Presentation on theme: "Outlook of Brazilian Agriculture"— Presentation transcript:
1 Outlook of Brazilian Agriculture XVI Joint Meeting of the BRAZIL – JAPAN Economic Cooperation CommitteeSeptember 23rd, Belo Horizonte – Minas Gerais, BrazilData sources: USDA, FAO, CIA, UN, CONAB, MAFF
2 Agrex do Brasil (former “Los Grobo Ceagro do Brasil”) Mitsubishi Corporation has acquired a Brazilian grain company.“Agrex do Brasil S/A” (former “Los Grobo Ceagro do Brasil”)WHY ???MAPITOGOBAMT
3 World Demand for Grain Will Further Increase Example: Soybeans World Import Forecast2013( 95 million tons )2023( 144 million tons )OthersOthersEU11mil (8%)EU12mil (13%)Asia72mil (76%)Asia117mil (81%)In the next decade, the world will need to import soybeans49 million tons MORE, or 52% INCREASE.Most of the incremental comes from Asia.
4 World Demand for Grain Will Further Increase World Population:Now: 7.1 billions2023: 7.9 billions(2050: 10.0 billions)Improvement of Living Standard (Change of Dietary):1kg of Egg = 3kg of grain1kg of Poultry = 4kg of grain1kg of Pork = 7kg of grain1kg of Beef = 11kg of grain
5 Who Can Supply This Demand Incremental ? Land Availability (million HA)Available Land in BrazilAvailableUsedExpansion into Northeast and North
6 Who Can Supply This Demand Incremental ? Historical Soybeans Yield (tons / ha)BrazilArgentineUSAAmong Brazil, Argentine and USA (the 3 major export countries), Brazil shows the least volatility.This proves that Brazil has the most stable / favorable conditions: Precipitation, Temperature, Solar Radiation, Soil, Crop Management, etc.
7 Brazil Will Supply This Demand Incremental Example: Soybeans World Export Forecast2013( 95 million tons )2023( 144 million tons )OthersOthersArgentine6mil (7%)Argentine18mil (12%)Brazil41mil (43%)Brazil64mil (44%)USA36mil (38%)USA44mil (30%)Sufficient Land AvailabilityFavorable Weather ConditionPlans for Logistics DevelopmentsThese Make Brazil the furtherimportant grain supplier for the world
8 Other Agricultural Products Also Rely on Brazil Coffee ExportBrazil 32%(World No.1)Orange Juice ExportBrazil 81%(World No.1)Sugar ExportBrazil 46%(World No.1)Poultry ExportBrazil 36%(World No.1)Pork ExportBeef ExportBrazil 9%(World No.4)Brazil 17%(World No.2)
9 【Ref】 Value Chain“From Farm to Consumer”: Participate in every segment of the whole chainOverview the various markets as one ⇒ Define the markets needs / situationGrain OriginationLogisticsExportImportProcessingLivestock FarmsMeet PackingConsumer Retail