Sector mapping report on Agriculture - Low Carbon Brazil [PDF]

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Service Contract for European Union External Actions N° PI/2015/363-952 Technical Assistance to the Low Carbon Business Action in Brazil Id-N°: EuropeAid/136478/DH/SER/BR

Brazil Mapping Report Part 8 – Agriculture Sector in Brazil

01st February 2017

Technical Assistance to the Low Carbon Business Action in Brazil Service Contract for European Union External Actions EuropeAid/136478/CH/SER/BR

Mapping Report Part 8 – Agriculture Sector in Brazil 01st February 2017

Author: Susian C. Martins (short-term expert)

Ad r e s s GFA Consulting Group GmbH Eulenkrugstraße 82 D-22359 HAMBURG GERMANY Telephone Telefax E-mail

+49 (40) 603 06 – 387 +49 (40) 603 06 – 189 [email protected]

The contents of this document are the sole responsibility of the autor and should in no way be taken to reflect the views of the European Union

Mapping Report – Part 8 – Agriculture Sector in Brazil

Table of Contents Abbreviations........................................................................................................................................ IV Executive Summary ............................................................................................................................... 1 1 Brief characterization of the agricultural sector in Brazil ............................................................. 3 2 Agricultural emissions.................................................................................................................... 13 3 Emission reduction commitments ................................................................................................ 15 4 Main low-carbon agriculture technologies and mitigation potential ......................................... 18 5 Technological needs and gaps in the Brazilian sector ............................................................... 20 6 Major trends in low carbon agriculture technology: Business opportunities for EU companies in Brazil......................................................................................................................... 27 7 Entry barriers and requirements for EU companies in the Brazilian markets .......................... 28 8 Financial incentive: ABC Program ................................................................................................ 34 9 The macroeconomic and structural policies and Brazilian agricultural markets .................... 36 10 Partner organizations and initial indication of potential customers in Brazil .......................... 37 11 Potential partner organizations and initial indication of potential suppliers in the EU ........... 46 12 Findings and Conclusions ............................................................................................................. 55 13 References ....................................................................................................................................... 58 Appendix: relevant events on the sector in Brazil ............................................................................ 60 Annex A – Technology demand map - AGRICULTURE SECTOR ..................................................... 61 Annex B – Expression of Interest questions for Brazilian companies ........................................... 70 Annex C – Expression of Interest questions for EU suppliers ........................................................ 71

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Mapping Report – Part 8 – Agriculture Sector in Brazil

List of Figures Figure 1. Brazil’s agro-food trade, 1995-2013 (Source: OECD - FAO, 2015). ........................................ 4 Figure 2. Evolution of grain production and area increase in Brazil between 1990 and 2014 (Source: FGV Agro, 2015). ............................................................................................. 5 Figure 3. Brazilian meat production between 1990 and 2014 (Source: FGV Agro, 2015)....................... 5 Figure 4. Brazilian foreign trade performance between 2004 and 2015 (Source: FGV Agro, 2015. Note: 2015* – accumulated Jun/2014 – May/2015.) ............................................ 6 Figure 5. Area and total distribution of Eucalyptus and Pinus plantations in the states of Brazil in 2012 (total area 6,664,812 ha) (Source: ABRAF, 2013). ............................................. 7 Figure 6. Distribution of the number and area of farms by size in Brazil in 2006 (in %) (Source: Dieese, 2011). ................................................................................................................ 8 Figure 7. Non-degraded (120.3 million ha) and degraded pasture (48.5 million ha) areas in Brazil (Source: PPM/IBGE, 2014; LAPIG, 2014). ...................................................... 10 Figure 8. Spatial distribution of the ABC Program’s resources to finance the regeneration of pastures (low carbon technologies in Brazil) in the crop season 2012/2013 (Source: MAPA, 2015). ................................................................................................. 11 Figure 9. Spatial distribution of Agricultural Sciences teaching units in Brazil (Source: ABC Observatory, 2013). ...................................................................................................... 12 Figure 10: GHG emissions produced by the Agricultural Sector from 1970 to 2014 (Source: SEEG, 2014; SEEG 2016). .......................................................................................... 14 Figure 11. State ranking of GHG emissions generated by the Brazilian agriculture in 2014 (423 Mt of CO2e) (Source: SEEG, 2016). .......................................................................... 14 Figure 12. Spatial distribution of forage seed producers in Brazil associated with UNIPASTO (Source: ABC Observatory, 2013). ............................................................................... 24 Figure 13. Destination of the Brazilian agricultural exports, 2000-2013 (Source: OECD-FAO, 2015). ............................................................................................................................ 33

List of Tables Table 1. Mapping demand needs in Brazil. .............................................................................................. 1 Table 2. Mapping supply potential in the EU, main technologies, processes and services. ................... 2 Table 3. Distribution of the total area of rural properties in Brazil and regions in 2009 (Source: Dieese, 2011). ................................................................................................................ 8 Table 4. Distribution of the total planted area in Brazil and regions in 2014 (temporary crops) (Source: PAM/IBGE, 2014)............................................................................................. 9 Table 5. State distribution of educational institutions, research, extension, unions and cooperatives in Brazil. ................................................................................................... 12 Table 6. Mitigation actions described in Decree no. 7390 of NPCC. ..................................................... 16 Table 7. Accrued emissions (2012/13 to 2022/23) in tCO2e using the MAPA projections (Source: ABC Observatory, 2015). ............................................................................... 19 Table 8. Balance of the GHG accrued emissions (2012/13 to 2022/23) for agriculture and livestock in tCO2e with the adoption of low carbon emission technologies in degraded pasture lands (75% in pasture regeneration and 25% in ICLS/ICLFS) using the GWP metric and the MAPA’s projections (Source: ABC Observatory, 2015). ............................................................................................................................ 20 Low-carbon Business Action in Brazil (Project funded by the European Union)

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 9. Key actors of the agriculture sector consulted. ........................................................................ 20 Table 10. List of the main inoculant companies in Brazil. ...................................................................... 25 Table 11. Biodigester manufacturers in Brazil. ...................................................................................... 25 Table 12. Brazilian organizations supporting commercial networking. .................................................. 32 Table 13. Support to future rounds of negotiations provided by main Public Sector Agencies and Private entity of public utility. ........................................................................................ 34 Table 14. Support to future rounds of negotiation provided by the main Private Sector Organizations. ............................................................................................................... 34 Table 15. Potential partners in Brazil: associations, class representatives and cooperatives. .............. 39 Table 16. Potential partners in Brazil: small and medium-sized enterprises (SMEs). ........................... 41 Table 17. Potential partners in the EU. .................................................................................................. 47 Table 18. Main potential cooperation areas between Brazil and the EU in the agriculture sector. ....... 56

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Abbreviations ABC Plan

Low carbon agriculture Plan Plano Agricultura de Baixo Carbono (Plano ABC)

ABC Program

Low carbon agriculture Program Programa Agricultura de Baixo Carbono (Programa ABC)

AFS

Agro-forestry Systems

ANPII

National Association of the Producers and Importers of Inoculants Associação Nacional dos Produtores e Importadores de Inoculantes

BNDES

Brazilian Development Bank Banco Nacional de Desenvolvimento Econômico e Social

BNF

Biological Nitrogen Fixation

BRSL

Brazilian Roundtable on Sustainable Livestock Grupo de Trabalho da Pecuária Sustentável

CLFI

Crop-livestock-forest integration

CLI

Crop-livestock integration

CNA

Confederation of Agriculture and Livestock Confederação da Agricultura e Pecuária

CO2

Carbon dioxide

CO2e

Carbon dioxide equivalent

COP

Conference of the Parties

EU

European Union

FA

Forests Act Código Florestal

FAO

Food and Agriculture Organization of the United Nations

FDI

Foreign Direct Investment

FGV

Fundação Getulio Vargas

FIESP

Federation of Industries of the State of São Paulo Federação das Indústrias do Estado de São Paulo

FTAI

Fixed Time Artificial Insemination

FTET

Fixed-Timed Embryo Transfer

GDP

Gross Domestic Product

GHG

Greenhouse gases

GIS

Geographic Information System

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Mapping Report – Part 8 – Agriculture Sector in Brazil

GWP

Global Warming Potential

IBGE

Brazilian Institute of Geography and Statistics Instituto Brasileiro de Geografia e Estatística

INDC

Intended Nationally Determined Contributions

IPCC

Intergovernmental Panel on Climate Change

LCA

Low Carbon Agriculture

MAPA

Ministry of Agriculture, Livestock and Food Supply Ministério da Agricultura, Pecuária e Abastecimento

MATOPIBA

Maranhão, Tocantins, Piauí and Bahia

MM

Matchmaking Missions

MRE

Ministry of Foreign Affairs (MRE) Ministério das Relações Exteriores

MRV

Monitoring, Reporting and Verification

NOAA

National Oceanic and Atmospheric Administration

NPCC

National Policy on Climate Change

NTS

No Tillage System

OECD

Organization for Economic Co-operation and Development

Pronaf

Family Agriculture Strengthening National Program Programa Nacional de Fortalecimento da Agricultura Familiar

R&D

Core Research and Development

SEEG

System Study Greenhouse Gas Emissions Estimates Sistema de Estimativa de Emissões de Gases de Efeito Estufa

SMEs

Small and Medium-sized Enterprises

SRI

Secretariat of Agribusiness International Relations Secretaria de Relações Institucionais

UNFCCC

United Nations Framework Convention on Climate Change

UNIPASTO

Association for the Promotion of Research on the Improvement of Forage Associação para o Fomento à Pesquisa de Melhoramento de Forrageiras

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Executive Summary The present report provides a mapping of both the supply and the demand for technologies, processes and services related to the Brazilian agriculture sector and identifies barriers and potentialities of the low carbon agriculture (LCA) market. Between 1970 and 2014, the Brazilian agricultural sector has emitted 13,395 metric tons of CO2 equivalent (CO2e) corresponding to 25% of the country’s greenhouse gases (GHG) emissions during that period1. Brazil has one of the five largest total agriculture and livestock areas in the world, covering approximately 3.3 million square kilometers, corresponding to 39% of the country’s surface. Historically, agriculture has always been one of the main economic sectors in Brazil and in recent years the sector has demonstrated a good production performance when compared to other countries and previous years, increasing its commercial competitiveness. Farming systems in Brazil are highly heterogeneous in terms of size, input, modernization level, and income generation capacity, among many others characteristics. Approximately 4 of the more than 5 million farms in Brazil are operated by families and small-scale, while the bulk of commercial output is generated by 1.6 million large-scale farms and cooperatives, concentrated in the Cerrado region. In terms of total area of rural properties, the North and Central-West regions have the country’s largest share. In addition to agricultural fields, Brazil has extensive tracts of grassland, totaling 168.8 million hectares. However, 48 million hectares of pasture are degraded. Regarding agricultural emissions, to increase the Brazilian cattle herd while maintaining a low carbon production goal, it is essential to seek greater efficiency in the overall balance of GHG. Currently, the most common livestock production practice in Brazil is extensive with low rate of modern technologies, in many cases leading to inefficient systems, the degradation of pastures and late slaughter of animals. To better understand Brazil's emissions development in the agricultural sector, the main agricultural policies and plans were analyzed through the National Plan on Climate Change, the National Policy on Climate Change, the Low Carbon Agriculture Plan (ABC Plan) and, finally, the Paris Agreement and the submitted Intended Nationally Determined Contributions (INDC). The main technical needs and gaps in the Brazilian sector have also been identified in the report. Agribusinesses can often be confronted with market barriers, of which the main are language, logistic infrastructure, qualified professional, taxes, bureaucracy and delays. Needs and gaps in Brazil were mapped and more than 80 organizations were consulted to assist in the definition of the main challenges of the sector for the transition to a low carbon economy. Table 1 below is the summary the main demands and gaps in Brazil. Table 1. Mapping demand needs in Brazil.

