1. AGRIBUSINESS EXPANSION INTO THE BRAZILIAN AMAZON Maria del Carmen Vera Diaz Daniel C. Nepstad Robert Kaufmann

2. Agribusiness is one of the main economic driving forces behind agricultural expansion in the brazilian Amazon. This process is fast and dynamic, ocurring Mato Grosso and going into Amazon region Discussions about economic, social and environmental impacts of the mechanized agriculture to the Amazon ecosystem. Soybean Boom

3. Deforestation vs soybean crops (direct or indirect impact on deforestation?) What are the real benefits of soybean production to the Amazon? Who can win or lose with the “Green Gold”

4. Restrictions to soybean expansion Transportation Infrastructure Storage Units Climatic conditions (precipitation, pests) Topography (flat areas)

5. How is soybean expansion happening? Economic logistics of this expansion: Strategy of trading companies (tradings), producers and government Who is buying land in the Amazon to grow soybeans (migration of producers) Expansion places in Amazon Region (cerrado, transition forest, primary forest) Environmental and physical restrictions to grow soybean in Amazon (soil) Questions

6. Evolution of soybean production in Brazil

7. U$2,8 billions US$ 6 billions Soybean exportation growth from 2001 to 2002 = 15.6% Soybean is the main export produt of Brazil

8. Agribusiness GDP to 2002 = R$424 billions Predicted Agribusiness GDP to 2003 = R$ 454 billions Growth = 7%

9. Increase consumption in China (economic development)

10. Good performance of international prices Devaluation of Brazilian Money (stimulate export)

11. 30% soybean national production

12. Municipal agricultural production (IBGE)

15. FIELDWORK July/2003 13 Soybean counties Tradings Producers Politics Mato Grosso

16. CARGILL BUNGE ADM AMAGGI Group 60% soybean trade in Brazil 6% of soybean trade Transnationals Brazilian trading Economic and political power together

17. Tradings: Building storage units Building ports Roads (Consortia to pavement) Credit to producers

18. Ports New storage units (north MT) Cargill in 23 places of Cuiaba-Stm road

19. 1-Substitution of pastures by crop. 2-Areas of transition forest in MT.

21. Tradings functioning as banks AMaggi: financing more 2000 producers Cargill: Credit transaction with the soybean producers 1 ton of fertilizer = 26 sacks of soybean (60 kg)

23. Cuiaba-Santarem Road

24. Madeira Santos Paranaguá Accessing world soy markets Soybean Region Asia

25. Land speculation

27. Profit Soybean vs cattle ranching Soybean profit 20-25 sacks/ha ($200-250 ha) Cattle ranching profit 4-5 sacks/ha ($40-50 ha) Cattle ranchers renting pastures to soybean producers (6 sacks soy /ha)

28. ENVIRONMENTAL AND PHYSICAL RESTRICTION Climate conditions (precipitation, temperature) Topography (flat areas) Infrastructure (roads, waterways, railroads)

30. -Flat -Plateau

31. Clay <35% Latossolo Vermelho-amarelo

32. Tradings driving the soybean expansion to the Amazon through installation of silos, financing producers, and direct participation in the execution of transport infrastructure.Tradings driving the soybean expansion to the Amazon through installation of silos, financing producers, and direct participation in the execution of transport infrastructure. Subtitution of pastures by soybean cropsSubtitution of pastures by soybean crops Soybean happening in some transition forest areasSoybean happening in some transition forest areas Economic and political power promoting the expansionEconomic and political power promoting the expansion Physical and environment limitationsPhysical and environment limitations Need higher resolution dataNeed higher resolution data Conclusions

33. End