States. The level of The other estimate is a little more light on marine protected areas. Of quite different sizes, the smallest
human interference is that 80% of the forests the situation of native land area is just 100 m² and is located in Germany; and the
such that the Region’s largest one is in Sweden, with 5,547 km².
in the European Union are ve g e t at i o n i n t h e
environmental agency, Region. One is that only
when presenting data
commercially exploited. 4% of forests remain Natura 2000 protects 20% of the European Union’s
from its Monitoring untouched. forest area, five times more than the area covered by
Service - Cornelius -, untouched forests.
does not disclose accurate numbers The other estimate is that 80% of the
on native vegetation preservation. forests in the European Union are Most of the area protected by the network – 60% – is
Whenever referring to forests, native commercially exploited. composed, in addition to forests, by native grasslands
fields and areas covered by shrubs, and transition areas which, despite human intervention,
still have a good part of their original coverage. Another
important point is that there are protected areas, in small
native fragments, even in regions that are intended for
agricultural exploitation.

44 | A Sustainable Journey
ILLEGAL DEFORESTATION IS NOT A RULE IN BRAZIL

AMAZON FIRE X DEFORESTATION


Deforestation is considered illegal when it traditional fires, carried out in cultivated HOTSPOTS (number) DEFORESTATION (km²)
occurs in areas that do not have authorization areas or pastures, it is clear that they are
from the environmental agency to suppress not related to deforestation. They occur in 25000
native vegetation. regions that have already been deforested,
possibly centuries ago. On the other hand, the
20000
When deforestation is authorized by the unsustainable and criminal exploitation of wood
environmental agency, based on studies that from native species, which is a serious problem
15000
prove its compliance with forest legislation, it in the Amazon, devastates the forest without
is not considered illegal. In addition, several using fire, at least initially. When the fire comes,
important criteria for transparency in the if any, the area is already deforested. 10000

processes of native vegetation suppression are


observed, such as: identification of applicants, Data from the National Institute for Space 5000

format, date of issue, validity and area. Research (INPE) show how the evolution of fires
was different from deforestation in the Amazon 0

Commonly, the terms deforestation and fires in between 1998 and 2018. The fire line is visibly

1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
the field are erroneously associated. Although more unstable than the deforestation line.
fires and deforestation are closely related source: INPE (2020)
phenomena, they cannot be confused.
Each one has its own dynamics. When taking
into account that many hotspots come from When it comes to deforestation, two biomes require special attention in
Brazil: the Cerrado, where most of the agricultural growth in recent decades
has taken place; and the Amazon, given the importance of its forest for the
balance of the global environment.

45 | A Sustainable Journey
49% OF THE BRAZILIAN AMAZON IS PRESERVED BY LAW

Before approaching deforestation in the Amazon, it should be noted that the Amazon is
part of a biome that is not exclusively Brazilian. The biome is shared by nine countries,
one of which is a European country, France, of which French Guiana is a part.

AMAZON BIOME

GUIANA Native vegetation covers 84% of the


SURINAME Brazilian Amazon territory, which

VENEZUELA FRENCH
GUIANA
corresponds to 3.52 million km²
and is equivalent to the sum of 15
84%
European countries.
COLOMBIA
ECUADOR

BRAZIL
PERU

BOLIVIA
source: EMBRAPA (2018)

The Brazilian Amazon has 4.2


million km², which corresponds
to 60% of the total biome and
49% of the Brazilian territory.
Almost half (49%) of the Brazilian Amazon area covered by native vegetation corresponds to
environmental preservation units and indigenous reserves. It is a law-protected territory. Private
owners own 26% of the area and the other 25% are vacant land.
source: EMBRAPA (2018)

VACANT LAND 25% ENVIRONMENTAL PRESERVATION


49% AND INDIGENOUS RESERVES
source: EMBRAPA (2018)

PRIVATE AREAS 26%

46 | A Sustainable Journey
Since 2005, Brazil has established goals for the progressive target of 4,981 km² was not even half of what was actually AMAZON DEFORESTATION (km²)
reduction of deforestation in the Amazon and Cerrado. seen: effective deforestation of 10,129 km².
The Action Plan for the Prevention and Control of
ACTUAL DEFORESTATION TARGET DEFORESTATION
Deforestation in the Legal Amazon (PPCDAm), which was
launched in 2004 and elaborated within the scope of the Even though the goal has not been reached
Permanent Interministerial Working Group (GPTI), and since 2018, it is necessary to recognize the 30000
is currently in its fourth phase, set a target for 2020 that
positive effect of the PPCDAm. Just compare
the deforestation area was no greater than 20% of the 25000

average for the period 1996 to 2005. As it was 19,625 km² the average annual deforestation rate in the
average: 19,625
per year, the target Amazon deforestation in 2020 would Amazon over the last 20 years, which was 20000

correspond to a maximum of 3,925 km². 12,208 km², with that of the last 10 years: 15000
which is 6,763 km².
The plan cannot be considered fully successful, since there
10000
are signs that deforestation numbers in the Amazon in
2020 have been greater than expected. However, by 2017,
5000
the pattern of behavior was more favorable, when the Even though the goal has not been reached since 2018, it is
target annual deforestation was 7,073 km², higher than necessary to recognize the positive effect of the PPCDAm. 0
the actual deforestation rate, which was 6,947 km². The Just compare the average annual deforestation rate in the

1996

1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
problem started in 2018, when the target deforestation Amazon over the last 20 years, which was 12,208 km², with
was 6,027 km² and the actual deforestation was that of the last 10 years: which is 6,763 km².
source: MMA com dados do sistema PRODES; INPE (2020)
7,563 km². And the situation worsened in 2019, when the

The reduction in Amazon deforestation has received an The monitoring of compliance with the moratorium is
invaluable contribution from two Brazilian agribusiness carried out systematically, via satellite, in the group of
organizations: the Brazilian Association of Vegetable Amazonian municipalities that concentrate the largest
Oil Industries (Associação Brasileira das Indústrias de production area. The list is updated on an ongoing basis. AMAZON DEFORESTATION (km²)
Óleos Vegetais - Abiove) and National Association of In the 2018/2019 harvest, the monitored municipalities
Grain Exporters (Associação Nacional dos Exportadores accounted for 98% of the soy cultivation area in the 30000
de Cereais - Anec). biome. The 2% of unmonitored areas were spread over
77 municipalities. 25000

In 2006, the two entities declared a Soy Moratorium


in the Amazon biome. This is a commitment of the The initiative’s good results are evident. The balance of 20000 average: 12,208 (last 20 years)
companies associated with them not to purchase soy the 2018/2019 harvest showed that only 1.8% of the soy
from new areas of deforestation in the biome. planted in the Amazon was found in areas deforested 15000

after the declaration of the moratorium. There are 88,234


10000
hectares. The other 98.2% were cultivated in areas that 6,763 (last 10 years)
The balance of the 2018/2019 harvest showed had been previously deforested, mainly for the opening 5000

that only 1.8% of the soy planted in the Amazon of pastures.


was found in areas deforested after the 0

2000

2008
2006
2004

2009
2005
2003
2002

2007

2020
2001

2010
1998

2018
1999

2016
2014

2019
2015
2013
2012

2017
2011
declaration of the moratorium.
source: MMA com dados do sistema PRODES (2020)

47 | A Sustainable Journey
52.5% OF THE CERRADO BIOME IS
COVERED BY NATIVE VEGETATION

The goal established by the Action Plan for the Prevention and Control of As in the Amazon, the vegetable oil industry has also been working to preserve
Deforestation in the Cerrado (PPCerrado) adopted as a starting point the estimate Cerrado’s environment. A study by Abiove and Agrosatélite showed that native
that the average deforestation in the biome between 1999 and 2008 was 15,700 vegetation covers 52.5% of the biome, despite the expansion of Brazilian agriculture
km². In fact, it was higher, according to INPE data. in the region in recent decades.
In addition, the study points out ways for the soy crop to expand without causing
Anyway, this estimated average of 15,700 km² was the basis for the Plan to deforestation. Currently, soy occupies only 8.9% of the Cerrado and could
establish, in 2009, that in 2020 deforestation should not exceed 9,421 km², that technically exploit another 21.9% in already deforested areas, corresponding to
is, it should drop 40%. 43.9 million hectares.

