1. BRAZILIAN AGRIBUSINESS China Development Bank - MDIC Meeting
Overview
China Development Bank - MDIC Meeting
Brasília, January 21st, 2011 1

2. 2009 RANKING: BRAZILIAN PRODUCTION AND EXPORTS
Sources: USDA and MAPA 2

3. AGRICULTURAL PRODUCTION INDEX: 1992-2019
FAO-OCDE Projections
“Brazil is the fastest growing agricultural
sector by far, growing by over 40% to 2019,
when compared to the base period.” (OECD-FAO Agricultural Outlook )

4. AGRICULTURE AREA 2007/2008 HARVEST
Most of recent expansion in agricultural area is on pasture land
Source: Ministry of Agriculture, Brazilian Institution of Geography and Statistics (pastures – 2006)

5. MAJOR AGRICULTURAL PRODUCTS IN BRAZIL GROSS VALUE OF PRODUCTION
Source: Agriculture and Livestock National Confederation – June 2009 5

6. BRAZILIAN AGRIBUSINESS EXPORTS
MAIN PRODUCTS – 2010*
Total: US$ 73.9 billion
Source: Ministry of Development, Industry and External Commerce. 2009
Elaboration: Ministry of Agriculture
* From November 2009 to October 2010 6

7. BRAZILIAN AGRIBUSINESS EXPORTS
MAIN DESTINATIONS – 2010*
Total: US$ 73.9 billion
Source: Ministry of Development, Industry and External Commerce. 2009
Elaboration: Ministry of Agriculture
* From November 2009 to October 2010 7

8. DOMESTIC CONSUMPTION AND EXPORTS
Roughly 70% of the Brazilian agricultural production aims the national market.
Sources: Ministry of Agriculture, Brazilian Institute of Geography and Statistics
Elaboration: Ministry of Agriculture 8

9. Corn field
Harvesting soybean
GRAINS
Harvesting cotton
Soybean field 9

10. GRAINS - PRODUCTION AND AREA 1991 to 2010
Growth: 157,3% = 5,1% / year
Harvested Area
Growth: 24,9% = 1.2% / year
Source: National Company of Food Supply 10

11. MEAT Large scale, state of the art production
Biggest exporter of beef and poultry

12. MEAT PRODUCTION EVOLUTION
Broiler: + 170% (95-09)
Beef: +70 % (95-09)
Pork: + 117% (95-09)
High domestic consumption and #1 world exporter
Source: Conab
¹ The meat consumption in Brazil is close to 100 kg / inhabitant / year, with more than 43 kg of chicken meat, 37 kg of beef and 14 kg of pork. Domestic demand accounts for about 70% of chicken production, 80% of beef production and 85% of pork production.

13. SUGARCANE

14. SUGAR AND ETHANOL: PRODUCTION AND AREA
Growth : 93.2% (8.6% p.y.)
ETHANOL
Growth : 142.4% (11.7% p.y.)
Harvested Area
Growth : 44.5% (5.4% p.y.)
Estimate
Sources: Ministry of Agriculture, National Company of Food Supply 14

15. One country, many flavors
Brazilian Coffee
One country, many flavors 15

16. FRUITS:
Diversity and
Good Quality 16

17. MILK 17

18. Increasing production lead to self sufifciency
MILK
Increasing production lead to self sufifciency
Source: Milk National Forum – Brazilian Confedeeration of Agricultrue and Livestock 18

19. Forestry productivity
PLANTED ForestS
Planted forests million ha support a diversified wood industry
Biggest world exporter of hardwood pulp
Highest productivity country in the world
Largest growth potential
Forestry productivity
Hardwood
Conifers
(Million ha)
Source: ABRAF

20. FOREIGN INVESTIMENT IN AGRIBUSINESS20

21. GLOBAL TRENDS
World population growth with increasing per capita income
Continuous need of food production increase
Increasing demand for higher-quality,
better, protein-intensive food (i.e.meat)
Shortage of new areas for agricultural production
Challenges to food security

22. BRAZILIAN AGRIBUSINESS COMPETITIVE ADVANTAGES
Strong, thriving economy & Institutional framework
Leadership in tropical technology
Natural resources abundance (land, water, solar energy)
Farming vocation & Business entrepreneurship

23. STRONG, THRIVING ECONOMY INSTITUTIONAL FRAMEWORK
&
INSTITUTIONAL FRAMEWORK
Social inclusion & income distribution (upgrowth of middle class) Investment enhancement
Consolidated democracy, with stable legal and institutional framework
Infrastructure long-term investment program, with strategic actions
Sustainable growth based on macroeconomic prudential policies
Robust fiscal rules (primary surplus & rigid control of public deficit)
Low external vulnerability (with free capital flow)
Land investments in Brazil follow well established regulatory procedures permitting several forms of access to foreign investors

24. Evolution of Foreign Direct Investments in Brazil 24 24

25. FOREIGN DIRECT INVESTMENTS
By origin - average 25 25

26. STRONG, THRIVING ECONOMY & INSTITUTIONAL FRAMEWORK
No restrictions on commodity exports
BRAZILIAN TRADE BALANCE (1990 – 2010*)
AGRIBUSINESS
TOTAL
OTHERS
Source: Ministry of Development, Industry and Foreign Trade
Elaboration: Ministry of Agriculture
*Last 12 months (Nov09 – Oct 10)

27. INFRASTRUCTURE LONG-TERM INVESTMENT PROGRAM
STRONG THRIVING ECONOMY & INDUSTRIAL FRAMEWORK

28. LEADERSHIP IN TROPICAL TECHNOLOGY
Continuous & persistent public and private investments on R&D
Opened partnerships with other countries
Expressive results of productivity
Efficient use of natural resources

29. Producer Support Estimate (Public Support to Farmers)
FARMING VOCATION & BUSINESS ENTREPRENEURSHIP
Producer Support Estimate (Public Support to Farmers)
Brazil’s competitiveness doesn’t rely on subsidies.
Source: Organization for Economic Cooperation and Development

30. TECHONOLOGY and ENTREPRENEURSHIP
No tillage (environmentally friendly)
Sowing corn
(2nd harvest)
Harvesting soybean
DOUBLE CROPPING - CORN AFTER SOYBEAN
Scale, mechanization
Two crops in the same year without irrigation 30

31. FOREIGN INVESTMENT IN AGRIBUSINESS
Machinery and Equipments
Production
Food Processing
Infrastructure
Distribution
Logistics
The agribusiness productive chains offer several possibilities for foreign investors:
Direct Investment on Projects (Transportation, Storage, Harbourage)
Contract Farming (payment in products)
Capital Markets (Stocks, Investment Funds)
Partnerships and Joint Ventures

32. Maurício Fleury Curado
Ministry of Agriculture, Livestock and Food Supply
Department for Agribusiness International Promotion
Maurício Fleury Curado
Advisor for Foreign Investment
Esplanada dos Ministérios, Bloco D, 3º Andar, sala 338
Brasília - DF, BRAZIL
Phone: +55 (61) 32