123456-

Precision agriculture: management of the agriculture property Technical assistance: capacity building in low-carbon technologies Low-carbon consultancy and agro-environmental consultancy Monitoring of GHG emissions avoided and carbon stored in the soil: GHG emission inventories Plant nutrition: fertilizer Biological nitrogen fixation: development and production of new inoculants

1 Does not include deforestation related to agricultural activities.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

7- Animal nutrition: animal diet 8- Soil conservation: technologies for reforestation and fire detection 9- Companies, associations and farms linked to the meat supply chain: livestock farms; technologies for the recovery of pastures and the integration of crop livestock forest 10- Companies, associations and farms linked to food production (crop farms, mainly grains): technologies for the no tillage system 11- Biotechnology: artificial insemination and genetic enhancement (animal) and genetic improvement of plants 12- Agricultural productivity monitoring: satellite images, modeling and software tools 13- Planting forests (native and exotic species): innovation in vitro reproduction systems, cultivation and maintenance of native and exotic large scale species 14- Animal waste treatment: manufacturing biodigester 15- Biofuels: ethanol and biogas 16- Machinery Industry 17- Geotechnologies: remote sensing and geoprocessing for land use change mapping More than 100 organizations were identified as potential partner organizations and potential European Union (EU) suppliers. Table 2 presents a list of the main areas of this organization in the EU. Table 2. Mapping supply potential in the EU, main technologies, processes and services.

1- Precision agriculture: modeling and software tools 2- Technical assistance: monitoring tool for sustainable agriculture 3- Low-carbon consultancy and agro-environmental consultancy: Technology of GHG emission inventories and monitoring tool for sustainable agriculture 4- Monitoring of GHG emissions avoided and carbon stored in the soil: tools for monitoring GHG emissions; training and execution to collect soil samples and carbon stock determination in laboratory and development of emission and removal factors 5- Plant nutrition: monitoring tool to restore the soil damaged by monocultures and to adapt it to new crops during the off season; tools and technologies aimed at efficient management of rural property, especially for efficient use of inputs (fertilizers and pesticides) 6- Biological nitrogen fixation: development of biological nitrogen fixation in new agricultural species and development and production of new inoculants 7- Animal nutrition: development and production of cattle feed that decreases emissions caused by enteric fermentation 8- Soil conservation: reforestation techniques; technologies of production of seedlings of forest species; determination of data derived from the vegetation index (presence of straw and crop residues) related with weather data (temperature and humidity) for fire risk 9- Companies, associations and farms linked to the meat supply chain: tools and techniques of implementation and monitoring sustainable agriculture; degraded pasturelands surveillance; efficient use of inputs and machinery for the pasture recovery areas; forage seed production 10- Companies, associations and farms linked to food production (crop farms, mainly grains): tool and techniques of implementation and monitoring for sustainable agriculture and efficient use of inputs and machinery for soil conservation 11- Biotechnology: artificial insemination and genetic enhancement by transfer of FTET (Fixed-Timed Embryo Transfer) procedures and FTAI (Fixed Time Artificial Insemination) and genetic improvement of plants through the development of more productive varieties and more resistant to climatic stresses. 12- Agricultural productivity monitoring: productivity estimate of main agricultural crops, including fodder, based on agro-meteorological local, regional and national models; monitoring of the vegetative cycle based on vegetation Low-carbon Business Action in Brazil (Project funded by the European Union)

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Mapping Report – Part 8 – Agriculture Sector in Brazil

index images. 13- Planting forests: development of more effective techniques of obtaining and producing seeds and seedlings, manipulation of the land, planting, pest control, fertilization, harvesting and transport and in vitro reproduction systems 14- Animal waste treatment: technologies and equipment for treatment of animal waste, mainly swine (manufacturing bio digester) 15- Biofuels: ethanol - software systems, services and research and development for harvested areas surveillance; monitoring of emissions avoided; agricultural productivity monitoring; international market; biogas - Potential for companies offering increased biogas generation (new technologies, optimized design, better practices, etc.) 16- Machinery Industry: provide new technologies that would benefit the harvest and the soil management. Opportunity for IT professionals, agricultural engineers and agronomists 17- Geo-technologies: companies providing satellite imagery and GIS (Geographic Information System) software, monitoring tools and software for land use and remote sensing The next stage of the Low Carbon Business Action project will involve matchmaking missions (MM) between SMEs from the EU and Brazil to produce bankable business proposals. To this end, sector organizations with a potential to reach a large number of SMEs have been mapped in both Brazil and the EU.

1

Brief characterization of the agricultural sector in Brazil

Brazil is a major player in the global agricultural trade, accounting for 7.3% of global agricultural exports. The sector represents 14% of the country’s GDP (gross domestic product) and the whole agricultural chain accounts to 28%, employing almost 18 million people. The agricultural sector absorbed around 13% of Brazil’s work force in 2012 and increased almost three times its contribution to the GDP over the last decade. Brazil is considered an agricultural superpower and a market leader for many agricultural outputs. Brazil produced about 200 million tons of grains during the crop year 2015-2016, harvested from 58 million ha, particularly soybean, maize, rice, bean and wheat (Organization for Economic Cooperation and Development [OECD] - Food and Agriculture Organization of the United Nations [FAO], 2015; Conab, 2016). Other important national crops are sugar cane (330 million tons), citrus fruits (32 million tons) and coffee (30 million bags of 60 kilograms), but also cocoa, tobacco, and banana. The forestry sector, comprised of forests planted for industrial purposes, accounts for 4% of GDP. The contribution given by the sector to the country’s trade balance is very important. Exports of agriculture and agro-food industries totaled over USD 79 billion in 2013, amounting to more than 35% of total exports. These exports more than offset trade deficits in other sectors and have been rising in importance. Brazil is the world’s second largest agricultural exporter and the biggest supplier of sugar, orange juice and coffee. In 2013 it surpassed the United States as the largest supplier of soybeans and it is a major exporter of tobacco and poultry. It is as well a major producer of maize, rice and beef, the majority of which are absorbed by the large domestic market (OECD - FAO, 2015; SEEG, 2014). Furthermore, the government has projected production increases for all major commodities, outlining sustainable intensification as a key point to continued productivity-based growth in Brazil. With economic liberalization and the rapid growth of demand from emerging economies, particularly China, agro-food exports have grown rapidly (Figure 1). Brazil’s largest trading partners are the European Union, China, the United States, Japan, the Russian Federation and Saudi Arabia. Despite exporting large volumes of agricultural products, most of the production is consumed domestically. Low-carbon Business Action in Brazil (Project funded by the European Union)

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 1. Brazil’s agro-food trade, 1995-2013 (Source: OECD - FAO, 2015).

Brazil has been gaining a growing presence in the international community as a leader in SouthSouth Cooperation, promoting the exchange of agricultural and rural development experience among developing countries. In recent years, partnerships have been established between public companies, the government and regional and municipal institutions to facilitate the concerted action for sustainable development (FAO, 2016). An historical analysis of agriculture in Brazil illustrates that it is undergoing an expansion phase, both in terms of the quantity produced, as well as the cultivated area (Figure 2). In fact, technological advances are evident when a rise in yield is seen in relation to the area. Brazilian agriculture is moving from the south subtropical regions to the tropical savannah areas in the Mid-West (Cerrado), where production is mainly conducted through dryland farming (Fundação Getulio Vargas [FGV] Agro, 2015). Although the internal market absorbs the largest part of Brazilian agricultural output, agricultural growth has been driven mainly by the expansion of the production of export-oriented products, especially soybeans, sugar and poultry. The share of these products exported increased sharply in the 1990s, but the quantity exported of these products has overall stabilized in the last fifteen years. In 2013, China replaced the European Union as the single most important market for Brazil’s agriculture-based exports, reinforcing the recent trend towards new commercial partners, such as countries in East Asia and the Pacific, the Middle East, and Latin America.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 2. Evolution of grain production and area increase in Brazil between 1990 and 2014 (Source: FGV Agro, 2015).

The growth has not been exclusive of the grain sector, meat production has also increased significantly, as illustrated in Figure 3. Over the same period, beef production grew more than 100%, pork 225% and poultry 460%.

Figure 3. Brazilian meat production between 1990 and 2014 (Source: FGV Agro, 2015).

With this productive performance, the agro sector has become more competitive, advancing safely not only in terms of domestic supply but also in terms of exports. Moreover, the agribusiness trade balance has been increasingly positive until 2014 when it reached almost 80 billion dollars, vis-à-vis a national negative trade balance of 3.9 billion dollars (Figure 4).

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 4. Brazilian foreign trade performance between 2004 and 2015 (Source: FGV Agro, 2015. Note: 2015* – accumulated Jun/2014 – May/2015.)

The pulp and paper sector has also not remained unchanged, having undergone considerable expansion. The area of planted forests grew from 5 million hectares in 2005 to around 7 million hectares in 2012 (Abraf, 2013) (Figure 5). Eucalyptus trees in tropical regions of Brazil can already be harvested at 7 years of age. The progress have been made possible due to the development of “tropicalized” (locally adapted) technologies led by national public research institutions, the schools for agrarian sciences and state research agencies, with the aid of the private sector that has invested heavily in innovation in a quest to reduce demand for pesticides and fertilizers, water and fuels, decreasing the GHG emission and granting the Brazilian agribusiness an outstanding role in the global scenario for sustainable production.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 5. Area and total distribution of Eucalyptus and Pinus plantations in the states of Brazil in 2012 (total area 6,664,812 ha) (Source: ABRAF, 2013).