The plan reached 2019 with deforestation of 6,484 km², a rate 31% below the There are also 25.39 million hectares covered with native vegetation, which are
target for the year. suitable for soybeans cultivation and can be deforested without violating Brazilian
environmental legislation. This area corresponds to 12.4% of the Cerrado.

CERRADO DEFORESTATION REDUCTION PLAN (km²)


ACTUAL DEFORESTATION TARGET DEFORESTATION

35.000

30.000

25.000

20.000 average: 15,700

15.000

10.000

5.000

0
2002

2003

2004

2005
2006

2007

2008
2009
2010

2011
2012

2013
2014

2015
2016

2017
2018

2019
2020
2001

source: MMA com dados do sistema PRODES; INPE (2020)

48 | A Sustainable Journey
In order to encourage the preservation of native The payment for environmental services, which
vegetation in this agronomically and legally suitable began to be adopted in the world in the 1990s, gained
area to be explored for the cultivation of soybeans, a greater incentive in 2008, when the FAO (Food and
Abiove, in partnership with Agrossatélite, has created Agriculture Organization of the United Nations)
a mechanism to make it easier for the producer to declared that this was the most effective method
enter the environmental services market. to guarantee the preservation of native vegetation.

49 | A Sustainable Journey
BRAZILIAN AGRICULTURAL PRODUCERS FOLLOW
STRICT ENVIRONMENTAL REQUIREMENTS
In addition to the positive environmental effects large and small watercourses, ponds and
resulting from the incorporation of various lakes. Additionally, they must preserve other
technologies associated with production, such areas such as those surrounding the springs,
as rational use of inputs, water-saving, crop steep slopes and hilltops. These are called
protection products and lower Permanent Protection Areas
emissions due to the adoption of The 2012 Forest Code (APP) In order to make
biotechnology, the compliance compliance possible, the
e s t a b l i s h e s t h a t
of producers with the Forest Forest Code established two 80%
Code is essential when it comes all properties have instruments. The first is the
to sustainability. a minimum native Rural Environmental Registry
vegetation reserve (CAR), in which the producer 20%
The 2012 Forest Code establishes
area. It is called the
registers his/ her property with 20%
para
that all properties have a the Ministry of Agriculture.
minimum native vegetation Legal Reserve (RL),
35%
reserve area. It is called the Legal which depending on If the property fails to comply
Reserve (RL), which depending the type of vegetation with environmental legislation, AMAZON
on the type of vegetation and
and biome, should the producer must use the 20%
biome, should occupy 20% to second instrument created by ATLANTIC FOREST
80% of the property’s area. occupy 20% to 80% of the Forest Code, which is the 20%
CAATINGA
the property’s area. Environmental Regularization
Program (PRA). In addition CERRADO
In the Amazon biome, the area to the federal government’s PAMPA
intended for the Legal Reserve PRA, there are equivalent
must be 80% of the total area, 35% in the programs in 18 states. By adhering to one PANTANAL 20%
Cerrado and 20% in then other biomes. In of them, the producer must recover his/ her
addition to the Legal Reserve, producers property so as to bring it in accordance with
must protect the areas on the banks of environmental legislation.

Forest Code

Legal Reserve (RL): reserve area for native vegetation, which depending on the type
of vegetation and biome, should occupy 20% to 80% of the property’s area.

Permanent Protection Areas (APP): protection of the banks of watercourses, in


addition to areas surrounding springs, steep slopes and hilltops.

Rural Environmental Registry (CAR): property registration with the Ministry of


Agriculture, describing its current reality in terms of economic exploitation and
environmental preservation.

Environmental Regularization Program (PRA): recovery of the property to bring it in


accordance with environmental legislation. Non-compliant properties must adhere
to the program in order to avoid possible punishment.

50 | A Sustainable Journey
RECOGNITION FOR THOSE WHO PRESERVE NATURE IS
ALREADY A REALITY IN BRAZIL

The intense use of natural resources generates externalities with potential impacts on However, even before the definition of the legal framework, several initiatives were being
society and future generations. The basic premise for the payment for environmental developed for the implementation of PSA in Brazil.
services is to compensate those who manage the environment in such a way that benefits
society as a whole.

PAYMENT FOR ENVIRONMENTAL SERVICES (PSA) PROGRAMS

AMAZON FUND FOREST PROGRAM +


It was instituted by Decree No. 6,527 of August 1st, 2009, which It was launched in July 2020 by the Ministry of the Environment with the
provides for financing actions that contribute to the prevention, objective of paying for environmental services, for various activities
monitoring and fight against forest deforestation, in addition to aimed at native vegetation protection. They include monitoring,
promoting the conservation and sustainable use of forests in the surveillance and firefighting, planting trees, environmental inventory,
Amazon biome. installing agroforestry systems and research.

The initiative’s objective is to reduce greenhouse gas emissions into The Program is aimed at all rural producers and landowners from
the atmosphere, resulting from deforested and burned areas in the all biomes. In the initial phase, a pilot project will be tested in the
Brazilian Amazon. Amazon, with a budget of 500 million reais (about 90 million dollars).

51 | A Sustainable Journey
PSA INITIATIVES LINKED TO BRAZILIAN MUNICIPALITIES

INITIATIVE PLACE
Projeto Conservador das Águas Extrema - MG
Projeto Produtores de Água e Floresta Rio Claro - RJ
Projeto Produtor de Água no Pipiripau Brasília - DF
Produtor de Água no Descoberto Brasília - DF
Projeto Produtor de Água João Leite Goiânia - GO
Produtores de Água Rio Verde - GO
Projeto Recuperação do Rio Capivari Bom Despacho - MG
Projeto Ambrósio Captólio - MG
Projeto de Conservação de Água e Solo Carmo do Cajuru - MG
Projeto Perobas Doresópolis - MG
Projeto Santuário das Águas Formiga - MG
Projeto Guardião dos Igarapés Igarapé - MG
Projeto Conservador das Águas Nova Serrana - MG
Projeto Bocaina - Produtor de Água Passos - MG
Projeto Oásis - Nascentes de Pimenta Pimenta - MG
Projeto Araras Piumhi - MG
Produtor de Água na bacia do Rio Mutum Uberaba - MG
Manancial Vivo Campo Grande - MS
Projeto Conservador das Águas Brasil Novo - PA
Projeto Rio Sesmaria Resende - RJ
Projeto Protetor das Águas Vera Cruz - RS
Projeto Produtor de Água no Rio Camboriú Balneário Camboriú - SC
Projeto Produtor de Água Canindé do São Francisco - SE
Conservador das Águas na Bacia do Rio Batalha Bauru - SP
Bacias Jaguariúna Jaguariúna - SP
Projeto Produtor de Água no PCJ Joanópolis e Nazaré Paulista - SP
Projeto Produtor de Água Ribeirão Lajeado Penápolis - SP
Produtor de Água Salesópolis Salesópolis - SP
Mais Água São José dos Campos - SP

52 | A Sustainable Journey
LOW CARBON AGRICULTURE
IS AN OFFICIAL PROGRAM
Good agricultural practices were included as part of Brazil’s efforts towards voluntary commitment to reduce greenhouse gas emissions, assumed at the 15th
Conference of the Parties (COP15), held in 2009 in Copenhagen. In 2011, the Brazilian government launched the National Plan for Low Carbon Emission in Agriculture
(ABC Plan), with the objective of encouraging the adoption of more resilient techniques, with greater productive gains and low carbon emission by rural producers.

