Overview
Over the past decade, Brazil has consolidated its position as
an important agribusiness producer and major food supplier to
international markets. Brazilian agriculture has benefited
from currency devaluations, low production costs, rapid technological
advancements, and domestic and foreign investment to expand
production capacity. Brazil is a very competitive exporter of
soybeans, soymeal, sugar, poultry, beef, coffee, tobacco, frozen
concentrated orange juice, soyoil, and ethanol. Brazil, a
pioneer in biofuels production, is a world leader
in using fuel ethanol in the transport sector. Export
earnings have financed imports of wheat (for which growing conditions
are poor) and, on occasion, corn (mainly used as feed in the
expanding poultry sector). ERS economists provide analysis on
Brazil's agricultural production, trade, and policy.
Features
Brazil's
Booming Agriculture Faces Obstacles (November 2006). Brazil has emerged
as an important player in global food and agricultural markets,
but the long-term growth of Brazilian agriculture could slow
due to supply-side factors. At the same time, growth and changes
in food demand in Brazil could dampen growth in processed and
high-value agro-food exports.
Domestic Support to Brazilian Agriculture
on the Rise (May 2005). Brazil has dramatically increased its financial
support to its agricultural sector in the past few years. Lower
international grain prices, the continuing appreciation of the Brazilian
Real relative to the U.S. dollar, and higher production costs have
limited Brazil's agricultural growth in 2005.
Agriculture in Brazil and Argentina:
Developments and Prospects for Major Field Crops (January 2002). Recent increases
in international competitiveness by Argentine and Brazilian grain
and soybean producers likely foreshadow continued global trade-share
gains, particularly for soybeans and soybean products. Macroeconomic
and policy developments, particularly those related to exchange
rates, and infrastructure improvements will remain central to each
country's future prospects.
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