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United States Department of Agriculture Foreign Agricultural Service Clay Hamilton Agricultural Minister Counselor US Embassy, Brazil
United States Department of AgricultureForeign Agricultural Service
Clay HamiltonAgricultural Minister Counselor
US Embassy, Brazil
United States Department of AgricultureForeign Agricultural Service
Why Brazil?
• Third largest agricultural producer behind the United States and China.
• Potential crop area expansion• Technologically advanced • 2nd largest ag exporter behind
the United States
United States Department of AgricultureForeign Agricultural Service
Large Production Area
United States Department of AgricultureForeign Agricultural Service
Brazil Biomes• Amazonia - rainforest• Cerrado –
savannah/grassland• Caatinga – dry lands• Pantanal – wetlands• Mata Atlantica –
coastal forests• Pampa - grassland
United States Department of AgricultureForeign Agricultural Service
Expansion from the Coasts to the interior in the 70’s began an agricultural revolution
Agricultural Expansion 1950’s to the 1990’s
Only Recently an Agricultural Powerhouse
United States Department of AgricultureForeign Agricultural Service
Native Area66%
Pasture23%
Crop Area7%
Urban Area and Other
Uses4%
Brazilian Land in Use
United States Department of AgricultureForeign Agricultural Service
Production
United States Department of AgricultureForeign Agricultural Service
Grain Crop Expansion1975
RR
AMPA MA
PI
CERN
PB
PEAL
SEBA
TO
MT
RO
AC
GO
MG
ES
RJSP
MS
PR
SC
RS
AP
1999
RR
AMPA MA
PI
CERN
PBPEAL
SEBA
TO
MT
RO
AC
GO
MG
ES
RJSP
MS
PR
SC
RS
AP
United States Department of AgricultureForeign Agricultural Service
Brazilian Productivity Gains Outpacing Crop Area Expansion
Source: USDA PSD
020406080
100120140160180200
Production million metric tons (mmt) Area (mHA)
United States Department of AgricultureForeign Agricultural Service
$0
$5
$10
$15
$20
$25
$30
BrazilUSA
2014 Exports in Billion U.S. Dollars HS two and four digit categories (e.g., beef, poultry meat, fresh fruit, etc.)
Source: Global Trade Atlas
Brazil is now our largest agricultural competitor
United States Department of AgricultureForeign Agricultural Service
0
2
4
6
8
10
12
2005 2007 2009 2011 2013 2015
MMTs
Brazilian Meat Production
Beef Pork Poultry
Large soy and corn crops are leading to increased pork and poultry production
United States Department of AgricultureForeign Agricultural Service
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2007 2009 2011 2013 2015
Market Share of World Corn Exports
United StatesBrazilUkraineArgentinaAll Others
United States Department of AgricultureForeign Agricultural Service
Largest Soy Competitor
40
50
60
70
80
90
100
110
120
Soybean Production (mmt)
Brazil Soy U.S. Soybeans
United States Department of AgricultureForeign Agricultural Service
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005
2007
2009
2011
2013
2015
Market Share of World Soy Exports
United StatesBrazilArgentinaParaguayUruguayAll Others
United States Department of AgricultureForeign Agricultural Service
Brazil is not without Challenges
Politics
Economics
Environment
Infrastructure
United States Department of AgricultureForeign Agricultural Service
Brazil’s Economy
United States Department of AgricultureForeign Agricultural Service
The Real
United States Department of AgricultureForeign Agricultural Service
Environmental Concerns
United States Department of AgricultureForeign Agricultural Service
Infrastructure - Comparison of waterways
Source: http://lizardpoint.com/geography/usa‐rivers‐quiz.php
United States Department of AgricultureForeign Agricultural Service
U.S. - Brazil Ports Comparison
United States Department of AgricultureForeign Agricultural Service
RAILROAD DENSITY KM/1000KM2
BRAZIL 3,4 USA 29,8
U.S. – Brazil Railroad Comparison
United States Department of AgricultureForeign Agricultural Service
BR – 163 NOVA MUTUM AND LUCAS DO RIO VERDE-MT
United States Department of AgricultureForeign Agricultural Service
Looking Ahead…
United States Department of AgricultureForeign Agricultural Service
Expansion in the North
United States Department of AgricultureForeign Agricultural Service
Soybean Production and Exports Outlook
0
20
40
60
80
100
120
140
2013/14 2015/16 2017/18 2019/20 2021/22
MMT
Brazil Production Brazil export US production US exportSource: USDA
United States Department of AgricultureForeign Agricultural Service
Brazil: Competitor or PartnerSimilar challenges:- Climate Change
- Drought- Pest resistance
- Use of Biotechnology- Multi-national companies
- JBS, Cargill, Monsanto, etc.
United States Department of AgricultureForeign Agricultural Service
Increased Global Demand
Developed Countries
Developing Countries
0
200
400
600
800
1000
1200
Millions of H
ouseho
lds
Households w/real PPP incomes greater than $20,000 a year
United States Department of AgricultureForeign Agricultural Service
Climate Change Collaboration
• U.S.‐Brazil Climate Change Working Group
• The Global Open Data for Agriculture and Nutrition (GODAN) Initiative
• Brazil’s ABC Plan for Carbon Reduction
United States Department of AgricultureForeign Agricultural Service
Shared Market Objectives- Joint efforts to expand markets
in China and EU- Shared interest in science
based decisions from international fora
- Current AgMinister is eager to expand two-way trade and bi-lateral trade agreements.
United States Department of AgricultureForeign Agricultural Service
MARKET OPPORTUNITIES• The U.S. is a trend setter• Cultural exchange between
Brazil and the U.S. (1 million visas per year)
• Variety / quality of U.S. food products
• Brazilian market is underserved
• Focus on Brazilian high-end consumers
United States Department of AgricultureForeign Agricultural Service
Source: USDA/FAS/GATS. CY data.
0
5
10
15
20
25
30
Million USD
U.S. Ag Export Markets by Value 2014
United States Department of AgricultureForeign Agricultural Service
Brazil 2036- Productivity up
250% in 20 years.- Strong economic
growth.- But many problems.- What can we expect
in the future?
United States Department of AgricultureForeign Agricultural Service
Thank You