The goals established by the ABC Plan were set for the year 2020, and by 2018 several goals had already been surpassed. A total of six technologies are encouraged
by the ABC Plan:

1. RECOVERY OF DEGRADED PASTURE (RDP):

Degraded pastures are the result of insufficient investments and inadequate The recovery of degraded areas has the potential to increase productivity, through
management. It is estimated that the country has around 168 million hectares of the greater stocking of animals, improved forage, and mitigation of carbon emissions
pastures and that 26.7% of this area is in a state of severe degradation, 38.7% is in the activity. The target established in the ABC Plan was the recovery of 15 million
moderately degraded and 41.1% is in good condition. hectares of pastures by 2020. It is estimated that by 2018, 70% of the total would
have been achieved, but these estimates vary depending on the methodology adopted.

53 | A Sustainable Journey
2. INTEGRATED CROP-LIVESTOCK-FORESTRY SYSTEMS (ICLFS) 3. NO-TILL FARMING:

It is a sustainable production strategy that Among the factors that explain this low adoption This practice consists in reducing soil mobilization This practice has been increasingly adopted in
integrates agriculture, livestock and planted of ILPF systems, cultural aspects, the need for the at the time of planting, by limiting it to the sowing Brazil and was one of the main factors responsible
forests in combinations that can vary greatly. initial investment, shortage of qualified labor, lack line or pit. Thus, the ground cover is maintained for the growth of Brazilian agriculture in recent
Research conducted in various regions of Brazil of information and technical assistance stand out. and the interval between the harvest and the new decades. The plan was drawn up until 2020 aimed
indicates that integration systems contribute to planting is reduced or even suppressed. The system at incorporating 8 million hectares to this practice,
the preservation of soil quality, water conservation, However, the objective of the ABC Plan was to adopt contributes to soil conservation and, by preventing but by 2018 the area had already reached 159% of
better animal performance by increasing thermal Crop-Livestock-Forest Integration techniques in erosion, it also favors water preservation. the initial objective.
comfort, mitigation of the effects of greenhouse 4 million hectares by 2020, and by 2018 the target
gases and enhanced synergy between the plant had already reached 146% of this amount. The system improves fertilizing efficiency, soil
species and animal husbandry. organic matter content, and reduces fossil
energy consumption by reducing the number of
Despite the potential benefits, the area occupied machine operations, thus mitigating the emission
by ILPF systems in Brazil is still small: 11.5 million of greenhouse gases.
hectares, or 5% of the area occupied by agriculture
and livestock.

4. BIOLOGICAL NITROGEN FIXATION (BNF): 5. PLANTED FORESTS: 6. ANIMAL MANURE MANAGEMENT:


One of the limitations of tropical and subtropical other producing countries, with a direct impact on Planted forests, in addition to reducing the
soils for agricultural production is due to their lack the trade balance. pressure on native forests, capture CO2 from Animal waste emits methane gas, one of the main
of nitrogen, an essential element for plant nutrition. the atmosphere, helping to reduce the effects causes of the greenhouse effect. Disposing them
Biological nitrogen fixation technology uses In Brazil, the other crops that can benefit from of global warming. correctly represents a direct contribution to the
microorganisms capable of converting nitrogen FBN are sugarcane, corn, common beans, cowpea, efforts to contain global warming.
from the atmosphere to make it assimilable by rice and wheat. Also concerning environmental The Plan’s objective was to plant 3 million
plants. benefits, FBN is a technology that can be used in hectares of forests and, in this case, only 21% of To this end, the ABC Plan encourages the adoption, by
efforts to recover degraded areas, especially where the goal had been reached by 2018. creators, of composting and biodigestion technologies
In addition to lowering farming costs, it protects the unsustainable use of the soil has resulted in the in the production of fertilizer and biogas. The plan
the environment, by increasing the organic matter loss of soil organic matter and loss of productivity. intended to stimulate the treatment of 4.4 million
in the soil and reducing the emission of greenhouse cubic meters of animal waste, and an estimated 39%
gases. In Brazil, the most significant contribution ABC Plan’s goal was to take the Biological Nitrogen of the target have been achieved by 2018.
of FBN was observed in the soybean crop, where the Fixation to over 5.5 million hectares, and an
use of inoculants, from the 1960s, has guaranteed estimated 193% of this goal had already been
the country’s competitiveness when compared to achieved that by 2018.

54 | A Sustainable Journey
TECHNOLOGIES ENCOURAGED BY THE ABC PLAN

RECOVERY OF DEGRADED PASTURE (RDP) NO-TILL FARMING

COMMITMENT ACHIEVED COMMITMENT ACHIEVED


(by 2020): (from 2010 to 2018): (by 2020): (FROM 2010 TO 2016):

To encourage the recovery of 15.0 million ha A total of 10.45 million ha of degraded pastures To encourage the adoption of 8.0 million ha A total of 12.72 million ha were planted using
of degraded pastures, in order to mitigate 83 were recovered, corresponding to 70% of of SPD in order to mitigate 16 to 20 million SPD, corresponding to 159% of the target,
to 104 million Mg CO2eq. the target, contributing with an amount Mg CO2eq. contributing to the mitigation of 23.28 million
between 39.57 and 57.52 million MgCO2eq and Mg CO2eq and 129% of the established target.
between 42 e 62% of the established target.

INTEGRATED CROP-LIVESTOCK-FORESTRY SYSTEMS (ICLFS) BIOLOGICAL NITROGEN FIXATION (BNF)

COMMITMENT ACHIEVED COMMITMENT ACHIEVED


(by 2020): (from 2010 to 2016): (by 2020): (from 2010 to 2016):

To encourage the adoption of 4.0 million ha A total of 5.83 million ha were converted into To encourage the adoption of 5.5 million ha of A total of 10.64 million ha were planted using
of ILPF in order to mitigate 18 to 22 million ILPF area, corresponding to 146% of the target, FBN in order to mitigate 10 million Mg CO2eq. FBN, corresponding to 193% of the target,
Mg CO2eq. contributing to the mitigation of 22.11 million Mg contributing to the mitigation from 18.03 to
CO2eq and 111% of the established target. 19.74 million Mg CO2eq and between 180 e
197% established target.

55 | A Sustainable Journey
PLANTED FORESTS ANIMAL MANURE MANAGEMENT

COMMITMENT ACHIEVED COMMITMENT ACHIEVED


(by 2020): (from 2010 to 2016): (by 2020): (from 2010 to 2016):

To encourage the planting of 3.0 million ha A total of 0.63 million ha of forests were planted
of FP in order to mitigate 8 to 10 million Mg for commercial purposes, corresponding to 21% Between 1.71 and 4.51 million m³ of swine
To encourage the treatment of 4.40 million m³
CO2eq. of the target, contributing to the mitigation of manure were treated, corresponding to a reach
of animal waste in order to mitigate 6.9 million
25.37 million Mg CO2eq, considering the carbon of 39 to 103% of the target treatment volume,
Mg CO2eq.
sequestration in biomass. contributing to the mitigation of 2.67 to 7.04
million Mg CO 2 eq. and a reach of 39 to 103% of
the target established for TDA.

