1. Orlando González
Ricardo Pinto
January/2012

16. THE FIFTH LARGEST COUNTRY IN THE WORLD
3.3 X 106 square milles

17. BRAZIL COVERS 47% OF SOUTH AMERICA
FEDERATION WITH 26 STATES , 5 REGIONS
BRASILIA IS THE NATIONAL CAPITAL
POPULATION : 191 MILLION

18. 2009 RANKING: BRAZILIAN PRODUCTION AND EXPORTS
Number of Exports
Main Products Production Exports
Markets US$ Billion
Sugar 1st 1st 124 8.378
Coffee 1st 1st 81 3.762
Orange Juice 1st 1st 75 1.619
Soybeans 2nd 2nd 46 11.413
Beef 2nd 1st 142 4.118
Tobacco 2nd 1st 100 2.992
Ethanol 2nd 1st 48 1.338
Broiler 3rd 1st 146 5.307
Corn 4th 3rd 49 1.259
Pork 4th 4th 81 1.225
Sources: USDA and MAPA

19. AGRICULTURAL PRODUCTION INDEX:
1992-2019
FAO-OCDE Projections
“Brazil is the fastest growing agricultural
sector by far, growing by over 40% to 2019,
when compared to the 2007-09 base period.”
(OECD-FAO Agricultural Outlook 2010-2019)
19

20. AGRICULTURE AREA
2007/2008 HARVEST
Most of recent
expansion in agricultural
area is on pasture land
Source: Ministry of Agriculture, Brazilian Institution of Geography and Statistics (pastures – 2006)

21. BRAZILIAN AGRIBUSINESS EXPORTS
MAIN PRODUCTS – 2010*
Total: US$ 73.9 billion
* From November 2009 to October 2010
Source: Ministry of Development, Industry and External Commerce. 2009
Elaboration: Ministry of Agriculture 21

22. BRAZILIAN AGRIBUSINESS EXPORTS
MAIN DESTINATIONS – 2010*
Total: US$ 73.9 billion
* From November 2009 to October 2010
Source: Ministry of Development, Industry and External Commerce. 2009
22
Elaboration: Ministry of Agriculture

23. BRAZILIAN AGRIBUSINESS
COMPETITIVE ADVANTAGES
 Strong, thriving economy & Institutional framework
 Leadership in tropical technology
 Natural resources abundance (land, water, solar energy)
 Farming vocation & Business entrepreneurship

24. EVOLUTION OF FOREIGN DIRECT INVESTMENTS
IN BRAZIL (2001 – 2009)
45.000 43.886
40.000
35.000 33.705
30.444
US$ million
30.000
25.000
21.522 22.231
21.042 20.265
20.000 18.778
15.000 12.902
10.000
5.000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
24

25. FOREIGN DIRECT INVESTMENTS
By origin - average 2007-2009
Others Netherlands
25,4% 17,1%
USA
Canada 16,5%
3,4%
Cayman
Islands Spain
3,9% 8,7%
Germany
4,9% France
Japan Luxemburg
5,7% 5,8% 8,6%
25

27. Millions of hectares
Brazil 851.4 % Brazil % arable land
Total arable land 329.9
1. Total crop land 59.8 7.0% 18.1%
Soybean 21.6 2.5% 6.4%
Corn 14.4 1.7% 4.4%
Sugarcane 8.1 0.9% 2.5%
Sugarcane for ethanol 4.8 0.6% 1.5%
2. Pastures 158.7 18.6% 48.1%
3. Protected areas and native vegetation 495.6 58.2% -
4. Available area 137.2 16.1% -
Note: Arable land (Censo IBGE 2006) 1) Total permanent and temporary crops (Censo IBGE 2006); Data for soybean, corn and sugarcane (IBGE 2008). 2) Pastures (Censo IBGE
2006 3) Protected areas and native vegetation (Gerd Spavorek 2009, not published) APP = Permanent Preservation Area; UC = Conservation Units and TI = Indigenous lands 4)
Available area = arable land – Crop – Pastures. Source: ICONE and UNICA.

28. Source: UNICA

29. Source: UNICA and MAPA, 2009/2010 is estimated data. Production growth
is calculated by 2008/2009 over 2000/2001

30. Source: Anfavea

31. Industry revenue > US$ 50 billion (2010)
Foreign revenue (exports) US$ 13.8 billion (2010)
Direct investments > US$ 20 billion (2006-2009)
Composition 428 plants nationwide (2011)
Sugarcane growers 70,000 (2010)
People directly employed 845,000 (2009)
Share of Brazilian energy use 18.1%, ahead of hydroelectricity
Avoided CO2 emissions > 600 million tons since 1975
Source: UNICA

32. Other renewable
sources
3,8% Uranium
Coal 1,4%
Natural Gas 4,8%
8,8%
Wood and other Petroleum and
biomass derivatives
10,1% 37,9%
Sugarcane
18,1%
Hydroelectricity
15,2%
Source: BEN (2010). Elaboration: UNICA

33. FLEX-FUEL ALREADY REPRESENT ALMOST 40% OF THE
TOTAL BRAZILIAN FLEET (OTTO-CYCLE), EXPANDING
THE DEMAND
Accumulated sales
of flex-fuel vehicles
Jan, 2003 Feb, 2010
Source: ANP and ANFAVEA. Elaboration: UNICA

34. ETHANOL USE ISN’T LIMITED TO CARS…
Ethanol-powered
buses (E95) - still a
pilot project in Brazil
Flex-fuel
motorcycles
Brazilian-made crop
dusting planes running
on ethanol
Biobutanol
Production of diesel from
sugarcane at commercial
Production of bioplastics scale by 2010

36.  One of the biggest sugarcane groups in Brazil (unlisted
company).
 They have 13 units in 4 states.
 Their sugarcane crushing capacity is about 38 million tons
per year from 450,000 hectares.
 Their annual production capacity is:
◦ 2.75 million tons of sugar,
◦ 1.53 billion liters of ethanol,
◦ 1 GWh of cogeneration.
 They prefer to sell part of the company, but maintaining the
control, in order to grow more.
 Problable enterprise value: US$ 4.94 billion.

37.  Important group in São Paulo State.
 They have 2 units working and 1 greenfield to be built (with
environmental licenses).
 Their sugarcane crushing capacity is about 7.6 million tons
per year.
 Their production capacity is:
◦ 700 thousand tons of sugar,
◦ 140 million liters of ethanol,
◦ 115 MWh of cogeneration.
 They have to be sold entirely.
 Problable enterprise value: US$ 1.12 billion.

38.  Unique mill in Mato Grosso do Sul State.
 The mill had its first crushing this year (2011)
 It can crush 1,0 million tons of cane per year now.
 Their production capacity is:
◦ 90 million liters of ethanol.
 They have to be sold entirely.
 Problable enterprise value: US$ 110 million.

39.  There is one in Mato Grosso do Sul State.
 The price to buy the greenfield, including industrial area,
environmental licences and business plan, is about US$ 20
million.
 The Total CapEx for a 3 million tons per year mill will be
around US$ 475 million.
 In a greenfield, the production mix for sugar and/or ethanol
could be defined as you want.
 The first crushing season (1 million tons of sugarcane) will be
after 3 years. Then, in the second crushing period, the mill
will crush 2 million tons and, finally, in the third year, it will
crush 3 million tons of sugarcane.