Agribusiness to grow 38% over the next 10 years in Brazil

Date:09-02-2013

Deagro, Agribusiness Department at Fiesp - Federation Sao Paulo State Industries, recently release a study that projected 38% growth in Brazilian agricultural production in the next 10 years.

The study projections were based on production performance in recent years and show that the country has everything to achieve the goals set by OECD (Organization for Economic Co-operation and Development), to increase its production by 40% until 2050 to account a 20% growth in global demand for food," said the former minister. He pointed out that this is only possible because of the significant productivity gain that Brazil had as it managed to invest in technology development geared specifically for tropical climate. “We have the best tropical technology in the world”, he said.
 
According to him, the proof is that while the planted area in the last 20 years increased by 40%, the physical production increased 220%, resulting in a productivity increase of approximately 128%. “If we had the technological conditions of 20 years ago, it would take us over 68 million hectares to reach our current production. In other words, we preserve 68 million acres. That is sustainability”, he commented.
 
Despite optimistic projections, the former minister noted, however, that to achieve this level of growth in the next 10 years it will require to solve some struggles and obstacles. “We lack logistics that give conditions to compete worldwide, a trade policy based on bilateral and regional agreements; stimulus to rural insurance; besides definition of a strategy by the producers to be supported by a strong and prestigious Department of Agriculture” concludes the former minister. Without that, in his point of view, Brazil can watch the growth of other countries in an area where the country has everything to be a world leader.