56 | A Sustainable Journey
BRAZILIAN AGRIBUSINESS HAS BEEN CONTRIBUTING
TO MITIGATE CLIMATE CHANGE
In December 2020, Brazil shared with the UN Another important point was the decision to climate neutrality, that is, to sequester as much
(United Nations Framework Convention on create financial flows in order to promote the carbon from the atmosphere as it may emit.
Climate Change – UNFCCC) the update of its efforts necessary for the Agreement’s goal to be
goals to reduce the emission of greenhouse reached. Authorization for countries to continue By updating its international commitments
gases, in line with the Paris Agreement. to account for emission reductions occurring to protect the environment, Brazil has shown
outside their territory encourages the carbon consistency with a strong tradition. Since the
credit market. world became aware that natural resources
are finite, Brazil has been present at all major
Authorization for countries to continue
When Brazil ratified the Agreement, on September international meetings to debate and seek
to account for emission reductions 20th, 2016, the country’s first Intended solutions to the problem. It participated in the
occurring outside their territory Nationally Determined Contributions (INDC) 1st United Nations Conference on the Human
encourages the carbon credit market. were considered to achieve the global goal of Environment, the Stockholm Conference, in 1972.
reducing greenhouse gas emissions. It hosted the United Nations Conference on the
In this market, those who manage to
Environment and Sustainable Development,
reduce emissions obtain credits that can The Brazilian targets also include the industrial Eco-92, in Rio de Janeiro, which approved the
be traded with those who cannot. and transport sectors. The 2015 Brazilian Biodiversity Convention. It adhered to all major
contribution established, for 2025, the goal of multilateral environmental treaties, approved
reducing greenhouse gas emissions to 37% below laws and developed public policies to promote
the levels of 2005. In addition, it presented as an sustainable development.
Signed in 2015, the central point of the Agreement indicative target, for 2030, a reduction to 43%
was to establish as a goal that the global average below the levels of 2005.
temperature would not reach 2°C above pre-
industrial levels. For this purpose, each country The new contribution, from 2020, reaffirms the
must make its contribution, by adopting policies 2025 target and makes official the 2030 target,
that lead to the reduction of greenhouse which until then, was only an indicative. A new
gas emissions. indicative target, now for 2060, is to achieve

57 | A Sustainable Journey
INDC - INTENDED NATIONALLY DETERMINED CONTRIBUTIONS

SECTOR INDC PROPOSALS SECTOR INDC PROPOSALS


• Strengthen compliance with the Forest Code at the federal, • Increase the share of sustainable bioenergy in the Brazilian
state and municipal levels; energy matrix to approximately 18% by 2030, expanding the
consumption of advanced (second generation) biofuels, and
• Strengthen policies and measures with a view to achieving increasing the share of biodiesel in the diesel mixture;
zero illegal deforestation in the Brazilian Amazon by 2030 and
offsetting greenhouse gas emissions from legal vegetation • Achieve an estimated 45% share of renewable energy in the
clearing by 2030; composition of the energy matrix in 2030, including:

FOREST • Restore and reforest 12 million hectares of forests by 2030, ENERGY • Expand the use of renewable sources, in addition to
for multiple uses; hydropower, in the total energy matrix to a share of 28% to
33% by 2030;
• Expand the scale of sustainable management systems for
native forests, through georeferencing and traceability systems • Expand the domestic use of non-fossil energy sources,
applicable to the management of native forests, with a view to increasing the share of renewable energy (in addition to
discouraging illegal and unsustainable practices. hydropower) in the supply of electricity to at least 23% by
2030, including by increasing the share of wind, biomass and
solar energy;

• Achieve 20% efficiency gains in the electricity sector by 2030.

SECTOR INDC PROPOSALS

• Promote efficiency measures, improvements in transport


infrastructure and public transport in urban areas.

SECTOR INDC PROPOSALS


TRANSPORT

• Strengthen the National Plan for Low Carbon Emission in


Agriculture (ABC Plan) as the main strategy for sustainable
development in agriculture, including through the additional
SECTOR INDC PROPOSALS restoration of 15 million hectares of degraded pastures by 2030
and the increase of 5 million hectares of crop-livestock-forest
integration (iLPF) systems by 2030.
AGRICULTURE
• Promote new standards of clean technologies and expand
energy efficiency measures and low-carbon emission
source: MMA (2015)
infrastructure.

INDUSTRY

58 | A Sustainable Journey
BRAZIL HAS THE LARGEST SAFE DISPOSAL PROGRAM FOR CROP
PROTECTION PRODUCTS PACKAGING IN THE WORLD
Also concerning sustainability in the agricultural are jointly responsible for preventing them from Organized in all regions of the country, the Campo
sector, it is worth noting that Brazil has one of the most contaminating the environment. Limpo system brings together 112 companies, more
important programs for the disposal of solid residues than 4,500 crop protection products points of sale
of crop protection products in the world. and 1.8 million agricultural properties.
Since 2002, the Campo Limpo System has
The Campo Limpo System is an initiative developed Once used, the package is taken by the farmer to
by the crop protection products industry to ensure collected 550,000 tons of used crop protection collection stations or centers, or is collected by
the correct disposal of empty packaging. The Campo products packaging. In 2019, there were 45,563 traveling collection stations. Then, they are taken to 10
Limpo System is managed by the National Institute tons. It is estimated that this accounts for recyclers or incinerators. Of the packages collected,
for Processing Empty Packaging (inpEV), which about 94% of the packages sold in the year. 94% are recycled and reused, and 6% are incinerated.
has a partnership with around 100 companies and
organizations linked to the crop protection industry. Since 2002, the Campo Limpo System has collected
550,000 tons of used crop protection products
The System is based on the principle, already defined packaging. In 2019, there were 45,563 tons. It is
by law in Brazil, that the crop protection companies, Therefore, each sector has its role in the effort to estimated that this accounts for about 94% of the
distribution channels, farmers, and the government prevent packaging from becoming a threat to nature. packages sold in the year.

1 2

6 (b) Ready-to-market
product
Commercialization 3
b) Recycling
Use and
CAMPO LIMPO triple wash

SYSTEM FLOW
6 (a)
6 5 4
a) Incineration

Environmental-
friendly disposal Packaging
processing Return

59 | A Sustainable Journey
CAMPO LIMPO SYSTEM RESULTS
material disposal (%)

6%
Packaging
incinerated
550,000 45,563
(tons) (tons)
since 2002 in 2019

94%
Packaging
recycled and
reused
source: INPEV (2019)

Of the packages collected, 94% are recycled


and reused, and 6% are incinerated.

94%
packaging
sold in the year

60 | A Sustainable Journey
BRAZILIAN AGRIBUSINESS ENGAGES MANY PEOPLE
In 2019, the Brazilian agribusiness GDP accounted for 21.4% of the country’s total GDP. The sector was responsible for more than 18 million jobs, and agribusiness and services employed
3.8 million and 5.9 million people, respectively, while 226.8 thousand people were employed in the input segment. In the countryside, 8.2 million people were employed.

