1. Brazilian Confederation of Agriculture and Livestock
Brazilian Agribusiness: Investment Policies and Opportunities
5 August, 2013
Eduardo Riedel
Vice-President of CNA

2. CNA in Brazil – an institutional overview
• The Brazilian Confederation of Agriculture and Livestock CNA was founded in 1951.
• In recent years CNA has consolidated its position as the main
forum for debate and decision making for Brazilian
agribusiness.
• The CNA System comprises twenty-seven state-level
agriculture and livestock federations and over two thousand
rural unions, through which direct support measures are
provided for farmers at the local level.
• CNA speaks on behalf of 5 million Brazilian rural producers.

3. CNA institutional mission
• Represent, organize and strengthen Brazilian farmers, defend
their rights and interests, while promoting economic, social
and environmental development in the farm sector.
CNA system
• CNA System comprises the National Rural Learning Service SENAR which provides capacity building for farmers and farm
workers, and Instituto CNA, a research institute which
conducts rural development studies and promotes social
responsibility.

4. Brazilian Rural Employers System
FARMERS
UNIONS
FEDERATIONS
SOCIETY

5. Capacity building of technicians and farmers
In 2012, the CNA and SENAR trained 553
technicians to disseminate low carbon technologies
among producers.

6. CNA presence in China
Strategies for the Chinese market
Image & positioning of
Brazilian agribusiness
Trade
Promotion and
Market Access
FDI Attraction
Trade
Intelligence
Main objectives
Promotion of Brazilian agribusiness
in China and in other regional
markets, including Taiwan, Hong
Kong and Macau
Identification of opportunities for direct
investments in infrastructure and
logistics for warehousing and
distribution of Brazilian agricultural and
livestock production

7. Opening of Beijing office - 14 November, 2012

8. CNA presence in Europe
Strategies in the European market
Image &
positioning of
Brazilian
agribusiness
Policy
advocacy, trade
intelligence and
market access
Policies and
negotiations
monitoring
Main objectives
Advocacy of interests of
Brazilian agribusiness within
European institutions
Reduction of sanitary and
phytosanitary barriers for
Brazilian products

9. Innauguration of Brussels office
19 June, 2013

10. CNA International Relations Department
(SRI)
1 . Analysis of market trends and elaboration of
differentiated strategies
2. Identification of business opportunities
1. Trade promotion
strategies
2. Actions to attract
investments in
infrastructure and
logistics
3. Expansion of the
institutional network and
alliances
Competitive
Inteligence
Trade and
investment
promotion
SRI
SRI
1. Identification of
opportunities and barriers
2. Monitoring of public
policies in the target
markets
Market
access
negotiations
3. Policy advocacy
regarding trade
negotiations

11. CNA International Strategy
Identification of market
opportunities and
barriers
• Work with trade promotion
institutions and
government agencies
Proposition of a
domestic and foreign
policy agenda
• Different strategies for
primary and processed
products
• Market intelligence strategies:
scale products and market
niches

12. Agronegócio
Brazilian Agribusiness
Brazilian GDP 2012
US$ 2.251 trillion
Agribusiness GDP 2012
US$ 412.0 billion (19.8%)
Other sectors GDP (80.2%)
US$ 1.839 trillion
Agribusiness
Agriculture
US$290.4 billion
(70.5%)
Agribusiness
Livestock
US$121.8 billion
(29.5%)
Total Exports 2012
US$ 242.6 billion
Agribusiness
US$ 95.81 billion
(39.5%)
Employment
Agribusiness
37%
Other Sectors
US$ 146.77 billion
(60.5%)
Sources: CEPEA-USP,SUT/CNA, MAPA and IPEA. US$ 1 = R$ 1,84, Brazilian Central Bank average. 2004 Employment data

13. Agribusiness Projections
99.2
Source: MAPA
*Million 60kg bags
+ 20.0%
2022/23
+20.7%
222.3
184.2
93.6
77.9
1.3
2012/13
2012/13
Maize
Cotton
2022/23
+ 30.7%
1.7
51
46
81.5
2012/13
+ 10.9%
Grains
+ 21.8%
Coffee*
Soybean
Grains and Fibers – 2012/13 to 2022/23 (million tons)
2022/23
2012/13
2022/23
2012/13
2022/23

14. Agribusiness Projections
+20.6%
+34.9%
4.3
Meats
Pork
Meats – 2012/13 to 2022/23 (million tons)
3.6
+22,5%
10.9
Source: MAPA
+44%
26.5
20.6
14.1
8.9
2012/13
2022/23
Poultry
Cattle
2012/13
35.8
2022/23
2012/13
2022/23
2012/13
2022/23

15. Agribusiness Projections
+ 22.6%
+ 17.8%
Orange
Juice
44.5
36.3
20.2
2022/23
Cellulose
2012/13
23.8
+ 28.2%
18.2
14.2
2012/13
2022/23
Paper
Sugar
Strategic Products – 2012/13 to 2022/23 (million tons)
Source: MAPA
2022/23
13.0
10.4
2012/13
2012/13
+ 24.3%
2022/23