Agroenergy is another very promising sector, agriculture being an important contributor to the country’s energy supply. The renewable energy from agriculture is comprised by sugarcane biomass (42%), firewood (20%) and other sources (10%), accounting for almost half of the total national energy supply (MME/EPE, 2013). Ethanol produced from sugarcane generates 89% less CO2 emissions than the energy equivalent of gasoline, being an effective contributor to the reduction of global warming. Brazil is now heading towards the production of second-generation ethanol, burning cane bagasse in powerful boilers to produce ethanol and bioelectricity. The demand for food, textile fibers and energy in developing countries will continue to grow, presenting Brazil with various opportunities in the near future. The Agricultural Outlook 2015-2024, jointly produced by FAO and the OECD, revealed that to fulfill 2020’s demand food production will have to grow 20% and in order for that to happen Brazil will have to increase its production by 40%. Evidently, it has not been technology alone giving way to this impressive advance. Other public policies have been of great help, especially “Moderfrota”, a more than 10 years old governmental program that financed the exchange of the antiquated mechanized fleet in Brazilian farms. The

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Mapping Report – Part 8 – Agriculture Sector in Brazil

productivity gains generated through Moderfrota were also partially due to the reduction in waste generation accomplished with the new state-of-the-art equipment. The increase in financial resources from Ministry of Agriculture, Livestock and Food Supply (MAPA) and the decrease in interest rates for rural credit throughout these 23 years have played an important role in this change in the agricultural production in Brazil. Agricultural sector regional Farming systems in Brazil are highly heterogeneous in size, input, technology level and income, etc. Approximately 4 of the more than 5 million farms in Brazil are operated by families and are small-scale, while the bulk of commercial output is generated by 1.6 million large-scale farms and cooperatives (Haupt, 2014) (Figure 6).

Figure 6. Distribution of the number and area of farms by size in Brazil in 2006 (in %) (Source: Dieese, 2011).

In terms of total area of rural properties, the North and Mid-West regions have the country’s biggest share, due to the higher number of large farms and largest available area, respectively. However, the Mid-West and South regions account for the largest planted areas (Table 3; Table 4). Table 3. Distribution of the total area of rural properties in Brazil and regions in 2009 (Source: Dieese, 2011).

BRAZIL AND REGIONS

AREA OF PROPERTIES in 1.000 hectares

in %

North

171,601

30

Northeast

110,137

19

Southeast

80,332

14

South

51,655

9

Mid-West

158,016

28

Brazil

571,741

100

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 4. Distribution of the total planted area in Brazil and regions in 2014 (temporary crops) (Source: PAM/IBGE, 2014).

BRAZIL AND REGIONS

PLANTED AREA in hectares

in %

North

2,762,438

4

Northeast

10,207,049

14

Southeast

12,086,127

17

South

21,004,873

30

Mid-West

24,353,942

35

Brazil

70,414,429

100

In addition to agricultural areas, Brazil has large tracts of grassland, totaling 168.8 million hectares. However and is it can be observed in Figure 7, 48.5 million hectares of these pastures have a support capacity lower than 0.75 AU/ha2 and are thus considered degraded pastures. These degraded pasturelands are home to 39 million heads of cattle, about 20% of beef cattle in Brazil. The degradation of pastures, due to the poor quality of the grasses and the lack of adequate management of the production, reduces the carbon reserves in the soil and the level of productivity, resulting in higher GHG emissions in this productive livestock system. The Mid-West region, composed by the states of Mato Grosso do Sul, Mato Grosso and Goiás, hosts 34.4% of the national herd. The states of Minas Gerais, Bahia and Pará, the ones presenting the larger areas of degraded grazing land, are the geographical priority areas for the regeneration of pastures and the advance of low carbon emission agriculture.

2 Animal Unit per hectare (AU/ha): measure used to standardize the weight of the animals of a herd and that corresponds to a 450 kg animal in 1 hectare.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 7. Non-degraded (120.3 million ha) and degraded pasture 3 (48.5 million ha) areas in Brazil (Source: PPM/IBGE, 2014; LAPIG, 2014).

The progression of the pasture degradation process generates a loss of vegetable coverage and a reduction of the soil’s organic matter content, causing the CO2 emissions into the atmosphere. With the regeneration of pastures, through seeding, fertilizing and appropriate management, the process can be reverted, leading to a reduction of at least 60% in CO2 emissions generated by the production system (FGVAgro, 2015). Figure 8 below illustrates the spatial distribution of rural credit resources intended for the recovery of pastures in Brazil (funds from the ABC Program). It can be observed that much of the funding was allocated to the Central region, while other priority areas, such as the North and Northeast, have received fewer resources.

3 Degraded pasture: support capacity lower than 0.75 AU/ha

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 8. Spatial distribution of the ABC Program’s resources to finance the regeneration of pastures (low carbon technologies in Brazil) in the crop season 2012/2013 (Source: MAPA, 2015).

It appears that the process of construction of new knowledge, technologies and sustainable practices for the Brazilian agriculture requires an updated educational framework. In this sense, for the transition from traditional to sustainable agriculture, Brazil has 486 classroom undergraduate courses in Agricultural Sciences, distributed as shown in Figure 9. Additionally, there are eighteen technological courses in Agroecology. However, there is a large concentration of such course in the Southeast and South regions, home to 57% of them. The number of courses varies from 1 in the states of Sergipe and Rio Grande do Norte, to 43 in the state of Minas Gerais.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 9. Spatial distribution of Agricultural Sciences teaching units in Brazil (Source: ABC Observatory, 2013).

To achieve the implementation of the actions necessary for the adoption of low-carbon agriculture in Brazil it is essential to count with the participation of educational institutions, research and extension, but also with the support of trade unions, cooperatives and private companies. In Table 5 it can be seen quantitatively how relevant actors are distributed. Table 5. State distribution of educational institutions, research, extension, unions and cooperatives in Brazil 4.

COOPERATIVES

UNDERGRADUATE COURSES IN AGRICULTURAL SCIENCES

EMBRAPA UNITS5

7

8

2

1

2

16

13

2

AM

64

10

6

4

AP

2

9

1

2

BA

150

106

23

14

CE

71

58

13

2

DF

16

1

4

3

ES

83

53

8

5

GO

244

120

65

17

MA

19

42

21

5

MG

773

381

165

43

2

MS

73

67

29

8

2

MT

127

67

33

20

1

PA

142

79

46

9

1

PB

15

43

47

5

STATES

TECHNICAL ASSISTANCE OFFICES

RURAL UNIONS

AC

1

AL

1

1 1

4 Embrapa http://www.embrapa.br; Universities emec.mec.gov.br; Technical assistance offices http://www.asbraer.org.br/nossasassociadas; Cooperatives: http://www.mfrural.com.br/lista_rural_lista.aspx?cat=7&mnop=Cooperativas; Rural unions: CNA 5 Units of Embrapa with direct involvement with low carbon agriculture.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

COOPERATIVES

UNDERGRADUATE COURSES IN AGRICULTURAL SCIENCES

EMBRAPA UNITS5

28

0

7

1

79

18

22

6

1

PR

403

182

57

28

2

RJ

72

47

36

2

2

RN

161

22

14

1

RO

75

19

15

6

1

RR

1

8

11

5

1

RS

496

137

103

21

3

SC

289

96

37

16

1

SE

40

16

4

1

1

SP

617

236

126

34

2

TO

17

35

10

5

Total

4229

1903

917

273

STATES

TECHNICAL ASSISTANCE OFFICES

RURAL UNIONS

PE

197

PI

25

In short, Brazil’s varied climate leads to a diversified agriculture. The South and Mid-West regions of the country have higher average rainfall, better soils and more developed infrastructure. Farms in these regions use purchased inputs more intensively and are equipped with better technologies. Central Brazil contains larger areas of degraded pasture with potential for crop production. Most of Brazil’s grains, oilseeds and other export crops are produced in the South and Mid-West regions, although soybean production is increasing in the MATOPIBA (Maranhão, Tocantins, Piauí and Bahia) region. The Northeast and the Amazon basin areas lack well distributed rainfall and good soils, while infrastructure and capital markets remain less developed than in the South and Central-West regions. Livestock production is an important economic activity in the CentralWest and Amazon regions where production and exports of tropical horticultural products have also increased.

2

Agricultural emissions

The increase of GHG emissions due to anthropic action has been growing in Brazil, which negatively impacts natural ecosystems. The increase of CO2 concentration has a direct effect in plants, hindering their growth rate, crop yield and photosynthesis. The agricultural sector has increased its GHG emissions from 161 million tons of CO2e in 1970 to 423 million tons of CO2e in 2014 (MtCO2e) in GWP (Global Warming Potential) scale (SEEG, 2014; SEEG, 2016). The Brazilian Agricultural emissions have grown and represent approximately 30% of Brazil’s gross emissions in CO2e (SEEG, 2014; SEEG, 2016). Individually, enteric fermentation of cattle is the largest source of CO2e of the agricultural sector, accounting for around 56%, while nitrogen fertilization of agricultural soils is the second largest, accounting for around 36% of agricultural emissions (Figure 10).

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Figure 10: GHG emissions produced by the Agricultural Sector from 1970 to 2014 (Source: SEEG, 2014; SEEG 2016).

However, it is also important to take into consideration that there are emissions indirectly related to agricultural production and which are accounted in other sectors due to the Intergovernmental Panel on Climate Change (IPCC) methodology, such as: emissions from deforestation of natural ecosystems to agricultural expansion (Land Use Change), emissions from the use of fossil fuels in agriculture (energy) and emissions from industrial wastewater treatment (Waste). These indirect emissions are not considered in these 30%, but if they were, agriculture would be responsible for almost 60% of Brazilian emissions (SEEG, 2016). Historically, Brazilian agriculture GHG emissions were mostly generated by activities in the states in the southeast and south of the country, especially the states of Minas Gerais and Rio Grande do Sul. However, the agricultural expansion into the MId-West region started in the 1970s gradually increased its contribution to the Brazilian GHG emissions, making Mato Grosso the largest national emitter in 2014. Over the past 40 years there has been a constant reconfiguration of the regions responsible for the biggest shares of GHG emissions throughout the country, following the expansion of agricultural activity in Brazil. In recent years, the agricultural frontier has moved towards the Amazon and the northern states, rapidly increasing their share of agricultural emissions (Figure 11).

Figure 11. State ranking of GHG emissions generated by the Brazilian agriculture in 2014 (423 Mt of CO 2e) (Source: SEEG, 2016).