EMPLOYMENT IN BRAZILIAN AGRIBUSINESS


Sector Employment %
(million)

Agroindustry
Inputs Inputs 0.23 0.24
Agroservices Agroindustry 3.84 4.12
Agroservices 5.92 6.34
Primary Primary 8.26 8.84
Agribusiness/total 18.25 19.54
agribusiness accounts for Brazil/other sectors 75.14 80.46
Other sectors 19.54% of jobs in Brazil. Brazil/total 93.39 100
source: Cepea from data gathered by PNAD-Contínua and RAIS (2019)

An important piece of data to assess the effect of Kleffmann consultancy analyzed the HDI in soy, corn, Among the greatest advances presented in the human
agricultural advances in Brazil on people’s lives is the cotton and sugarcane producing municipalities in the development index in the period, soy-producing
evolution of the human development index (HDI) in Brazilian Cerrado, the main area of agricultural expansion municipalities in Tocantins, Maranhão, Piauí and Bahia
agricultural areas. The HDI is a development assessment in recent decades, and concluded that the index grew stood out, as well as Mato Grosso, which more than
measure that takes into account three basic dimensions: in a more markedly manner in these municipalities doubled the HDI values in the early 1990s.
per capita income, health and education. The closer this than in non-agricultural ones. The HDI grew 64% in
number is to 1, the greater the human development in municipalities that concentrate soy production, 65%
the region. in sugarcane producing municipalities, 73% in corn
producing municipalities, and 131% in municipalities
Between 1991 and 2010, the index calculated at the that concentrate cotton production.
municipal level, totaled for Brazil, went from 0.493 to
0.727, a 47% increase.
Planted HDI
MHDI MHDI MHDI
Rank Municipality Mesoregion State area evolution
1991 2000 2010
2010 (ha) (1991-2010)
Producing percentage 1st Campos Lindos Eastern Tocantins TO 48,000 0.14 0.34 0.54 294%
Municipalities HDI 1991 2010 growth
2 nd
Gaúcha do Norte Northern Mato Grosso MT 72,000 0.18 0.51 0.62 236%
Baixa Grande
3rd Southwest Piauí PI 73,761 0.20 0.35 0.56 179%
NON-AGRICULTURAL 0,4576 0,7166 57% do Ribeiro
4th Jaborandi Extreme Western Bahia BA 50,000 0.24 0.37 0.61 161%
SOY 0,4457 0,7292 64%
5 th
Ipiranga do Norte Northern Mato Grosso MT 171,850 0.28 0.60 0.73 160%
SUGARCANE 0,4426 0,729 65%
Santa Rita
6th do Trivelato Northern Mato Grosso MT 135,000 0.32 0.60 0.74 133%
COTTON 0,306 0,7071 131%
7th Tasso Fragoso Southern Maranhão MA 104,759 0.26 0.45 0.60 130%
CORN 0,4102 0,7099 73%
8 th
Riachão das Neves Extreme Western Bahia BA 64,194 0.27 0.39 0.58 116%

9th Correntina Extreme Western Bahia BA 101,000 0.28 0.44 0.60 116%
source: Kleffmann (2014)
10th Sapezal Northern Mato Grosso MT 378,167 0.34 0.60 0.73 115%

source: Kleffmann (2014)

61 | A Sustainable Journey
Another interesting aspect related to the HDI concerns In 2010, the same municipalities showed values above 0.449. education component in the period. Finally, for comparison
education. In the period from 1991 to 2010, the education- While in 1991 the HDI values in the education dimension were purposes, in São Paulo, longevity and income evolved 16% and
related index component showed a more accentuated between 0.07 and 0.309 in important producing municipalities 8%, while the education dimension increased 98% between
evolution than the others, despite the very low level of the in Mato Grosso, such regions started to present values above 1991 and 2010. The evolution of the education-related index
Brazilian general educational indicators. In the municipalities 0.62 in 2010. at a higher pace than the others, due to its importance for the
of Bahia dedicated to cotton, for example, the education- reduction of extreme poverty, has the potential to reduce the
associated HDIs were at levels below 0.08 in 1991, as observed Compared to the other components of the HDI, in the State deep inter-regional inequalities that characterize the social
in Correntina and São Desidério, while Bahia had overall values of Bahia, while the longevity and income dimensions grew 35% indicators in Brazil.
around 0.182 and Brazil 0.279. and 22%, respectively, between 1991 and 2010, the increase
related to education was 205%. In Mato Grosso, longevity
and income increased by 26% and 17%, against 187% of the

EDUCATION HDI IN 1991 AND 2010 IN THE MAIN DIMENSION OF BRAZILIAN HDI INDICES AND
MUNICIPALITIES OF PRODUCING REGIONS INDICATORS FROM 1991 TO 2010

1991 2010
0.279 1991 2000 2010 VAR 2010/1991
BRAZIL
0.637
IDH 0.386 0.512 0.660 71%
0.182 Longevity 0.582 0.680 0.783 35%
BAHIA
0.555
BAHIA Education 0.182 0.332 0.555 205%
CORRENTINA 0.08
(BA) Income 0.543 0.594 0.663 22%
0.481
SÃO DESIDÉRIO 0.077 IDH 0.449 0.601 0.725 61%
(BA)
0.449 MATO Longevity 0.654 0.740 0.821 26%
GROSSO
0.221 Education 0.221 0.426 0.635 187%
MATO GROSSO
0.635
Income 0.627 0.689 0.732 17%
CAMPO NOVO 0.254
DO PARECIS(MT)
0.649 IDH 0.578 0.702 0.783 35%
CAMPOS DE 0.226 SÃO Longevity 0.730 0.845 16%
JÚLIO(MT) 0.786
0.625 PAULO
Education 0.363 0.581 0.719 98%
LUCAS DO RIO 0.319
VERDE (MT) Income 0.729 0.756 0.789 8%
0.71
source: Atlas do Desenvolvimento Humano no Brasil. Pnud Brasil, Ipea and FJP (2020)
NOVA 0.18
MUTUM (MT) 0.673
PRIMAVERA In summary, the success of agriculture, indicators, thus contributing to reduce the
0.271
DO LESTE initially directly measured by the generation huge inequality among Brazilians in the various
(MT) 0.653
of local income, represents a real possibility regions of Brazil, in terms of living conditions
SAPEZAL 0.077 of expanding its effects to improve social and opportunities.
(MT) 0.62

SINOP 0.232
(MT) 0.682

SORRISO 0.286
(MT) 0.635
source: Atlas do Desenvolvimento Humano no Brasil. Pnud Brasil, Ipea and FJP (2020)

62 | A Sustainable Journey
ESG IN BRAZILIAN AGRIBUSINESS

The growing visibility of actions that take into It is evident that Brazil has undertaken a set
account the environment, social aspects and of efforts both in legislation and in business
governance, represented by the acronym ESG activities in order to value initiatives that
(Environmental, Social and Governance), and mitigate human action on the environment,
its growing valuation will translate into the especially in agricultural activities.
growing importance of these aspects in the
financing criteria, boosting initiatives that
prioritize the rational use of natural resources
and practices that mitigate the impacts
of production.

63 | A Sustainable Journey
GLOBAL
FOOD SECURITY
HUNGER IS A CHALLENGE TO BE OVERCOME WORLDWIDE

The current world population is 7.8 billion According to the United Nations (UN), the
WORLD POPULATION
inhabitants. The vast majority live in the least population of Africa will show the greatest
developed regions of the growth until 2030. 9 8.55
planet: 6.3 billion people. The expected increase 7.8 2020 2030
7.26
8

The outlook for the next But, while growth in more developed is 25.9%, followed by 7 6.53
10 years is that the regions will be 1.5%, in less developed The Oceania, with a
6
world’s population will regions it will be 11.2%, reaching a rate just below half of
grow 9.6% and reach 8.6 the African growth. 5

billion inhabitants. But,


total of 7.26 billion people Then the Americas and 4

while growth in more Asia will grow by similar 3

developed regions will be proportions.


