The Economics and Organization of Brazilian Agriculture

Recent Evolution and Productivity Gains

Fabio Chaddad

• Publisher: Academic Press
• Year: 2015
• Print ISBN: 9780128016954
• eBook ISBN: 9780128018071
• Topic: Technology & Engineering
• Subtopic: Agribusiness
• Index: Technology & Engineering

The Economics and Organization of Brazilian Agriculture: Recent Evolution and Productivity Gains presents insights on Brazilian agriculture and its impressive gains in productivity and international competitiveness, also providing insightful examples for global policymakers.In Brazil, as in many countries, many economists and policymakers believe that agriculture is a traditional, low-tech sector that crowds out the development of other economic sectors and the country. This book shows that this anti-agriculture bias is ill-informed, and with population growth, rising incomes, urbanization and diet changes – especially in developing countries like China and India – on the rise, the demand for food is expected to double in the next 40 years.Brazil has the natural resources, technology and management systems in place to benefit from this expected growth in food consumption and trade. Through real-world examples, the book shows how other low-latitude countries with tropical climate and soils like Brazil – especially in sub-Saharan Africa – can benefit from the agricultural technology, production, and management systems developed in Brazil. Case studies in each of three key categories, including technology, resource management, and effective government programs provide valuable insights into effective decision-making to maximize the effect of each.- Provides important and practical insights into achievable agricultural options via case studies- Addresses the use of natural resources, technological advances, and management systems to create viable, adaptive economic growth- Applies lessons learned in Brazil to improving both economic and ecological resource-sustainable agriculture for other regions and countries

Chapter 1

Introduction

Brazilian agriculture has experienced significant growth in the last four decades. Between 1975 and 2010, total agricultural production in Brazil grew fourfold, with an annual average growth rate of 3.7%, making it a top-five producer of 36 commodities globally by 2008. During the same period, aggregate farm input use grew at a much lower rate, and total factor productivity (TFP) growth averaged between 3.0 and 3.4% per year. As a result of impressive productivity gains, Brazil was able to achieve food security, real food prices decreased, households spent a decreasing share of their income on food, and Brazil became one of the main agricultural producers and exporters in the world. This chapter describes the evolution of Brazilian agriculture since 1970, focusing on production growth, the use of farm inputs, productivity gains, and the economic effects of what is largely a success story. This chapter concludes with a sketch of the book.

Keywords

Agricultural production; agriculture; Brazil; farm input use; international competitiveness; productivity

Contents

1.1 Production 3

1.2 Farm Inputs 6

1.3 Productivity Gains 7

1.4 Economic Effects 10

1.5 Sketch of the Book 12

References 16

In 1923, Ferruccio Pinesso arrived in the port of Santos, Brazil, accompanied by his wife, Anna, his mother, and his five brothers and sisters. The Pinesso family decided to leave poverty and famine in Italy to try their luck in the New World. At that time the Brazilian economy depended heavily on coffee exports and most immigrants found work in coffee plantations in two states – São Paulo (SP) and Paraná (PR). They lived on the farm, took care of the coffee trees, and were paid a share of the crop – typically 30–40% – as remuneration for their work. Depending on the arrangement with the landlord, the family could use the land around the household to produce food for its own subsistence.

And so did the Pinesso family. The family first established itself in Marcondésia, SP, located 420 km northwest of the state capital and then moved to northern Paraná. When Ferruccio died in 1951, he left his wife and seven children a small plot of land that he had acquired in 1947. As was common among Italian immigrants, the oldest son would be responsible for taking care of the family. And so was the challenge of Eugênio Pinesso, who was 22 years old when his father passed away. He sold the small plot of land that his father had bought and with savings from a successful coffee crop and a loan from his brother-in-law was able to acquire a small farm in Peabiru, PR. Even though he had not been able to go to school as a child, Eugênio was a hard-working, entrepreneurial, and shrewd businessman. He was an early adopter of new agricultural practices and technologies, such as using coffee straw as a source of natural fertilization, coffee shading, liming to improve soil fertility, early planting of beans (to sell in the off-season), and new farm machinery.

He was also one of the first farmers to plant soybeans as a summer crop in Paraná in the late 1950s, when it was a specialty crop known as “Japanese bean.” First, Eugênio planted soybeans between coffee tree rows...

Table of contents

• Cover image
• Title page
• Table of Contents
• Copyright
• Dedication
• Preface
• Chapter 1. Introduction
• Chapter 2. Enabling Conditions
• Chapter 3. Agriculture in Southern Brazil: Cooperatives and Contract Farming
• Chapter 4. Agriculture in Southeastern Brazil: Vertically Integrated Agribusiness
• Chapter 5. Agriculture in the Cerrado: Large-Scale Farming and New-Generation Cooperatives
• Chapter 6. Conclusions
• Index