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Agribusiness projections presented by the Ministry of Agriculture, Livestock and Food Supply (MAPA) show that around 2024/2025 beef production is expected to be growing at a rate of around 2% per year (MAPA, 2015). The Outlook Fiesp agribusiness forecasts in 2023 cattle herd size will have increased by 11% when compared to 2014 (Fiesp, 2014). If the current levels of productivity remain stable, Brazil will be home to more than 200 million heads of cattle by 2025. Thus, if an increase in efficiency and intensification of production with low-carbon technologies in areas already occupied by livestock occurs, the trend is that the emissions from agriculture will decrease. Also, it will not be necessary to deforest new areas to increase the cattle herd, which could further aggravate the sector's already high contribution to Brazilian emissions. According to the ABC Observatory6, it is essential to seek greater efficiency in the overall balance of GHG to increase the Brazilian herd size while pursuing a goal of low carbon emissions. The livestock production currently carried out in Brazil is extensive and with a low degree of technological sophistication, which in many cases leads to inefficient systems, the degradation of pastures and the late slaughtering of animals (around 4 years). Similarly, as the pasture productivity is reduced, there is an incentive to conduct deforestation in search for soils that are more fertile and able to withstand herds and their growth. Currently, only 33% of the production capacity of Brazilian pastures is being exploited. If this rate increased to 50%, there would be an escalation in meat production as well as a release of areas with the capacity to produce food and fiber, attending 2024’s demand for agricultural products and allowing the maintenance of the current native areas (Strassburg et al., 2014).

3

Emission reduction commitments

To understand the Brazilian agricultural sector’s emissions the following main agricultural policies and plans that directly impact the development of the sector and consequently its emissions were analyzed:    

National Plan on Climate Change; National Policy on Climate Change (NPCC); Low Carbon Agriculture Plan (ABC Plan); Paris Agreement and Intended Nationally Determined Contributions (INDC).

a) National Plan on Climate Change The Brazilian National Plan on Climate Change was launched on December 01 st 2008 (the first day of COP 14 in Poznan). IN it, the country announced its climate change plans, including reduced deforestation, but excluding trading of carbon stored in its forests. The plan is still an important instrument for the national climate policy. Brazil’s main challenges to achieve the proposed GHG emission reductions, totaling a reduction between 36.1% and 38.9% of emissions estimated for 2020, are in the land use, land use change and forestry sector. The plan focuses in seven areas:       

Low carbon development; Renewable electricity; Biofuels; Deforestation; Forest cover; Vulnerability and adaption; Research and development.

6 http://www.observatorioabc.com.br

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Mapping Report – Part 8 – Agriculture Sector in Brazil

The Sectorial Plan of Mitigation and Adaptation to Climate Change for the consolidation of a Low Carbon Economy in Agriculture (ABC Plan), which defines mitigation and adaptation actions to be taken in the sector until 2020, was developed. b) National Policy on Climate Change (NPCC) By means of Through the Copenhagen Accord and further commitment assumed at the Conference of the Parties (COP 16) in Cancun, Brazil has confirmed its voluntary reduction targets for GHG emissions, between 36.1% and 38.9% of projected emissions by 2020. These targets were defined in the National Policy on Climate Change (NPCC) and approved by the Congress (Law no. 12187, dated of December 29th, 2009). The Brazilian goals proposed within the scope of the United Nations Framework Convention on Climate Change (UNFCCC) are voluntary. In addition to supporting the Brazilian stand in the global warming multilateral and international discussions, the NPCC essentially offers a legal framework for the regulation of national actions aimed at mitigation and adaptation. This framework dictates principles, guidelines and instruments to attain national targets regardless of the evolution of the global climate agreements. As outlined in the legal document (Law no. 12187), in agreement with the National Climate Change Policy, a decree by the Executive Branch should establish sectorial plans for climate change mitigation and adaptation aimed at the consolidation of a low-carbon economy. In December 2010, Decree no. 7390 was introduced to regulate Articles no. 6, 11, and 12 of Law no. 12187/2009, which establishes the NPCC and other legal provisions. This decree made it possible to clarify and define several regulatory aspects of the legal text related to the measurement of targets, formulation of the sectorial plans and the governance structure. The following table (Table 6) describes the mitigation actions related to the agricultural sector and land use change and emission reduction targets (Brazil, 2010). Table 6. Mitigation actions described in Decree no. 7390 of NPCC.

MITIGATION ACTIONS RELATED TO AGRICULTURE AND FORESTRY

GHG EMISSION REDUCTION RANGE FOR 2020 (TCO2E)

Reduce by 80% the rate of deforestation in the Amazon and 40% in the Cerrado regions

669 million

Adopt sustainable practices in agriculture

Between 133 and 166 million

Expand energy efficiency

Between 174 and 217 million

Total planned national reduction involving directly or indirectly the agricultural sector

Between 976 and 1,052 million

c) Low Carbon Agriculture Plan and Program (ABC Plan and ABC Program) Maintaining its position as one of the leaders of the world’s agro-energy sector, Brazil has developed an ABC Plan. Outlined in 2009 within the context of the 15th Conference of Parties (COP15) of the Copenhagen Climate Change Conference, the plan is in accordance with Brazil’s commitment to reduce the GHG emissions by 36% to 39% of projected emissions until 2020. Due to its size and complexity, ABC is the most ambitious plan of the last few years geared towards the mitigation of climate changes in the agriculture sector. The implementation of this Plan will allow for a reduction of 133-166 million tons of CO2e in the 2010 to 2020 period. ABC’s strategy for the reduction of emissions consists of the introduction of pasture regeneration technologies, crop-livestock integration (CLI); crop-livestock-forest integration (CLFI); Agro-forestry Systems

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(AFS); nitrogen biological fixation (NBF); no tillage systems (NTS); treatment of animal residues, and planting of forests. The food production potential through more intensive and sustainable technologies is enormous. Presently in Brazil there are over 120 million hectares of degraded areas. If through technologies such as CLFI the regeneration of these areas is achieved, it will be possible to produce approximately 360 million additional tons of grain, fibre and meat (FGV Agro, 2015). By itself, pasture regeneration has the potential of reducing emissions from 83 million to 104 million tons of CO2e by the recovery of 15 million hectares of degraded grasslands. The main goal of the ABC Plan is the transition from conventional agriculture to a production model that minimizes the GHG emissions in Brazil. To fulfill this purpose the ABC Program has been adopted, aiming at providing farmers with the conditions to incorporate low carbon technological alternatives in their productive process7. d) The Paris Agreement and the Intended Nationally Determined Contributions (INDC) Countries across the globe have adopted an historical international climate agreement at the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP 21) in Paris in December 2015. In anticipation of this milestone, many countries publicly outlined the post-2020 climate actions they intended to take under the new international agreement, known as Intended Nationally Determined Contributions (INDCs)8. The climate actions communicated in these INDCs largely determine whether the world will achieves the long-term goals of the Paris (WRI, 2016). All policies, measures and actions to implement Brazil’s INDC are under the National Policy on Climate Change (Law no. 12187/2009), the Law on the Protection of Native Forests (Law no. 12651/2012, hereinafter referred as Forest Act), the Law on the National System of Conservation Units (Law no. 9985/2000) and related legislation, instruments and planning processes. Brazil intends to adopt further measures consistent with objective of less than 2°C increase in temperature, particularly: i) Increasing the share of sustainable biofuels in the Brazilian energy mix to approximately 18% by 2030, by expanding biofuel consumption, increasing ethanol supply, including the share of advanced biofuels (second generation), and increasing the share of biodiesel in the diesel mix; ii) In terms land use change and forests: a. Strengthening and enforcing the implementation of the Forest Act (FA), at the federal, state and municipal levels; b. Strengthening policies and measures with the view to achieve zero illegal deforestation by 2030 in the Brazilian Amazonia and compensating for GHG emissions from legal suppression of vegetation by 2030; c. Restoring and reforesting 12 million hectares of forests by 2030, for multiple purposes; d. Enhancing sustainable native forest management systems, through georeferencing and tracking systems applicable to native forest management, with the goal of curbing illegal and unsustainable practices;

7 The Sectorial Plan of Mitigation and Adaptation to Climate Change in order to consolidate an Economy of Low Carbon Emissions in Agriculture (ABC Plan) integrates the commitments made by Brazil under the National Policy on Climate Change (Law no. 12187/2009 and Decree no. 7390/2010) to mitigate its emissions of GHG. The ABC Program, established by the Brazilian Central Bank Resolution no. 3896 of August 2010, is a line of credit that allows rural producers to conform to the ABC Plan guidelines. 8 Brazil ratified the Paris agreement on September 12th, 2016.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

iii) Achieving 45% of renewables in the energy mix by 2030 by: a. Expanding the use of non-fossil fuel energy sources domestically, increasing the share of renewables (other than hydropower) in the power supply to at least 23% by 2030, including by raising the share of wind, biomass and solar; b. Achieving 10% of efficiency gains in the electricity sector by 2030. iv) In the agricultural sector, strengthen the ABC Plan as the main strategy for sustainable agriculture development, including restoring an additional 15 million hectares of degraded pasturelands by 2030 and enhancing 5 million hectares of CLFI by 2030; v) In the industrial sector, promote new standards of clean technology and further enhance energy efficiency measures and low carbon infrastructure; vi) In the transportation sector, further promote efficiency measures and improve infrastructure for transport and public transportation in urban areas. These actions will allow GHG emissions of the agriculture sector in 2030 to be at the same level as 2005, while supporting a production growth of around 30% (MAPA, 2015). However, it is important to note that to achieve these production increase targets and emission reduction it will require the recovery of degraded pastures, the intensification of beef cattle production and the allocation of the expansion of agriculture in areas currently occupied by pastures.

4

Main low-carbon agriculture technologies and mitigation potential

The three major determinants of agricultural productive capacity are human capital, technology generation and dissemination, and adequacy of natural resources and weather conditions. The sustainable program of MAPA promotes agriculture systems that assure sustainability and competitiveness. The main programs’ areas are:            

ABC Plan; Agro-energy; Integrated production; Cattle integrated production; Planted crop-livestock-forest integration; Organic agriculture; Soil conservation; No-Till Farming System; Recovery of degraded area; Geographical indication; Planted forests; Monitoring and promotion of agricultural technology.

In 2010, the ABC Program was launched to finance rural projects aimed at reducing GHG emissions and the preservation of natural resources from agricultural activities. According to the MAPA, the ABC Plan consists of seven programs (six of them relating to mitigation technologies) (MAPA/ACS, 2012):       

Degraded Pastures Recovery; Crop-livestock integration (CLI), crop-livestock-forest integration (CLFI) and Agro-forestry Systems (AFS); No Tillage Systems (NTS); Biological Nitrogen Fixation (BNF); Planting of forests; Treatment of Animal Waste; Adaptation to Climate Change.