1.5%, in less developed regions it will be
2
1.27 1.29
1
11.2%, reaching a total of 7.26 billion people. Finally, in Europe, the population will decline
over the next 10 years. 0

WORLD MORE DEVELOPED LESS DEVELOPED


REGIONS REGIONS
source: United Nations (2019)

WORLD POPULATION BY CONTINENT


(in billions of inhabitants)

2020 2030

NORTH
AMERICA
With this, the expected growth of WORLD ASIA
0.37 / 0.40 7.80 / 8.55 Among them, the goal of
the world population will be more
RATE: 7.1%
4.62 / 4.95
accentuated in regions with a more RATE: 9.6% “ending hunger, achieving food
RATE: 6.9%
challenging scenario related to security, improving nutrition,
hunger or undernourishment.
and promoting sustainable
Since hunger and undernourishment agriculture” gained significant
represent the greatest challenges EUROPE repercussions.
facing humanity, the topic has been
discussed in the most diverse forums 0.74 / 0.74
RATE: -0.5% Undernourishment, which had been
around the world. In 2015, the UN OCEANIA
declining since the beginning of the
General Assembly approved an 0.04 / 0.05 century, reached its lowest value in
Agenda for Sustainable Development, RATE: 12.5% 2014, with 628.9 million people, or
LATIN AMERICA AND
with 17 goals to be achieved by 2030. 8.6% of the world’s population. In
THE CARIBBEAN
Among them, the goal of “ending 2019, after five years of growth, the
hunger, achieving food security, 0.66 / 0.72 AFRICA problem affected 687.8 million people
improving nutrition, and promoting RATE: 8.1%
or 8.9% of humanity.
sustainable agriculture” gained 1,35 / 1,70
significant repercussions. RATE: 25,9%

source: United Nations (2019)

Note: The rate corresponds to the percentage population growth.

65 | A Sustainable Journey
SUSTAINABLE DEVELOPMENT GOALS (SDGS)

1 2
Prospects are not optimistic. According to FAO’s In addition to access to insufficient quantities, NO ZERO
latest report on the state of food security and there are also situations in which the varieties of POVERTY HUNGER
nutrition in the world, from 2020, hunger is food available result in an inadequate combination
expected to affect 841.4 million people in 2030, of nutrients, leading to undernourishment due to
or 9.8% of the world’s population. unbalanced diets. It can even trigger another
public health problem, i.e. obesity.
Many factors are associated with the problem.
Overall, events of war and natural disasters The lack of access to food in adequate quantity and
promote specific situations of discontinued or quality is accentuated by inequality. According to

3 4 5
insufficient access to food. However, the most current data, North America and Europe, which GOOD HEALTH QUALITY IGUALDADE
GENDER
AND WELL-BEING EDUCATION DE GÊNERO
EQUALITY
common case refers to insufficient income have a undernourishment rate below 2.5% of the
to purchase food, which leads to a chronic population, will not change their level, while in
problem that is not geographically limited. Africa, Latin America, and Oceania, the scenario
This fact is aggravated in the world by the is expected to worsen until 2030.
COVID-19 pandemic.

GLOBAL UNDERNOURISHMENT
6 7 8
CLEAN WATER AFFORDABLE AND DECENT WORK
AND SANITATION CLEAN ENERGY AND ECONOMIC
GROWTH

UNDERNOURISHMENT

reached its lowest point in 2014, with 628.9 million


people, or 8.6% of the world’s population;

9
INDUSTRY, SUSTAINABLE

IN 2019,
INNOVATION AND
INFRASTRUCTURE
10 REDUCED
INEQUALITIES 11 CITIES AND
COMMUNITIES
OUTLOOK 2030,
after five years of growth, the hunger will affect 841.4 million
problem affected 687.8 million people, or 9.8% of the world’s
people or 8.9% of humanity population.

source: FAO (2020)

RESPONSIBLE
12 CONSUMPTION
AND PRODUCTION
13 CLIMATE
ACTION 14 LIFE
BELOW WATER

15 LIFE
ON LAND 16 PEACE, JUSTICE
AND STRONG 17 PARTNERSHIPS
FOR THE GOALS
INSTITUTIONS

66 | A Sustainable Journey
WORLDWIDE UNDERNOURISHMENT PREVALENCE - PROJECTIONS 2030 (%)

NORTH
AMERICA

< 2,5 < 2,5


< 2,5
EUROPE
CENTRAL
ASIA < 2,5
7,4 13,1
EASTERN ASIA
WESTERN
NORTH
12,4 AFRICA
ASIA
SOUTH
CENTRAL 14,4 ASIA
AMERICA 33,6 SOUTHEAST
CARIBBEAN WESTERN
AFRICA EASTERN 9,5 ASIA
AFRICA 8,7 OCEANIA

23,0 38,0 7,0


7,7 CENTRAL
AFRICA
SOUTH
AMERICA
SOUTH
AFRICA
Note: Percentage values of undernourishment
prevalence projected until 2030, estimated
14,6
based on the percentages obtained in the
years 2005, 2010, 2015, 2016, 2017, 2018 and source: FAO (2020)
2019. Projections do not reflect the potential
impact of the COVID-19 pandemic.
RIGHT WAY ANY PROGRESS NO PROGRESS OR WORSENING

The “State of Food Security and Nutrition in the World” report, Products like nutrient-rich dairy, fruits, vegetables, and According to the report, in 2019, between a quarter and a third
produced jointly by the UN Food and Agriculture Organization protein-rich foods (both of plant and animal origin) are the of children under the age of five, around 191 million individuals,
(FAO), the International Fund for Agricultural Development most expensive food groups. suffered from wasting (progressive atrophy of organs) or
(IFAD), the United Nations Children’s Fund (UNICEF), the UN growth retardation. Another 38 million children under the age
World Food Program (WFP) and the World Health Organization The latest estimates are that three billion people or more of 5 were overweight. Among adults, obesity has become highly
(WHO), present evidence that a healthy diet costs much more cannot afford a healthy diet. In sub-Saharan Africa and South widespread.
than US$1.90 a day, the international poverty line. Asia, 57% of the population are in these conditions, although
no region, including North America and Europe, is completely
free of this situation.
Products like nutrient-rich dairy, fruits, vegetables,
and protein-rich foods (both of plant and animal
origin) are the most expensive food groups.

67 | A Sustainable Journey
It should be noted that making available a There is also a warning about trade barriers:
The cost of food, according to the FAO report, is an important factor to contain greater variety of high-protein products, which Governments must carefully assess the
hunger rates in the world and the deterioration in food quality. FAO’s report increases the possibilities of composing more impacts of the growing number of barriers to
presents the result of a survey conducted with data from 2017, which analyzes adequate diets, also constitutes an important international trade on the purchasing power of
three different types of diet: contribution to reducing food insecurity. nutritious food (including reduced non-tariff
measures to ensure food security). Trade-
restrictive policies tend to raise the cost of
Energy-sufficient diet: it provides the numbers of calories needed for daily food, which can be particularly harmful for
work. It contains starchy foods only, which can be corn, wheat or rice,
It should be noted that making countries that are net food importers.
1 depending on the country. available a greater variety of high-
protein products, which increases The challenges related to hunger or inadequate
the possibilities of composing more nutrition in the world give a special role to

