UNCTAD Secretary-General's
High-Level Multi-Stakeholder Dialogue on Commodities
in the context of UNCTAD XII
28-29 January 2008
Successful Commodity Development and
Diversification Strategies
– the Case of Brazil
By
Mr. Luis F. Vieira
Coordinator, Embrapa Labex Europe, France
The views expressed are those of the author and do not necessarily reflect the views of UNCTAD
Successful Commodity Development
and Diversification Strategies:
The Case of Brazil
Luis F. Vieira
Embrapa Labex Europe
UNCTAD Secretary-General’s
High Level Multi-Stakeholder Dialogue on Commodities
in the Context of UNCTAD XII
January 28-29, 2008
Geneva
Embrapa Labex Europe
Outline
• Industrial Development in Brazil
• Modern Agriculture Development in Brazil
• Implementation of the Green Revolution
• Integration to National, Regional and Global Supply
Chains
• Scientific Intensification & Construction of a
Environmentally and Socially Sustainable Platform
Embrapa Labex Europe
Industrial Development in Brazil
•
First Industrial Censuses:
- 1907 (1st): 3,000 companies
- 1920 (2nd): 13.000+ companies
- Consumption goods for the internal market
- Coffee exports still represented 70% of the total exports
• 1930- 1956 “Industrial Revolution”
Natl. Council of Petroleum (1938)
Natl. Steel Co. (1941)
Vale do Rio Doce (1943)
Natl. Bank for Economic
(& Social) Devlpt. (1952)
PETROBRAS (1953)
Embrapa Labex Europe
San Francisco
Hydroelectric Co. (1945)
Industrial Diversification in Brazil
• Internationalization: 1956 - …
- Increase petroleum production
- Increase supply of electricity
- Development of transportation network
– Industrial Growth 1956 – 1964
37% Capital Goods; 63% Consumption Goods
- Metal and Steel (automobile makers
- Chemical and pharmaceuticals
- Ship building
- Installation of several transnational groups
– Consolidation: from 1964 - …
- Industry expansion supported by internal market growth
- 1979: semi & industrial exports
Embrapa Labex Europe
Modern Agriculture Development in Brazil
• 1st Phase: late 60’s thru the 80’s
- Implementation of the Green Revolution
National Policy (mainly) & Economic Oriented
• 2nd. Phase: mid-80’s thru the 90’s
- Integration to National, Regional and Global
Supply Chains
Natl. & Intl. Policy (mainly), Market & Intl. Econ. Oriented
• 3rd. Phase: early 90’s thru …
- Scientific Intensification & Construction of a
Environmentally and Socially Sustainable Platform
Global Market (mainly) & Intl. Economic Oriented
Embrapa Labex Europe
Implementation of the Green Revolution
- Food & agric. raw-material shortages
- Import substitution
- Urbanization & Industrialization:
– The need for wage-goods (cheap food)
- Comparative Advantages
–
–
–
–
Land availability
Abundant natural resources (water, weather, …)
Industry potentially able to provide inputs
Some well established Ag. Research capacity
Embrapa Labex Europe
Policy and Development Strategy
- Institutional Development
(New institutions and New Governance models)
- Strengthening Public Policy Capacity
- Strengthening Public Ag. Research capacity
- Strengthening Public Ag. Extension system
- International cooperation in S&T
- Infra-structure development
(electricity, roads, storage facilities, etc..)
- Credit, price support, public stocks, etc…
Embrapa Labex Europe
New Institutions & Governance Models
-
CFP: Commission for Financing the Production
-
COBAL: Brazilian Food Corporation
-
EMBRATER: Braz. Corp. of Tech. Assistance & Rural Extension
(SIBRATER System)
-
EMBRAPA: Braz. Ag. Research Corporation (SNPA System)
-
CEPLAC: Exec. Comm. of the Cocoa Crop Plan
-
IBC: Brazilian Coffee Institute
-
IAA: Braz. Institute of Sugar & Alcohol
-
…
Embrapa Labex Europe
Strengthening Agricultural Research
Agricultural Research was a powerful tool to
boost Brazilian development through
Agriculture, with the other policy support
Commodity
Centers
1 600
1 400
1098
968
1 000
800
724
1018
1001
890
717
955
965
91
79
1120
1012
1257
1019 1020
902827
821
499
404
226
298
89
162
78
1069
561
548 509
320
74
1143
793
645
194
1135
1088
403
133 36
15
1128
1046
699
400
-
1001
882
600
200
1407
1337
1150
1 200
82
274
86
315
435
324
247
156
104
67
90
BSc
Embrapa Labex Europe
94
MSc
98
2000
PhD
58
2002
50
47 44
2004
Thematic
Centers
EcoRegional
Centers
S&T International Cooperation
Embrapa Labex Europe
CERRADO: A New Frontier
The invention of the “Tropical Agriculture”
Brazilian Savannah
(CERRADO)
• Total Area - 204 Million Hectares
• Well defined dry and rainy seasons
• Water availability
• Until the 70’s considered inapt for
Agriculture
Embrapa Labex Europe
Some Results and Impacts
• Productivity Growth
• Production Growth
• Solution for Shortages of Food &
Raw- Materials
• Import Substitution
• Auto-sufficiency
• New Agriculture Frontier
• Intense Diversification
Embrapa Labex Europe
Traits and Costs
Main Traits:
- High Performance Genetics
- Input-Intensive Prod. Systems
- PS specialization (Low Diversity)
- Focus on Productivity
The negative side:
- Environmental Impacts
- Social Inequities
- Regional imbalances
- Pressure over fragile biomes
Embrapa Labex Europe
Integration to National, Regional
and Global Supply Chains
• External Debt Pressures
• Hyper-Inflation
• Escalating petroleum prices
• Globalization pressures
• Low competitiveness
Embrapa Labex Europe
Integration to National, Regional
and Global Supply Chains
• Opening of the Brazilian Markets
• Integration of the MERCOSUL
• Reform of the Ag. Policy:
– Extinction of institutions
– Lowered barriers to imports
– Substantial reduction of support policies
• Consolidation of the Ethanol Program
• Consolidation of the Agribusiness as a Global Player
Embrapa Labex Europe
Reshaping the Strategy of Ag. Research
• Understanding the markets
• Aiming at the overall productivity of Supply Chains
• Improving and Introducing Quality and Safety
Systems
• Developing Post-Harvest Tech.