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In 2015, FGV has conducted a study aiming at estimating what would be the GHG Emissions for Brazilian agriculture in 2023, considering the projections for a rise in production carried out by MAPA in 2013, in the case low carbon emission technologies were, 1) not adopted and, 2) adopted. In the first case, emissions accrued by agriculture and livestock, considering growth projected for agricultural production and that of beef cattle in the period considered (eleven years), would be of 670 million tCO2e (Table 7). Accrued emissions originating from beef cattle would be of 647 million tCO2e and the ones originating from agricultural activity, in eleven years, would be of roughly 22 million tCO2e. Table 7. Accrued emissions (2012/13 to 2022/23) in tCO2e using the MAPA projections (Source: ABC Observatory, 2015). REGION

RICE

COTTON

BEANS

MAIZE

WHEAT

SOY

CANE

TOTAL CROPS

LIVESTOCK (ANNUAL)

LIVESTOCK (11 YEARS)

CROP + LIVESTOCK

MW

151.189

424.378

208.156

5.412.951

4.972

2.135

1.054.039

7.257.820

18.604.903

204.653.933

211.911.747

N

191.971

0

64.785

351.012

0

108

53.798

661.674

10.610.812

116.718.932

117.380.608

NE

75.558

257.117

437.444

988.061

0

287

5.482.013

7.240.480

9.623.475

105.858.225

113.098.709

S

2.175.293

0

35.490

445.522

49.130

62

164.631

2.870.128

988.136

10.869.496

13.740.028

SE

37.414

19.138

330.855

2.157.394

35.086

192

2.062.295

4.642.374

19.062.884

209.691.724

214.334.101

Total

2.631.425

700.633

1.076.730

9.354.940

89.188

2.784

8.816.776

22.672.476

58.890.210

647.792.310

670.465.193

In the second case, considering that in an eleven year time frame it would be possible to increase: i) The soil carbon stock in degraded pastures for 1.0 tC/ha/year and 1.5 tC/ha/year with the pasture recovery and integrated systems, respectively and, ii) The productivity of these pastures from 0.75 to 1.5 AU/ha in recovered pastures and to 2.5 AU/ha in CLI and in CLFI. If low carbon technologies were adopted, it would be possible to avoid the emission of 670 million tCO2e (considering the projections for growth in agriculture by MAPA) and, furthermore, store around 1.10 billion tCO2e in the soil (approximately 100.2 million tCO2e/year) with the regeneration of pastures and the implementation of the CLI and CLFI in the degraded pasture area (Table 8) (ABC Observatory, 2015).

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Table 8. Balance of the GHG accrued emissions (2012/13 to 2022/23) for agriculture and livestock in tCO 2e with the adoption of low carbon emission technologies in degraded pasture lands (75% in pasture regeneration and 25% in ICLS/ICLFS) using the GWP metric and the MAPA’s projections (Source: ABC Observatory, 2015). TOTAL PASTURE REGENERATION

TOTAL CROPS N ICLS/ICLFS AND PASTURE REGENERATION

REGION

RICE

BEANS

MAIZE

SOY

WHEAT

TOTAL ICLS/ICLFS

MW

-3.220.877

-8.445.097

-50.745.814

-105.635.418

-18.288

-156.845.225

-114.821.909

-271.667.134

N

-6.978.796

-8.417.204

-24.428.647

-16.790.366

0

-52.287.472

-44.265.372

-96.552.844

NE

-4.657.529

-95.059.041

-64.325.018

-4.968.113

0

-154.233.856

-140.616.487

-294.850.343

S

1.777.997

-361.022

-2.064.296

-1.232.398

-291.315

-1.799.814

-3.400.026

-5.199.840

SE

-2.458.069

-73.961.491

-168.084.584

-33.287.691

-832.314

-261.043.552

-173.125.864

-434.169.416

Total

-15.537.274

-186.243.855

-309.648.359

-161.913.986

-1.141.917

-626.209.919

-476.229.658

-1.102.439.577

Finally, it is important to note that in addition to the Plan and ABC Program, there are also a number of voluntary private and public-private initiatives for the sustainable intensification of agriculture, especially involving beef production, with a focus on reduced deforestation. One of such initiatives is the Brazilian Roundtable on Sustainable Livestock (BRSL), a national stakeholder partnership between producer organizations, beef processors, meatpackers, agricultural NGOs, environmental organizations, retailers and restaurant chains.

5

Technological needs and gaps in the Brazilian sector

To define the main challenges faced by the sector in the transition to a low carbon economy, not only the consultant’s experience and research were applied, but also the ones of different relevant associations, class representatives and firms who were interviewed during the mission. In the same period, the opportunity of participating in the LCBA activities was presented for potential partners ( Table 9). Table 9. Key actors of the agriculture sector consulted.

CATEGORIES

INSTITUTION Abag ABIEC

Non-profit organization private sector

ABIOVE BRSL SRB UNICA

CONTACT

AREA

Luiz Cornacchioni Juliana Monti Gabriela Tonini Bianca Nakamato Cindy Silva Moreira Bernardo Pires

Brazilian Agribusiness Association Brazilian Association of Meat Export Industries Brazilian Association of Vegetable Oil Industries Brazilian Roundtable on Sustainable Livestock

Beatriz Domeniconi Gustavo Junqueira Marcelo Vieira João Adrien Rachel Glueck Elizabeth Farina

Low-carbon Business Action in Brazil (Project funded by the European Union)

SUB AREA Agribusiness Meat Export Vegetable Oil Sustainable Livestock

Brazilian Rural Society

Agribusiness

Industry

Cane Sugar

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

CONTACT

Agroconsult

Maurício Nogueira

Agroicone

Agrotools

Private sector

Public research institution Private research institution

Arnaldo Carneiro Leila Harfuch Rodrigo C A Lima Breno Felix Camila Souza Lucas Tuffi

AREA

SUB AREA

Specialized agribusiness consultancies Specialized consultancies, projects and studies for various value chains Land management, risk monitoring and technology for agribusiness Specialized consultancies in environmental, agribusiness and reforestation

Agribusiness Consulting Agribusiness Consulting Geoprocessing Environmental Consulting

BrasilFlora

Eduardo Deangelo

Ecoplam Consultaria Ambiental S/S Ltda

Rogerio M. de Oliveira

Specialized consultancies in environmental, agribusiness and reforestation

Environmental licensing

Ecossistemas

Michael Becker

Specialized consultancies and projects in agribusiness and sustainability

Environmental Consulting

E.M. Pavão Serviços e Treinamentos Profissionais M.E.

Eduardo Pavão

Specialized agribusiness consultancies

Geoprocessing

Grupo Roncador

Caio Penido Dalla Vecchia Alexandre Estermann Julien Gomes Krolikowski

Farms cattle and grains, and limestone processing

Farms/agricultur e and cattle

Pangea Capital

Roberto Strumpf

Specialized consultancies, studies, projects and training

Environmental Consulting and training

Pisando Verde Ltda

Rodrigo Rudge

Way Carbon

Henrique de Almeida Pereira

Embrapa

Eduardo Delgado Assad

Brazilian Agricultural Research Corporation

Research

Observatório ABC

Angelo Gurgel Cecília Fagan Costa

Low Carbon agriculture advocacy

Research

Specialized consultancies in environmental projects, agriculture and climate change Specialized consultancies, studies and projects

Environmental Consulting Environmental Consulting

The main Brazilian technologies, services and processes related to low carbon agriculture are described below9. Some of these technologies need to be expanded or enhanced to meet national demand. This implies that partnerships with European companies that possess such

9 This list were elaborated was compiled and validated by EMBRAPA’s research members and sectorial key actors consulted during the project.

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knowledge are essential to Brazil. Chapter 6 offers a description of the major business opportunities for European companies in Brazil. 



 





  



 





Land use change mapping: surveillance of the expansion or reduction of agricultural crops and pastures land occupation with NOAA and MODIS sensors and better spatial resolution of national sensors (e.g. Landsat, CBERS and ASTER). This makes it possible to monitor losses and GHG gains; Growing Season Monitoring: monitoring the vegetative cycle of crops through the vegetation indexes, by generating maps of force of crops, through statistical analysis and time course graphs, based on vegetation index images. This gives the possibility to know the carbon storage potential of biomass production systems and thus follow the evolution of the low-carbon agriculture; Agricultural productivity monitoring: productivity estimation of the main agricultural crops in the country, including fodder, based on agro-meteorological local, regional and national models. This makes it possible to infer the value of tons of CO2 / ton of grain; Fire detection: using the vegetation index to detect the presence of straw and crop residues together with weather data (temperature and humidity). This can also be an important contributor to the reduction of emissions since burning areas translation in to GHG release into the atmosphere; Harvested areas surveillance: monitoring and mapping of sugarcane harvested areas from a local to a regional scale (e.g. using Landsat and CBERS). It´s possible to separate the manual from the mechanical harvesting area, providing a higher detail of the emission inventories of the sugarcane industry); Carbon Storage - R&D: study of the relationship between different crops and carbon sequestration associated with the monitoring of the temporal evolution through vegetation indices (e.g. NOAA and MODIS - regional level to national, Landsat / CBERS / other, local scale to regional) with generation of maps or data for carbon sequestration market; Increase the efficiency of agricultural inputs (fertilizers and pesticides): development and manufacture of alternatives that emit less GHG; Animal diet: development and production of herd feed that leads to lower GHG emissions due to enteric fermentation by animals, mainly cattle and pigs; Management of the agriculture property: development and adoption of tools (for example management software and precision agriculture) and technologies aimed at the efficient management of rural property, especially the efficient use of inputs (fertilizers and pesticides) and machinery, reducing GHG emissions; Monitoring of emissions avoided and carbon stored in the soil (MRV): transfer of knowledge, targeted at agricultural producers and consultants, regarding carbon monitoring in order to measure the avoided emissions or carbon stored in the production of lowcarbon system; Technical assistance: increase the number of companies specialized in low-carbon technologies for the agricultural sector in order to enable the adoption and maintenance of this technology in rural properties (knowledge transfer); Improving plants and animals genetics – R&D: development of more productive varieties, with an efficient use of inputs and more resistant to climatic stresses. Development of animals with a more efficient digestive capacity and shorter slaughter time. These actions promote lower emissions of CO2 by enteric fermentation per product unit; Environmental adequacy: provide support to the rural sector in the compliance with environmental legislation, especially law no. 12651, aimed at the recovery of environmental liabilities in areas of permanent preservation and in legal reserves. The restoration of these areas entails carbon sinking in the farms due to the carbon stored in the forest biomass of these permanent preservation areas and legal reserves; Reforestation techniques: the reforestation techniques used in Brazil are expanding to reduce financial costs and adapt to the climatic and soil conditions of each Brazilian region;

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 



 

Planted forests: support to expand the forest planted areas with species as eucalyptus and pine (exotic species), in addition to the expansion of planted forests with native species, using appropriate reforestation techniques according to each Brazilian region; GHG emission inventories: development and adoption of tools for the monitoring of GHG emissions in the rural properties (private and public), businesses and/or industrial plants. The use of these technologies allows users to improve the management of their GHG emissions, because it is possible to know the processes or activities that emit more GHG and thus mitigate them; Biological nitrogen fixation (BNF): development and adoption of new varieties of plants capable of fixing nitrogen from the air. This technology reduces the use of nitrogen fertilizers in the soil and the emissions generated from their use. Recalling that the Global Warming Potential value for 100-year time horizon of the N2O is 265 times worse than CO2 (IPCC, 2014); Waste treatment: improvement of the technologies and equipment for the treatment of swine and poultry waste, which can reduce methane emissions by waste and are able to generate power; Survey and monitoring of the degraded pasture area: develop tools or techniques to support the survey of areas of degraded pasture, the main focus of adoption of low carbon technologies for livestock farming such as pasture recovery. Degraded pasture areas have exposed soil, erosion, invasive plants and low biomass. This is important because livestock occupies 25% of Brazil´s total area. This corresponds to 220 million hectares, of which it is estimated that about 50% are in a process of degradation and 25% have low support capacity. The majority of this cattle breeding is still extensive, due to the large pasture area still existing in Brazil.