adequate diets, also constitutes an


Nutrients-adequate diet: in addition to the calories mentioned above, it
2 includes carbohydrates, proteins, fats, vitamins, and minerals. important contribution to reducing
food insecurity.
In addition to quantity, the availability
of food options that allow for a richer
Healthy diet: it differs from the adequate diet by the greater variety of foods diet is very important. Brazilian
that make it up, in addition to a more rigorous balance. Although it varies contributions in both aspects are
according to age and individual needs, a healthy diet should have less than When relating food prices with the populations’ positive. Brazilian production is varied
3 30% of energy from fat, preferably unsaturated fats over saturated ones, and
should not contain trans fats. It should also have little sugar intake, at least
income, it is observed that more than 3 billion
people in the world are economically unable to
and generates exportable surpluses.
400 grams of fruits and vegetables a day, and a maximum of 5 grams of salt. have a healthy diet. This corresponds to 38.3%
of the world population. A nutrient-adequate
diet is out of reach for 1.5 billion people; and countries that produce food surpluses, such
even the energy-sufficient diet is unattainable as Brazil. An increased supply of agricultural
for 185 million people. products, though does not guarantee the
access of the entire population to the necessary
quantities and qualities, can contribute to
Trade-restrictive policies tend to reduced food costs and facilitated acquisition
DIET QUALITY LEVELS raise the cost of food, which can be of these goods by the most vulnerable
populations.
Healthy diet: more rigorously balanced with a
particularly harmful for countries
greater variety of foods. that are net food importers. In addition to quantity, the availability of food
options that allow for a richer diet is very
important. Brazilian contributions in both
Nutrient-adequate diet: it provides sufficient levels of aspects are positive. Brazilian production is
all essential nutrients. A series of policies have been recommended to varied and generates exportable surpluses.
mitigate the problem, such as investments and
social programs to improve the conditions of
Energy-sufficient diet: it provides the numbers of calories undernourished or malnourished populations.
required for daily work.

source: FAO (2020)

68 | A Sustainable Journey
GREATER FOOD PRODUCTION IN BRAZIL LOWERED
THE RELATIVE COST OF THE BASIC FOOD BASKET

The contribution of the agricultural sector to Brazilian society can Worldwide, the real food price index, according to the FAO (United
be illustrated by analyzing the evolution of the real price of the Nations Food and Agriculture Organization), showed the minimum The latest scenario reveals that the world faces a new
food basket composed of the most consumed food products in the value in 1987, reaching 48% of the 1974 value. At the highest point period of high food prices, with low global stocks. This
country. The reference food basket in Brazil has shown a reduction after the 2006 shock, reached in 2011, food was already equivalent should make Brazil’s growing surplus supply remain
in the real value for several decades and represented, in 2006, 43% to 86% of the values observed in 1974. Therefore, it is noted that the
valuable to the world for a long time to come.
of the value observed in December 1974. With the recovery of food greater agricultural offer in Brazil contained the increase in food
prices in the following years and in view of the Covid-19 pandemic, prices more effectively than what happened in the rest of the world.
the real value of the food basket, in 2020, returned to a level close The latest scenario reveals that the world faces a new period of
to 55% of the values from 1974. high food prices, with low global stocks. This should make Brazil’s
growing surplus supply remain valuable to the world for a long
time to come.

RELATIVE COST OF THE BASIC FOOD BASKET REAL FOOD PRICE


(Index* Dec/75=100)

160,0
137.4 +86%
140,0
+48%
118.8

120,0

100,0 66.9

80,0

60,0

40,0

20,0

0,0

2000

2008
2006
2004
2002

2020
1980

1990

2010
1988
1986
1984

1998

2018
1996
1994

2016
2014
1978

1982
1976
1974

1992

2012
Source: Calculations performed with data on the basic food basket relative cost from the
DIEESE (Departamento Intersindical de Estatística e Estudos Socioeconômicos) (2020)

source: FAO (2021)

69 | A Sustainable Journey
BRAZIL, A LEADING COUNTRY IN THE FIGHT AGAINST HUNGER IN THE WORLD

BRAZILIAN EXPORT
MAIN AGRIBUSINESS PRODUCTS
Brazil is able to remain a relevant Brazil exports around 40 agricultural products.
Exports Variation Exports Variation
producer in the next decade. According to data from the WTO (World Trade (US$ billions) (2019 - 2020) (billion tons) (2019 - 2020)
Organization), in 2018 the country had a 5.2% Product
share in world agricultural exports, only behind 2019 2020 Value 2019 2020 Weight

Brazil exports around 40 agricultural the European Union and the United States.
Almost every country in the world is Brazil’s Soy beans 26.1 28.6 9.6% 74.0 83.0 12.0%
products.
customer. Sales of agricultural products from
Brazil to the world grew by 4.1% in value and
9.4% in quantity in 2020, compared to the Fresh beef 6.6 7.5 13.8 1.6 1.7 9.9%
The country is currently ranked as the world’s previous year.
largest exporter of beef, chicken, soy, coffee, Raw cane sugar 4.5 7.4 65.2% 16.0 26.8 67.9%
orange juice and sugar, and the second largest
exporter of corn. Cellulose 7.5 6.0 -19.9% 15.3 16.2 6.0%

Soybean meal 5,9 5,9 1,0% 16,7 17,0 1,6%

Corn 7.2 5.9 -18.9% 42.7 34.6 - 18.9%


EVOLUTION OF AGRIBUSINESS EXPORTS
Exports (US$ billion) Growth compared to the previous year (%) Fresh chicken 6.7 5.7 -14.3% 4.1 4.0 -1.1%

Green coffee 4.6 5.0 8.7% 2.2 2.4 6.4%

Cotton 2.6 3.2 22.2% 1.6 2.1 31.7%


105
(not carded or
4.4% 5.4% 4.1% combed)
100
0.9% 99.9 -3.3% 101.2 -4.3% 100.8
13.0% Fresh Pork 1.5 2.1 42.5% 0.7 0.9 37.2%
95 96.7
95.7 96.0 96.9
Paper 2.0 1.8 -12.9% 2.2 2.1 -3.6%
90 -8.8%
88.2 -3.7% Unmanufactured 2.0 1.5 -26.2% 0.4 0.4 -6.9%
85 smoke
84.9
80
Orange juice 1.9 1.4 -25.4% 2.3 2.0 -9.2%

75
Refined sugar 0.7 1.4 95.9% 1.9 4.0 107.5%
2012 2013 2014 2015 2016 2017 2018 2019 2020
Ethyl alcohol 1.0 1.2 20.3% 1.5 2.2 40.2%
source: MDIC/ COMEX STAT (2021)

Others 16.2 16.4 1.0% 16.5 19.0 14.9%

Total 96.9 100,8 4,1% 199,7 218,4 9.4%


Agribusiness

source: MDIC/ COMEX STAT (2021)

70 | A Sustainable Journey
In terms of the geographic distribution of Brazilian North America ranked as the third destination for agribusiness China is the main buyer of five agricultural products that are
agribusiness exports, in 2020, more than half, i.e. 52.6%, exports, with an 8.6% share, and the main market was the United among the top 10 in Brazilian exports. In 2020, around 82% of total
were destined for countries in the Asia and Oceania region, States, with 6.9%. Approximately 6% of the total exported by exports to China were concentrated in three products: soybeans
and China was the main destination, with a 33.7% share. Brazilian agribusiness were destined to Africa. (61.5%), fresh beef (11.9%) and cellulose (8.4%). We highlight the
The European Union was the second-largest region, with 16.2%, growth of raw cane sugar, which grew 222.3% compared to 2019.
and North. In addition, the export of fresh pork practically doubled in the last
year. Finally, fresh beef sales to China grew 50.3% in the period.

In 2020, around 82% of total exports to China were


In 2020, more than half of Brazil’s agribusiness exports
concentrated in three products: soybeans (61.5%),
were destined for countries in the Asia and Oceania.
fresh beef (11.9%) and cellulose (8.4%).

MAIN DESTINATIONS OF BRAZILIAN


AGRIBUSINESS EXPORTS IN 2020

THE NETHERLANDS GERMANY


4.0% 2.1%
SPAIN TURKEY
USA 1.9% SOUTH KOREA
2.1% 2.2%
6.9% CHINA
33.7% JAPAN
2.5%
HONK KONG
2.0%
VIETNAM
2.2%

source: MDIC/ COMEX STAT (2021)

71 | A Sustainable Journey
BRAZILIAN EXPORT MAIN DESTINATIONS 2020 Other agricultural products, among the top 10 Brazilian exports, had Thailand,
Japan and Germany as the main buyers.