• Research to support Exports
• Changing Goals of Genetic Improvement
Programs
• Increase R&D for family-base farming and other
social groups
Embrapa Labex Europe
Some Results and Impacts
Embrapa Labex Europe
Some Results and Impacts
2006
Embrapa Labex Europe
Some Results and Impacts
Embrapa Labex Europe
Scientific Intensification & Construction of a
Environmentally and Socially Sustainable Platform
- Food and Non-Food Agriculture (BioEnergy,
Drugs, Raw-materials, Tourism …)
- Global Issues
(Global Climate Change, Sustainability,
Safety, Security, Emergent diseases, ...)
- Economic Issues
(Competitiveness, Market Access,
Economc Growth, Energy Cost, …)
- Social Issues (Wars, Stakeholders Involvement, Benefit
distribution, Jobs, Income, Integration to markets, …)
Embrapa Labex Europe
The need for a new knowledge-intensive revolution
-To address:
-The raising cost of energy and the pressure to reduce the use of
chemical inputs
- The need to increase the productivity of environmental services
and natural resources, and to protect fragile biomes
- The multi-functional role of agriculture
- The growing social and technological divide between social
groups & regions
- The need to reduce poverty
- The vulnerability of agricultural systems to Global Climate Change
- The growing demand for traceability and certified sustainable
production
Embrapa Labex Europe
The need for a new knowledge-intensive revolution
Will require in the next 10 to 20 years:
- New genetic materials, at a faster pace, and new tools for safety,
diseases and pests monitoring and combating
- The widespread application of the concepts of precision farming
- The use of multi-product system (agro-animal-forest)
- The widespread use of IT as a production, but also as a trade tool
- Integration of small farmers to the supply chains
- The continuous overall increases in production and productivity
- New policies and new institutions to deal with inequalities and
poverty
Embrapa Labex Europe
How to move forward?
- Countries, even the poor, need to invest as much as possible to build
Human Resource and infra-structure research capacity
- Investments will be necessary to provide the “side conditions” to
promote Agricultural Driven Development (policy design, to build
mgmt. and institutional capacity, etc)
- International cooperation / partnership will be more than ever
necessary to develop S&T, to provide expertise for institutional and
capacity building and to grant access to advanced research platforms
- International cooperation / partnership will be necessary to support
the “side conditions” creation
- Low-tech and top-down ready-to-use packages will not be enough to
promote sustainable development due to the complexity of the issues.
At least local R&D capacity for technology adaptation is necessary
Embrapa Labex Europe
Thank you!
vieira@agropolis.fr
Embrapa Labex Europe
Embrapa Labex Europe
Commoditty Research Centers
Plant Research
Animal Research
Cotton
Goats
Rice & Beans
Beef Cattle
Coffee
Dairy Cattle
Forestry
Southeastern Cattle
Vegetables
Southern Cattle & Goat
Cassava & Fruit
Swine & Poultry
Corn & Sorghum
Soybean
Wheat
Embrapa Labex Europe
Eco-Regional Research Centers
Amazon
Other Regions
Rondonia
Western Region
Acre
Cerrados
Roraima
Temperate Zone
Amapa
Mid-North Region
Western Amazon
Pantanal
Eastern Amazon
Tropical Semi-Arid
Coastal Table Region
Embrapa Labex Europe
Thematic Research Centers
Research Centers
Special Service Units
Agro-biology
Technology Transfer
Food Science & Technology
Publishing Agency
Tropical Agro-industrial Tech.
Intellectual Property Bureau
Environmental Management
Satellite Monitoring
Genetic Resources & Biotech
Soil Science & Survey
Bioenergy R&D
Embrapa Labex Europe