The main technical gaps and, consequently, potential markets to be explored by European companies in cooperation with Brazilian companies are: 

Forage seed production: There are companies and associations in Brazil producing forage seeds that can aid the recovery of pastures, CLFI and CLI. The UNIPASTO (Association for the Promotion of Research on the Improvement of Forage) is responsible for the high-capacity technology transfer and has several associated companies. Figure 12 illustrates the spatial distribution of the associated companies of UNIPASTO. It is clear that the forage seeds market is strongly concentrated in the Central-West and Southeast and that there is a large gap in other regions of the country, which makes it an important market to be exploited.

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Figure 12. Spatial distribution of forage seed producers in Brazil associated with UNIPASTO (Source: ABC Observatory, 2013).



Biological nitrogen fixation (BNF): The National Association of the Producers and Importers of Inoculants (ANPII) currently solely has ten members, whose distribution network follows the soybean production region (Tab. 10), illustrating the fact that about 95% of inoculants produced and imported by Brazil are intended for the soybean market. However, for cowpea there are inoculants available in the market, being necessary to extend its use among producers, especially in the Northeast; and for other crops, the use of BNF is in the process of technological development and market opening. There is the potential to adapt and/or develop new inoculants for new crops, opening new market prospects and anticipating the demands of the productive sector to sugarcane, corn, rice, wheat, sorghum, beans, groundnuts and forages which, according to data from the Brazilian Institute of Geography and Statistics (IBGE) (IBGE, 2006), represent about 50% of the total planted area in the country. Partnerships between European and Brazilian companies in this segment can support the development of new inoculants.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 10. List of the main inoculant companies in Brazil.

COMPANY NAME

LOCATION

Basf Agrícola

São Paulo – SP, Guaratinguetá – SP, Santo Antônio de Posse – SP, Ponta Grossa - PR

BiAgro BioSoja MicroQuímica Novozymes Rizobacter do Brasil Stoller do Brasil

Cambé -PR São Joaquim da Barra – SP Campinas – SP Araucária - PR Cambé - PR Cosmópolis – SP e Campinas - SP

Total Biotecnologia

Curitiba - PR

Nitro 1000

Cascavel - PR

Grap Agrocete

Ponta Grossa - PR



Waste treatment: Regarding animal waste use, Brazil does not have a developed network of manufacturers of biodigesters that can meet the needs of rural producers spread all over the country. There are only a few companies and these are concentrated in the South and Southeast regions (Table 11). It would be interesting to encourage the growth of the sector with the technological contribution coming from European companies specialized in biogas by, for example, conducting research with anaerobic treatment involving the evaluation of the use of inoculum with a microbial population adapted to the residue, improving the performance of the biodigesters.

Table 11. Biodigester manufacturers in Brazil.

COMPANY NAME

LOCATION

Vpg Consultoria & Projetos Age Tecnologias Bio Brasil Biodigestores Ecomerit ER-BR Bioenergia Ferthumus Fox Caldeiraria Industrial Oxys Probiótika Roma Geossintéticos Sab - Soluções Ambientais do Brasil Sansuy Terra Bioenergia

Blumenau / SC São José / SC Itumbi / SP Brasília / DF Londrina / PR Magé / RJ Itu / SP Curitiba / PR Belo Horizonte / MG Tatuí / SP Belo Horizonte / MG Embu / SP Campo Verde / MT



Suitable monitoring of avoided emissions and of carbon stored in the soil: Knowing the carbon stock amount is the basis of the low-carbon agriculture. It is the only way to monitor and track the progress of actions aimed at reducing emissions in the agriculture sector. For the monitoring, reporting, verification (MRV) and certification of increases in the soil carbon stock of agriculture production systems the methodology of collection and soil analysis from IPCC must be followed. Soil analysis by the IPCC method should be

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done by the dry method. It is necessary that the network of soil laboratories in Brazil possess the equipment for the determination of the quantity of carbon in the soil by thermal oxidation, or the dry method. However, most of the soils laboratories in Brazil can only count with equipment for the determination of carbon quantities in the soil through the wet method, which only determines the carbon that is in organic structures and not the carbon found in inorganic substances. European companies can provide Brazilian laboratories with equipment capable of analyzing soil carbon by the international analytical method for MRV of GHG emissions in agricultural systems; Planted forests with native species: The area of planted forests in the country is still very low (about 7 million hectares) and only 7% of commercial plantations are of native species10. Brazil has approximately 50 million hectares of degraded pastures and a part of these could be converted into forests. Apart from the lower economic activity in the European Union and the United States in past years reflected in the actions of importers of forest products) and the reduced competitiveness of Brazilian products in the production chain of forest base in the international market, the main reasons for the stagnation in the growth of the planted forest area are: (a) Lack of technological support for the commercial planting of native species: Every commercial plantation requires the use of a technological knowledge base acquired over several years that supports it in overcoming challenges and improving techniques. To access and build such a base, local labor force capacity is required, dedicated laboratories, constant updating of scientific research and routine use of genetically improved clones (pest-resistant). Such a knowledge base and resources are not yet available for native species; (b) Lack of development of more effective techniques for obtaining and producing seeds and seedlings, land manipulation, planting, pest control, fertilization, harvesting and transport; (c) Insufficient amount of seeds and seedlings due to insufficient quantity of plant nurseries to supply the demand; (d) Lack of Space Planning: need to design corridors and maximize conservation of biodiversity and ecosystem services. The Rural Environmental Register (georeferenced maps of all rural properties in Brazil and defined in Law nº 12651/2012) may provide the necessary support for this planning, however, such register is not yet finalized; (e) Lack of distribution of nurseries, pool species, potential seed collection and economic feasibility of restoration (in Brazil it is necessary to regulate the payment for environmental services for rural producers that maintain forest areas beyond the requirement of the law).

The points highlighted above stress interesting opportunities for technological cooperation with innovation regarding in vitro reproduction systems, cultivation and maintenance of native species of large scale. 



Planted forests with exotic species: The area of planted forests with exotic species in the country is still very low (6.6 million hectares). The main reasons for the stagnation in the growth of the planted forest area are the recent years’ lower level of economic activity in the European Union and the United States and the reduced competitiveness of Brazilian products in the production chain of forest base in the international market; Improving the genetic of animals: cooperation and investments into animal breeding could create new markets for Brazil, allowing the time of slaughter to be reduced to 20 to 24 months from the current 40 to 44 months (high conversion rate reaching 450 kg), increasing high temperature tolerance and resistance to endoparasites (e.g. roundworms)

10 Brazil has 72 million hectares of agricultural land; 169 million hectares of pastures; 7 million hectares of planted forests (only 7% of which with native species).

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and ectoparasites (e.g. fleas). Reducing the slaughter time considerably reduces the livestock emissions.

6

Major trends in low carbon agriculture technology: Business opportunities for EU companies in Brazil

Since the adoption of the National Plan on Climate Change in 2009, the Brazilian government has gained more visibility in the field of international climate change policy, particularly in the context of reducing deforestation. Brazil is one of the few countries with advanced policies for mitigation in the agriculture sector. It has adopted voluntary commitments, including for activities related to the sustainable intensification of beef production, such as recovery of degraded pastures (Haupt, 2014). At the climate change conference in Copenhagen in 2009, the government announced voluntary targets for emissions reduction and presented a proposal for Nationally Appropriate Mitigation Actions (NAMAs) in the agriculture sector. In addition, heavy investments in R&D, especially in the Brazilian Agricultural Research Corporation (EMBRAPA), have established a showcase for tropical agriculture, in particular by CLFI systems transforming the once infertile Cerrado in one of the most productive agricultural regions in the world. The ABC Program supports the implementation of mitigation options. Farmers investing in mitigation options while complying with certain environmental requirements have access to credit at low interest rates. So far, the main LCA technologies point to three main development trends in the future11: i. Recovery of pasturelands ii. Forest Livestock integration iii. Expansion of the biodigesters energy generation park from the management of animal waste. In addition, and based on the INDCs, there is significant room for forest planting, since the goal is to reforest at least 12 million hectares. Currently, it is possible the forest restoration of 6 million hectares in permanent preservation areas with native species (areas with native vegetation deficit that need to be reforested according to the Law 12651/2012).The two main focuses are the Cerrado and Atlantic Forest. The bottleneck in this technology (forest planting) is the production of seedlings of native species, as demand will be much higher than the existing supply in Brazil. Consequently, interesting opportunities may arise, windowing technology cooperation with innovation in vitro playback systems, cultivation and maintenance of large-scale native species. As for the recovery of pastures and livestock systems integration forest and livestock farming, there already exists sufficient knowledge in Brazil to support the advancement of these technologies. However, cooperation and investments into animal breeding could create new markets not only for Brazil, but also for other tropical areas, enabling the reduction of the time of slaughter to 20 to 24 months, a high conversion rate (reaching, about, 500 kg in 20 to 24 months), a high temperature tolerance and resistance to endoparasites (e.g. roundworms) and ectoparasites (e.g. fleas). The Brazilian herd in much of its race already presents these features. The opportunity for European companies is to transfer to other countries the FTET (fixed-timed embryo transfer) and TAI (artificial insemination to fixed time) procedures. Some examples of success are taking place with Russia. By using these technologies, the carbon footprint decreases and the meat can be certified.

