1. Rome 30-31 May 2008 AGRIBUSINESS AND MAIN IMPACTS IN BRAZIL LUIZ CARLOS CORRÊA CARVALHO FRANCISCO MATURRO BRAZILIAN MACHINERY AND EQUIPMENT INDUSTRY ASSOCIATION ABIMAQ

2. DRIVEN FORCES FOR AGRICULTURE  Population Growth  Income and Consumption Rising  Accelerated Urbanization  Graduation – Effect Vegetal Protein Substituted by Animal Protein (meat, milk); fruits, juice, deserts, etc

3. World Population Growth in 2016: 7,2 bilhões em 2016, or, 660 million new inhabitants with higher level of consumption.

4. High Prices Are Expected………..

5. PLANTED AREA OF SELECTED CULTURES: ABSOLUT VARIATION OF 2000/2002 TO 2006/08 (million of hectares) BRAZILUSAEU - 27 Sugar cane Soybean Grains Corn (1ª crop)Corn (2ª crop) Cotton Rice Total Corn Cotton Rice Soybean Grains Wheat Total WheatBarley Corn Rapeseed Sun Flower Rye Total Source:IBGE; CONAB; USDA. Elaboration: ICONE.

6. BRAZIL: PLANTED AREA OF MAIN CULTURES Source: IBGE (2007) Soybean grain Corn Sugar cane Rice Bean

7. 1990-19992000-2005 Product Growth3,015,99 Modern Inputs0,352,03 Working Productivity 3,115,81 Capital Productivity 3,144,67 Land Productivity 2,063,26 Total Factors Productivity 2,653,87 Source: Gasques et alli, IEA, August/2007 BRAZIL - AGRICULTURE: ANNUAL GROWTH RATE (%) TOTAL FACTORS PRODUCTIVE Sources of Product Growth

8. TFP COMPARISONS – BRAZIL AND USA Source: USDA and Gasques, Bastos and Bacchi, 2007

9. Source: The Economist, 19-25/04/2008 THE AGRICULTURE’S DILLEMA PER CAPITA CONSUMPTION P.Y. IN CHINA (KG) PRICES VARIATION FROM MARCH 07 TO MARCH 08 Sources: BBC, FAO, AGRICULTURE MINISTRY OF CHINA A NEW PARADIGM FOR FOOD………