16. Agribusiness Production and Domestic
Consumption
Exports
43.6%
Domestic
consumption
56.4%
Sources: MDIC, MAPA and IBGE

17. The importance of foreign market to Brazil
Ethanol
80.8%
Sugar
19.2%
39.3%
Coffee
60.7%
43.9%
56.1%
Cattle meat
81.5%
Poultry meat
18.5%
66.9%
Soybean
33.1%
56.6%
Corn
43.4%
84.1%
Cotton
15.9%
66.7%
0%
10%
Source: MAPA, Conab and UNICA
20%
30%
33.3%
40%
Domestic Consumption
50%
60%
70%
Exports
80%
90%
100%

18. Main Markets for Brazilian Agribusiness
2012
Russia
European Union
23.4%
3.0%
China
18.8%
United States
7.3%
Source: MAPA
Japan
3.7%

19. Brazil: World production and exports ranking
Production
Exports
World Trade
participation
(%)
Sugar
1º
1º
44%
Coffee
1º
1º
26%
Orange juice
1º
1º
81%
Soybeans
1º
1º
17%
Cattle meat
2º
1º
39%
Poultry
3º
1º
35%
Maize
3º
2º
25%
Pork meat
4º
4º
22%
Soybean oil
4º
2º
19%
Soybean meal
4º
2º
8%
Cotton
5º
2º
11%
World Ranking
Main Products
Source: USDA
Observation: 2012’s data

20. Brazilian agricultural exports
Main destinations in 2012
Products
Main destinations
Total imports volume*
(thousand tons)
Imports from
Brazil **
(thousand tons)
Imports from Brazil
participation
(%)
Coffee
United States
1,429
301
21%
Meat
Hong Kong
1,010
698
69%
Maize
Iran
3,500
2,966
85%
Soybean
China
64,550
23,689
37%
Cotton
South Africa
34
0.94
3%
Source: *USDA; **AgroStat/MAPA

21. United State:
Consumption and Imports (2012)
Products
Consumption*
(thousand tons)
Imports from Brazil** Imports from Brazil
(thousand tons)
participation
Imports*
(thousand tons)
Coffee
1,405
1,430
301.4
21%
Rice
3,810
683
7.4
1%
Cattle
11,744
1,007
18.7
2%
Poultry
13,342
51
0.37
1%
8,438
363
0.17
0%
15,938
22,965
2.8
0%
265,441
3,810
726.9
19%
47,756
680
N/A
0%
3,294
3,810
266.98
7%
Pork
Cotton
Corn
Soybeans
Sugar
Fonte: * USDA / ** AgroStat/MAPA

22. It is necessary to
increase the production
Over 280 million
ton. by 2020.
Over 450 million ton. by
2030
Source: FAO

23. Low Carbon Agriculture (ABC)
World supply
The World shall increase its production by
60% to serve a world population of 9.1
billion people by 2050
Countries
Yield Increase (%)
Australia
7
Brazil
40
Canada + United States
15
China and Russia
26
European Union
4
Source: FAO
+ 2.8 billion ton.
280 million ton.

24. Agricultural and Livestock Production Areas
in Brazil
Brazil has 851 million hectares
95.8 million hectares with cities,
infrastructure and others (11.3%)
236 million hectares with food production,
forest production and biofuels (27.7%)
93.9 million hectares with native vegetation inside
rural properties (11%)
61% of the Brazilian
territory is preserved
519.7 million hectares
329.9 million hectares (38.7% of the country)
ocupied by rural properties

25. Land Use in Brazil
Total Area: 851.5 million hectares
94 million ha (11%)
314.8 million ha (37%)
Preserved public areas
Áreas públicas preservadas
Terras Indígenas
Indigenous territories
236 million ha (28%)
Outros usos
Other uses
Agricultural produção
Áreas de production
agropecuária
Área preservada farms das
Preserved area inside dentro
propriedades rurais
Sources: IBGE, Censo Agropecuário 2006
95.8 million ha (11%)
110 million ha
Indigenous territories
(13%)

26. Deforestation (mile2)
Amazon deforastation in comparison to
the Governmental Goals
7577 mile2
Goal for deforastation reduction
Observed deforastation
1478 mile2
1797 mile2 (72% of the goal)
The goal established in the National Plan for Climate Changes is to reduce the deforastation
in 80% by 2020 in comparison to the average observed between 1996-2005
8 years before the deadline, we’ve achieved 72% of our goal.