11 Data provided by Researcher Eduardo Assad from EMBRAPA.

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In a relatively short time the ABC Program has already achieved considerable progress. However, the Program competes with other sources of support and investment for the agriculture and livestock sectors that do not follow any specific sustainability requirements at similar or slightly higher interest rates. Another important limitation of the ABC Program is the low loan share that can be allocated to technical assistance, making it difficult for rural producers to adopt low carbon technologies. As agribusiness grows stronger, new demands arise, as it is necessary to keep up with and even surpass the high production level. The areas that will benefit from the agribusiness' growth are listed below:     

7

Machinery Industry: Its main challenge is to provide new technologies to benefit the harvest and the soil management. It is an open door to Information Technology (IT) professionals, agricultural engineers and agronomists; Seeds Industry: It aims to improve the quality of the seeds. Its main challenge is to be able to produce more while occupying less land. It usually creates a high demand for researches; Fertilizing Industry: The challenge for this industry is to restore the soil damaged by monocultures and to adapt it to new crops during the off-season. It demands Marketing and Sales professionals; Ethanol Industry: Focused on the development of biofuel, this sector has been facing a transformation moment due to foreign investments and the merge of already existing groups; Environmental and Agribusiness Consultancy: in this transitional process into a new reality, the improvement of knowledge is essential in the quest for more appropriate solutions for mitigation of GHG emissions and adaptation of agriculture to climate change. This requires the development of research, development and innovation projects (RD&I) in the areas of mitigation and adaptation, including improvements in the Plan technologies and new methods and practices that are able to reduce emissions. This also includes mapping of priority areas, development of emission coefficients and indicators and the removal of GHG from different production systems, genetic improvements to increase efficiency and resilience, efficient use of soil and water resources, vulnerability identification and adaptation, among others.

Entry barriers and requirements for EU companies in the Brazilian markets

Agribusinesses can often be confronted with market barriers. Based on the experience of the author and on the research conducted for this project, the main barriers faced are: language, logistic infrastructure, qualified professional, taxes, bureaucracy, delays and corruption12. When doing business in Brazil, a language barrier may exist. A vast majority of the population does not speak any other language than Portuguese. However, foreigners may employ Spanish instead, and for the younger generation, the use of English is more common. One of main obstacles for the current growth of the agribusiness in Brazil relies on the poor logistical infrastructure, hindering the development of potential agricultural areas, particularly in the Northeast of the country. The existing problems are not restricted to highways; they include railways, waterways and air transportation as well. Another challenge faced by EU companies when entering the Brazilian market is the lack of qualified professionals. Highly qualified professionals have turned to the countryside and made successful careers, but they are still not enough to satisfy the increasing demand. As it often hap12 More information can be found on the web site of Brazilian Trade and Investment Promotion Agency (Apex-Brasil) (http://www.apexbrasil.com.br/home/index)

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pens in Brazil, the economic growth has not been followed by one in terms of education. Consequently, Brazil has already started to import professionals to supply the demand generated by the agribusiness. The most required professionals are:      

Managers; Agricultural engineers; Agronomists; Sales and Marketing professionals; IT professionals; Researches.

The Brazilian tax burden is also well known for its unattractiveness when compared to similar countries. As many of the countries that compete with Brazil in attracting foreign investment have lower taxes (income taxes, social contributions, taxes over industrialized products, import and export tax, among others), it is hard for the local producers to compete in the foreign market, as well as the installation of foreign companies in the country. There have been times in which Brazil has lost its own internal market due to cheaper imported products. Brazilian bureaucracy affects business and investments at all stages. The reforms of the laws and regulations for opening and running businesses in Brazil have not adapted at the rate with which the economy has grown, posing many hurdles to overseas corporations. Brazil ranked 121th out of 183 countries in the World Bank’s latest annual ease of doing business index, which encompasses variables such as easiness in opening a business, dealing with construction permits, registering property and paying taxes13. Another set of challenges regards the export and import of goods. Most imported goods are held in the customs for some time while the necessary procedures are handled and the average cost per container is rather steep. The ease of doing business index for 2016 ranks Brazil as the 149 th country in terms of trading across borders simplicity. Corruption is not uncommon in both the government and business. Despite several efforts to reduce these practices, bribes and embezzlement are still common and accepted by society at large as the price of doing business. Other barriers 



Set-up costs: The Brazilian agricultural sector can already count with a great technical ability to promote the transition to a low carbon economy. Therefore, it will likely be more favorable for European companies entering the Brazilian market to establish agreements with local partners in order to share and complement knowledge, reduce costs and make sales, than to enter this market in a more independent manner; Legal uncertainty: There are some concerns in the agricultural sector (mainly on the part farmers and agricultural companies) concerning the interpretation and application of many legal provisions that impact agricultural activities. In 2012, the Brazilian parliament passed the revised Forest Act (FA, Law no. 12651/2012), the major legal framework for conservation of natural vegetation (NV) in private land, whose implementation is currently underway. The long revision period has encompassed considerable research efforts and national discussion. On one side, debates have taken place throughout the National Parliament's plenary sections and have since then continued and various environmental and rural civil society organizations have followed and engaged in discussions about the revision and implementation of the FA. On the other, national scientific societies have issued a comprehensive statement on the suggested changes and specific follow-up studies and opinions have been published. However, the articulation of the revised FA with other public and private legal and regulatory frameworks is not yet clear (Sparovek et al., 2015). Because the FA implementation is still not concluded, it is not yet possible to assess pre-

13 More information about a key overview of Brazil in the context of the World Bank Doing Business Indicators: http://www.doingbusiness.org/data/exploreeconomies/brazil/

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cisely how much of the restoration required in the previous version will remain. Additionally, land regulation faces considerable obstacles, especially in the northern states of Brazil, mainly related with the demarcation of indigenous lands; Rising on-farm production costs: As competition for cash crops production in key agricultural regions is raising, the resulting high costs for land and labor are increasingly displacing low-profitability production systems, such as extensive cattle ranching. This in turn is driving cattle ranchers and other displaced producers to find new land. While degraded pastures with potential for reclamation are abundant, costs for their reclamation are prohibitive for many. Instead, the cheaper and water-abundant forestland is much more attractive, albeit at a higher environmental cost; Weak law enforcement: Though improving, lack of law enforcement constitutes one of the major limitations to the sector’s sustainability. Farmers and private companies often lack incentives to comply with regulations, especially environmental, labor and land tenure ones; Lack of technical assistance: According to data from IBGE (IBGE, 2006), technical support continues to be restricted to large farms – it is carried out in 22% of farms, which occupy 46% of the land. The average area of the assisted farm is 228 hectares, while of the non-assisted farms is 42 hectares. Less technical support among small-scale producers leads to low technological knowledge on the implementation of the LCA methods. In addition, it is clear that the distribution of technical support occurs on the basis of the origin and size of the assisted farms. 43% of the assisted farms receive technical guidance flowing from the government, which also tends to be targeted at smaller farms, covering an average area of 64 hectares. Farms that count with private technical guidance or guidance from producers themselves (when these are qualified professionals) have an average area of 435 hectares. Private planning companies tend to assist farms with a greater average area – 506 hectares. When analyzing the spatial distribution of the percentage of producers who reported having received technical guidance in relation to all producers, it is notable that in most of the North and Northeast this percentage did not exceed 10%, highly contrasting with many states of the Southeast and Midwest regions of Brazil, that revealed a rate of 50% or higher. This demarked lack of technical support in the North and the Northeast impacts specially small-scale producers (IBGE, 2006); Financing and interest rate equalization: Funding options for low carbon agriculture investments demand the compliance to higher requirements than the traditional agriculture ones due to the logic of LCA production systems, as well as to its emission reduction goals. For these programs to be competitive in the eyes of most agricultural producers, the offered interest rates must be more attractive than other rural lines of credit to compensate for the additional requirements they impose and consequent costs. Moreover, in some cases these requirements need to be carefully revised in order to reduce the bureaucracy involved in the whole financing process. New proposals and solutions must be sought for in regions in which land issues hinder the adoption of low carbon technologies, in order to pressure the Government to prioritize this agenda. Supporting scientific research is essential to measure the mitigation capacity of the technologies that are currently financed by the Program and of others with the potential to contribute to the growth of the LCA in Brazil. In addition, the funding should include the coverage of technical support costs, at least during the grace period. Similarly, there should be ways of rewarding producers who adopt LCA technologies regardless of the ABC Program, as a way to recognize and encourage their contribution to sustainable production and emissions reduction. In this case, the regulation of payments for environmental services could be an alternative14. In the specific case of degraded pastures recovery, this action would need to be complemented by programs that encourage the intensification of livestock, in order to facilitate the rational use of recovered pastures and thus increase meat production per hectare/year. This would generate gains not only related to efficiency in beef cattle production,

14 Rural producers who take measures to preserve areas or develop environmental preservation initiatives on their property, such as low carbon technologies, can be financially rewarded for this.

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 

 

but also in land availability for grain crops, bioenergy, afforestation and restitution of environmental liabilities. The improvement of the cost-benefit ratio for society implies the need to prioritize the allocation of funds. It is necessary to trace actions and allocate funds to the identification of regions with a high number of cattle units and large areas of degraded pastures and increase efforts for the adoption of LCA in these regions. Regarding family farming, the Family Agriculture Strengthening National Program (Pronaf) is the main line of financing for this important segment of the Brazilian agriculture and it still does include a specific line of credit for low carbon agriculture. It is necessary to establish a Pronaf LCA arm or to reorganize and join together the existing lines of the program capable of fomenting LCA practices. Finally, special attention must be given to the Northern region of Mato Grosso and to the Southeast and Southwest of Pará, where agricultural production will be greatly encouraged and expanded with the establishment of the new export corridors via ports for ocean-going navigation located in Santarém and in the banks of the Amazon River. In this specific case, providing funding options for the recovery of degraded areas, as well as for the introduction and expansion of LCA practices, will be crucial to extend the areas suitable for agriculture that will be demanded by the expected expansion of grain production and to avoid future deforestation. It will also be important to hasten land regulation programs in these regions, which has been one of the main obstacles to the access to rural credit; Poor infrastructure: the country’s lack of infrastructure in terms of access roads, highways, railways and ports, gives rise to additional transport costs, namely in terms of transport to the factory and for the marketing of products; Land acquisition restrictions: the Brazilian government imposes restrictions on the purchase of land by national groups whose capital is mainly foreign. There are many reasons that lead Brazil to adopt policies restricting the access of foreigners to land. Among the main reasons are: national security, infrastructure control, prevention of foreign speculation, control of foreign investment, regulation of immigration and guarantee of control of food production. Some examples of restrictions are: impossibility of acquiring more than 50 modules of indefinite exploration, in continuous or discontinuous area; the sum of the rural areas reserved for foreign persons cannot exceed 25% of the surface of the municipalities, and in the case of foreigners of the same nationality, that limit is reduced to 10%; Lack of tax incentives for low carbon initiatives: the deployment and development of low carbon technologies, innovation or marketing of products generated from low-carbon technologies; Lack of rural credit concession to fund production, storage and investment.

