jan 11, 2017
Brazil expands agricultural market by 22 products in 17 countries
Following a series of international accords, Brazilian agriculture is about to expand its reach to kitchen tables across the globe. Brazil’s Ministry of Agriculture, Fishing, and Supply (Mapa) signed the commercial negotiations in December, adding up to $8.3 billion yearly. The accords are part of Mapa’s international relations plan to increase its portion of the global agricultural market - totaling $1.08 trillion per year - from its current 6.9 percent to 10 percent in the next 5 years.
As of last November, Brazilian agricultural exports added up to $66.7 billion, 71.8 percent of which were of soy, sugar, meat, produce, and coffee, in that order of importance. This time around, Brazil will be adding to the list of agricultural exports: beef products to the U.S. and Japan, poultry to South Korea, and pork to Vietnam, among others. In addition, Mapa maintained its international trade agreements with the European Union, Mexico, India, Canada, and the European Association of Free Trade (EFTA).
In terms of intellectual property, Brazil gained the rights to “cachaça” as a geographical specialty, appreciating the value of the national product on the global market.
In 2010, Brazil surpassed Canada as the third-largest exporter of agricultural products in the world, following only the EU and the U.S., according to numbers by the Word Trade Organization (WTO). Today, Brazil earns over 20 percent more, and is projected to occupy up to 44.5 percent of the global meat market by 2020.
Between the years of 2000 to 2008, Brazil’s agricultural exports grew at an average of 18.6 percent annually, higher than Canada’s average growth of 6.3 percent, the U.S.’s 8.4 percent, and even the EU’s 11.4 percent growth. As for which exports contributed the most to growth, soy products - beans, grounds, and oil - nearly tripled in exports, growing from $4.2 billion in 2000 to $17.2 billion in 2009. Meanwhile, beef products went up from $813 million to $4.2 billion in this same period. Chicken meat increased even more, going from $735 million to $5.8 billion in exports.
As for traditional tropical products, like coffee, sugar, and orange juice, Brazil topped the list of global exporters. Brazil as been the world’s number one coffee producer since as early as 1960. A staple at the breakfast table, Brazil is also responsible for 80 percent of the world’s orange juice exports.
This high growth rate is due to Brazil’s abundant natural resources, great diversity of agricultural products, general increase in crop production, and the increase in demand from Asian countries. China alone imported 27.2 percent of Brazil’s total agricultural exports back in 2015, making it the number one importer of Brazilian agricultural goods. China’s top import from Brazil were soy beans, followed by forest produce and leather products. Asian countries as a whole imported 44.6 percent of Brazil’s agricultural exports, with the EU falling in as second largest regional importer.
Brazil remains the world’s only large territory of tropical agriculture. Because of its favorable conditions, there are some regions in Brazil where farmers can plant corn directly following the soy crop, allowing for two profitable harvests in one year.