27. Low Carbon Agriculture Program – ABC
Targets for adoption of technologies
that reduce GHG emissions in the
Brazilian agriculture
Technological Process
(in Portuguese)
70 million ha
to be available
Increase of Area/
Use - 2020
Recovery of Degraded Pastures
15 million ha
Crop-Livestock-Forest Integration
4 million ha
No-Till System
8 million ha
Biological Nitrogen Fixation
Planted Forests
Treatment of Animal Waste
Source: Decree nº 7390, of December 9th, 2010
5.5 million ha
3 million ha
4.4 million m3

28. What We Could Produce on 70 million hectares
Current Production
With + 70
million ha
Grains and fibers
160 million tons
379 million
tons
Bovine Meat
9.1 million tons
15 million tons
Note: Considering the same current levels of technology.
Sources: CNA, based on IBGE data, CONAB e SIGSIF
+ 136.88%
+ 66.67%

29. Production and Exports of Soybeans and Maize
Brazilian Production
139.3 million tons
Production
80.3 mn t
2012
= 57.6%
Domestic Consumption**
15 mn t
Exports (2012)
Santana
Zero
Exports
9.7 mn t
= 14.6%
Surplus
55.6 mn t
Itacoatiara
2.3 mn t
(3.5%)
Santarém
1.3 mn t
(2.0%)
Belém
Zero
São Luís/Itaqui
3.1 mn t (4.7%)
Porto Velho*
3.6 mn t
(5.5%)
Salvador/Ilhéus
3.0 mn t
(4.5%)
Production
59.0 mn t
= 42.4%
Domestic Consumption**
57.9 mn t
Vitória
4.9 mn t
(7.4%)
Santos
23.1 mn t (34.8%)
Paranaguá
16.6 mn t (25.0%)
São Fco do Sul
5.9 mn t (8.9%)
Rio Grande
6,2 milhões/t (9,3%)
Produção de soja e milho > 5 mil toneladas
* Porto de Porto Velho (RO) = distribui para os Portos de Itacoatiara (AM) e Santarém (PA)
** Valores estimados do consumo interno
Fonte: Produção (CONAB, Safra 2011/2012) e Exportação por Porto (SECEX, 2012)
Surplus
1.1 mn t
Surplus received
(regions N, NE e CO)
55.6 mn t
Exports
56.7 mn t
= 85.4%

30. Infrastructure Projects – Northern Arc

31. Sea Routes (distances, time and costs)
Belém (PA) – Shanghai (China)
20,235 km or 11,087 Nautical Miles
31 days trip
COST $ 760 thousand (by route)*
Santos (SP) – Rotterdam
10.056 km or
5,430 Nautical Miles
15 days trip
COST $ 377.5 thousand (by route)*
Santos (SP) – Cape of Good Hope
– Shanghai (China)
20,475 km or 11,056 Nautical Miles
31 days trip
COST $ 767.5 thousand (by route)*
Source: http://e-ships.net/dist.htm (jul, 2012) and Aprosoja / *Average cost for a day: $ 25,000.00

32. Investment Programs
Toll Roads
R$ 42 billion – estimated investment
(R$ 23.5 bi over the first 5 years)
7.5 thousand km of Toll Roads
(5 thousand km are being duplicated)
Concession term: 30 years
Winning bidder: lowest toll rate
Tolls to be charged after 10% of duplication
Leveraged IRR: 10.8% to 14.6% p.a.

33. Investment Programs
Railways
R$ 91.1 billion - estimated investment
(R$ 56 billion over the first 5 years)
10 thousand km of railways
Concession term: 30 years
Capacity will be sold through public offers
Independent Rail Operators
Open access along the whole rail network
Leveraged IRR: 13% to 14.6% p.a.

34. Opening of the Brazilian Ports to Private Capital
The innovations introduced by Law No. 12.815, of 05/16/2013, which
modernized the port sector in Brazil, created:
 The possibility to build port terminals with private capital
 Investment opportunities of R$ 57.2 billion
To make the Brazilian port operations more competitive, the Government
will also review the regulatory mark on cabotage, in 2013, with the
support of the private sector.

35. Investment Programs
Ports
Leases and Concessions
R$ 20.2 billion to be invested
(R$ 3.5 bi in concessions and R$ 16.7 bi in leases)
Term: 25 years
(one-time renewal)
Winning Bidder
Highest cargo handling with lowest fees
Private Use Terminals – TUPs
R$ 30.6 billion to be invested
Term: 25 years
(renewable continuously)
End of cargo differentiation
(own cargo and third-party cargo)
Access to ports
R$ 6.4 billion to be invested
(R$ 3.8 bi in waterways and R$ 2.6 bi in roads)
Dredge: deepening and maintenance of access
channels, turning basins and berths
Dredge contracts for 10 years (in blocs)
Access roads: 45 interventions in 18 ports

36. Review of Government Procurement Legislation
The Brazilian Senate has created a Committee to modernize law
8.666/93 that deals with bid tenders and government procurement.
This review process has Senator Kátia Abreu as rapporteur
and will mainly focus on:
•
Burocracy reduction; and
•
Increased transparency in public procurement.

37. Confederação da Agricultura e Pecuária do Brasil