SUGARS AND MOLASSES: SOYBEAN MEAL:


JAN - NOV 2020 (US$ billion) JAN - NOV 2020 (US$ billion)
1,20
1,12
0,80
1,00 0,73 0,72
0,70
0,68

0,80 0,60
0,51 0,50 0,50
0,62 0,50
0,60 0,58
0,48 0,40
0,44
0,39 0,29 0,28
0,40 0,36 0,34 0,32
0,30
0,23 0,23
0,32
0,20
0,20
0,10

0,00 0,00
SAUDI
THAILAND INDONESIA NETHERLANDS FRANCE SOUTH GERMANY SPAIN VIETNAM SLOVENIA POLAND
CHINA BANGLADESH ALGERIA INDIA INDONESIA NIGERIA MOROCCO IRAQ MALAYSIA KOREA
ARABIA

source: SECEX (2020) source: SECEX (2020)

BEEF: UNGROUND CORN:


JAN - NOV 2020 (US$ billion) JAN - NOV 2020 (US$ billion)
0,70 0,66
4,00 3,63 0,64
3,50 0,60
0,51
3,00 0,50
2,50 0,40
0,40 0,37 0,36
2,00 0,34
1,50 0,30

1,00 0,75 0,20 0,19


0,20
0,38 0,34 0,14
0,50 0,18 0,15 0,14 0,14 0,12 0,10
0,10
0,00
SAUDI UNITED ARAB
CHINA HONGKONG EGYPT CHILE RUSSIA ITALY PHILIPPINES NETHERLANDS
ARABIA EMIRATES 0,00
JAPAN IRAN VIETNAM EGYPT TAIWAN SPAIN SOUTH MEXICO MALAYSIA MOROCCO
KOREA

source: SECEX (2020) source: SECEX (2020)

POULTRY: UNROASTED COFFEE


JAN - NOV 2020 (US$ billion) JAN - NOV 2020 (US$ billion)
1,00

0,90 0,86
1,40 0,82
1,20
1,17 0,80

1,00 0,70

0,80 0,60
0,61 0,60
0,60 0,50
0,38 0,41 0,39
0,40 0,40
0,22 0,18 0,18
0,20 0,13 0,12 0,11 0,30 0,26
0,00
0,20 0,14
CHINA SAUDI
ARABIA
JAPAN UNITED
ARAB EMIRATES
HONGKONG SOUTH
KOREA
SINGAPORE KUWAIT YEMEN SOUTH
AFRICA
0,10 0,10 0,09 0,09
0,10

0,00 UNITED
GERMANY BELGIUM ITALY JAPAN TURKEY RUSSIA SPAIN FRANCE CANADA
STATES

source: SECEX (2020) source: SECEX (2020)

72 | A Sustainable Journey
THE OUTLOOK FOR AGRICULTURAL PRODUCTION
IN BRAZIL IS QUITE OPTIMISTIC

CHALLENGES FOR 2030 AND THE ROLE OF BRAZIL


GRAINS (PROJECTIONS FOR 2030)
The projected growth for agriculture over the next 10 years makes Brazil 350
318,29
304,85
continue to play this leading role in the food supply. This projection was 291,42
300
264,57 277,99
disclosed in the study by the Ministry of Agriculture, Livestock and Supply
250
(MAPA) in 2020. According to the analysis, the growth of technology adoption
and productivity growth are expected to continue. 200

150
In the case of grains, the area is expected to grow 16.7% compared
100
68,14 70,27 72,31 74,34 76,37
to the 2019/2020 harvest, while the production is expected to
grow 26.9%. 50

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
In the case of grains, the area is expected to grow 16.7% compared to the
2019/2020 harvest, while the production is expected to grow 26.9%. Production (million tons) Area (million ha)

source: MAPA (2020)

73 | A Sustainable Journey
SOY (PROJECTIONS FOR 2030) SUGARCANE (PROJECTIONS FOR 2030)

180,00 900,00
156,51 740,04 771,46
160,00 149,18 800,00 708,62
134,53 141,85 677,20
140,00 127,26 700,00 645,95
600,00
120,00
500,00
100,00
Soy production is expected 80,00
400,00

to grow by 30.1% in the The increase in productivity 300,00


44,63 46,58
period, with an increase
60,00
38,78 40,73 42,68 will not be restricted to 200,00
of 26.4% in planted area.
40,00
grains. Sugarcane, the crop 100,00
8,48 8,77 9,07 9,38 9,68
20,00
that has launched commercial 0,00
0,00
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
agriculture in Brazil 500 years 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
ago, continues to improve
Production (million tons) Area (million ha)
Production (million tons) Area (million ha) productivity. By 2030, its
source: MAPA (2020) production is expected to source: MAPA (2020)
grow 20.0%, with an increase
of 14.6% in planted area.

CORN (PROJECTIONS FOR 2030) ORANGE (PROJECTIONS FOR 2030)

140,00
118,84 123,99
120,00 113,70 25,00
103,41 108,56
100,00
18,78 19,06 19,36 19,65
20,00 18,52
80,00
15,00
60,00 There are also products
Similar to soy, corn
production is expected to 40,00
expected to show a reduction 10,00
grow 21.2% until 2030, with 18,85 19,19 19,52 19,86 20,19 in the planted area and still
an increase of 9.1% in area. 20,00
increased production. This 5,00
0,00 is the case of orange, which 0,57 0,55 0,53 0,51 0,48
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 is expected to grow by 6.9% 0,00

Production (million tons) Area (million ha)


in production, with a drop of 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30

14.4% in the planted area. Production (million tons) Area (million ha)
source: MAPA (2020)

source: MAPA (2020)

Potato will probably be the most expressive case of


increased productivity.

A decrease in planted area of 21.7% with a production


growth of 14.5% is expected for it.

74 | A Sustainable Journey
COFFEE (PROJECTIONS FOR 2030) MEATS (PROJECTIONS FOR 2030)

80
68 70
70 65
60 63 20,00
17,34 18,17
16,49
60
14,81 15,70
15,00
50
10,69 10,66 11,05 11,48
10,20
40 10,00

30
4,39 4,62 4,84 5,06 5,28
5,00
20

10
1,83 1,82 1,79 1,75 1,73 0,00
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Chicken (million tons) Beef (million tons) Pork (million tons)
Production (million tons) Area (million ha)

source: MAPA (2020) source: MAPA (2020)

Coffee is expected to maintain the trend observed in recent decades, decreasing In the case of meat, the perspective is also for growth until 2030. The study projects
the planted area while increasing production. This crop has a peculiarity: its cycle is a growth of 28.1% for chicken. Pork is expected to be slightly behind, with an increase
biannual. A larger harvest, the so-called full harvest, is always followed by a smaller of 26.8%. The growth of beef production is not expected to be so great, 16.2%.
harvest, and vice versa. An area reduction of 8.0% with an increase of 22.6% in
production is expected by 2030, which will also be a full-harvest year.

Even though it is not enough to solve the of exportable surpluses, thus enabling
problem of undernourishment, an increased access to food, namely oilseeds,
food supply is a crucial way to overcome carbohydrates and animal proteins, to an
the difficulty of populations around the increasing number of people. Brazil is one
world in accessing an adequate diet. of the few countries that can meet this
Therefore, there is a growing expectation demand. And official projections reveal
that the world’s food supply capacity will that the country is ready for the challenge.
be guaranteed, as well as the generation

75 | A Sustainable Journey

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