Finally, the growth of the agriculture sector is hampered by structural weaknesses in the economy, burdensome administrative procedures, low engagement in international trade and low levels of skills. Improvements in these areas have the potential to raise significantly medium-term prospects for sustained agricultural growth. In addition, Brazil’s level of global value chains integration is low, with a modest 10% of intermediate inputs originating overseas, while a relatively small share of Brazilian exports are used by other economies as inputs. One explanation for this is the country’s relatively high protection of its manufacturing sector. Entry requirements for EU companies in the Brazilian market One of the first steps that an EU company interested in entering into the Brazilian agriculture sector should take is to contact the trade and investment section of the Brazilian Embassy in its country. Such units exist to help in establishing business contacts, as well as providing all necessary information about the Brazilian Market (Table 12). In addition to contacting the Brazilian Embassy, European companies should contact organizations that support business networking. Below is presented a list of Brazilian organizations supporting commercial networking:

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Table 12. Brazilian organizations supporting commercial networking.

CATEGORIES

ORGANIZATION

WEBSITE

ACSP - Associacao Comercial de Sao Paulo (Commercial o Paulo)

www.acsp.com.br

CIESP o Paulo) Private entity: Nonprofit organization

Fecomercio SP - Federacao do Comercio de Bens, Servicos e Turismo do Estado de Sao Paulo (Tour-

SEBRAE - Serviço Brasileiro de Apoio às Micros e Pequenas Empresa (Brazilian Support Service to Micro and Small Enterprises) APEX - Agencia Brasileira de Promoçao de Exportacoes e Investimentos (Brazilian Agency for the Promotion of Exports and Investments)

Private research institution

Public sector agencies

www.fecomercio.com.br

o Paulo) FIESP - Federacao das Industrias do Estado de Sao Paulo (Federation of the State of Sao Paulo Industries)

Private entity of public utility: Non-profit organization

www.ciesp.com.br

AEB - Associacao de Comercio Exterior do Brasil (Brazilian Foreign Trade Association) CNA - Confederação da Agricultura e Pecuária (Confederation of Agriculture and Livestock) CNC - Confederacao Nacional de Comercio (National Trade Confederation) CNI - Confederacao Nacional da Industria (National Industry Confederation) SESC - Servico Social do Comercio (Commerce Social Service) FUNCEX - Fundacao Centro de Estudos do Comercio (Foundation Trade Study Center) IEL - Instituto Euvaldo Lodi (Euvaldo Lodi Institute) MAPA – Ministério da Agricultura, Pecuária e Abastecimento (Ministry of Agriculture, Livestock and Supply) MRE - Ministério das Relações Exteriores (Ministry of Foreign Affairs) SRI – Secretaria de Relações Internacionais do Agronegócio (Secretariat of Agribusiness International Relations)

www.fiesp.com.br

www.sebrae.com.br

www.apexbrasil.com.br

www.aeb.org.br www.cnabrasil.org.br www.portaldocomer-cio.org.br www.cni.org.br www.sescsp.org.br/ www.funcex.com.br www.portaldaindustria.com.br /iel/ www.agricultura.gov.br/ http://www.itamaraty.gov.br/pt -BR/ http://www.agricultura.gov.br/i nternacional

There are some public agencies in Brazil that support future rounds of negotiations in the agricultural sector with other countries, such as the MAPA (Ministry of Agriculture, Livestock and Supply), the Secretariat of Agribusiness International Relations (SRI), the Ministry of Foreign Affairs (MRE) and the Brazilian Agency for Export and Investment Promotion (Apex).

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Below is a summary of the main actions of some selected public sector agencies such as MAPA, SRI, MRE and APEX that can support future business rounds between Brazil and the EU (Box 1). Box 1. Support for future rounds of negotiations in the agricultural sector.

The MAPA is responsible for the management of public policies to encourage and develop the Agribusiness and to regulate the activities, products and services related to this sector. g b M ’ w b B z g b g w g icantly, consolidating its position as one of the largest producers and exporters of food, among more than 200 countries (Figure 13).

Figure 13. Destination of the Brazilian agricultural exports, 2000-2013 (Source: OECD-FAO, 2015). The SRI acts through the preparation of proposals for negotiations on sanitary and phytosanitary agreements and analyses deliberations on the phytosanitary requirements that involve matters of interest to the Brazilian agricultural sector. Its representatives mediate talks on bilateral and multilateral forums such as the World Trade Organization (WTO), the World Organization for Animal Health (OIE) and Codex Alimentarius. Additionally, its follows and participates in the decisions taken by the Foreign Trade Chamber and act directly in the negotiations within Mercosur. R’ p b p g b p rvices in order to stimulate their international trade, consolidating the image of Brazil as a safe and good quality food provider. For that reason, the MAPA periodically organizes fairs with companies from various sectors of agribusiness, in partnership with other government agencies such as the MRE and Apex. For those interested in tracking the performance of trade in agricultural products, every month the department consolidates the agribusiness trade balance, sharing the results of exports, imports, industry balance and the main destinations and origins of traded products. More information: http://www.agricultura.gov.br/internacional/indicadores-eestatisticas. M g g B z g b g b M y g ’ website and in AGROSTAT, that provides a detailed view of agricultural and agribusiness exports and imports since January/1997. More information: http://indicadores.agricultura.gov.br/agrostat/index.htm Additional trade data is also available via ITC´s Trade Map Tool which is available free of cost and also easy to use (it also allows for further analysis of trade data incl. analysis of trade data on a country to country basis as well as country to economic block for example). More information: http://www.trademap.org/Index.aspx FAO Stat is another trade database that might be relevant in this context (http://www.fao.org/faostat/en/#home)

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Below are the types of support to future rounds of negotiations provided by the main (public and /or private) agencies (Table 13 and Table 14). Table 13. Support to future rounds of negotiations provided by main Public Sector Agencies and Private entity of public utility.

AGENCIES/ TYPE OF SUPPORT

TRADE DATA/ STATISTICS

TRADE FAIR PARTICIPATION

TRADE MISSIONS

X X

X

APEX CNA

OTHER Capacitation

CNI

X

X

MAPA

X

X

X

X X

X

SRI MRE SESC

INVESTMENT INCENTIVES

Capacitation Capacitation and development

X

Capacitation

Table 14. Support to future rounds of negotiation provided by the main Private Sector Organizations.

AGENCIES/ TYPE OF SUPPORT

TRADE DATA/ STATISTICS

TRADE FAIR PARTICIPATION

Fecomercio

X

X

FIESP

X

X

X

X

X

SEBRAE

8

TRADE MISSIONS

INVESTMENT INCENTIVES

OTHER Capacitation, legal advice and development Capacitation, legal advice and development

X

Capacitation and development

Financial incentive: ABC Program

The transition of conventional agriculture to a production model that minimizes the GHG emissions in Brazil depends on financial incentives. The only line of credit for the financing of low carbon agriculture in Brazil, according to the goals proposed at the Paris Conference and with potential for large-scale adoption by rural producers, is the ABC Program. Its purpose is to provide conditions for farmers to make the necessary investments to incorporate low carbon technology alternatives into the production process. The ABC Program, established by the BACEN – Banco Central (Central Bank) Resolution nº 3,896 of August 17, 2010, is a line of credit that allows rural producers to conform to the ABC Plan guidelines. The Sectorial Plan of Mitigation and Adaptation to Climate Change in order to consolidate an Economy of Low Carbon Emissions in Agriculture (ABC Plan) integrates the commitments made by Brazil under the National Policy on Climate Change (Law No. 12,187/2009 and Decree No. 7,390/2010) to mitigate its emissions of greenhouse gases (GHG). For the 2010/11 crop year, BRL 2 billion were provided for investments in techniques that increase efficiency in crops, with a positive balance between sequestration and carbon emissions. Additionally, there was the guarantee of financing to farmers and cooperatives, with a financing limit of BRL 1 million per beneficiary. The credit would be financed with an interest rate of 5.5% pa and a term of twelve years repayment. For the 2011/12 crop year, BRL 3.15 billion were allocated to the ABC Program with financings from Banco do Brasil and BNDES. This showed the willingness of the Federal Government to evidence the line of credit and to place the program at the centre of the national agricultural production strategy. This motivation advanced to the follow-

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ing crops. The 2012/13 crop year had an increase of BRL 3.4 billion and the 2013/14 and 2014/15 crop years had an increase of BRL 4.5 billion. The credit for these crop years was financed at a 5.0% interest rate per year to farmers with annual gross income of over BRL1.6 million, and at 4.5% per year to farmers with annual gross income of up to BRL1.6 million, with a repayment term of up to 15 years. This reflects the Government's effort to stimulate demand which does not yet reach the entire allocated financial resources amount. In the 2015/16 crop, Brazil's economic situation was reflected in the results of the ABC Program. In this crop year the value decreased to BRL 3 billion with interest rates ranging from 7.5% to 8.0%. The resources from the ABC Program are concentrated in the states of the Southeast and Midwest areas in Brazil. With fewer contracts, but with higher average value per contract, the Midwest became, in the 2013/14 crop year, the region with the largest destination of funds from the ABC Program: BRL 1.1 billion, compared to BRL1.03 billion in the Southeast). The North and Northeast regions are seen as a priority for the credit line - due to their vast rural savings expanse of degraded pastures and low efficiency agriculture. However, they remain with the least amount of contracts and funds received from the ABC Program. The financings of the ABC Program have more requirements than traditional credit due to the logic of its production systems, as well as to its goals of reducing emissions. For the ABC Program to be competitive, its interest rate must be more attractive than other rural lines of credit to compensate for the additional requirements. The requirements for financing also need to be carefully revised in order to reduce bureaucracy in the financing process. New proposals and solutions must be sought for in regions where land issues hinder the adoption of low carbon technologies, so that the Government properly prioritizes this agenda. It is also necessary to ensure that the ABC Program only fosters technologies that reduce emissions of greenhouse gases. Activities that have not been scientifically proven to be capable of reducing emissions must not be part of the Program. In order to do so, the support of scientific research is essential to measure mitigation capacities of the technologies that are currently financed by the Program and of others with potential to contribute to the ABC Plan's goals. In addition, the financing should include coverage of technical support costs, at least during the grace period. Similarly, there should be ways to reward producers who adopt such technologies regardless of the ABC Program, as a way to recognize and encourage their contribution to sustainable production and to reducing emissions. In this case, the regulation of payment for environmental services could be an alternative. In the specific case of the recovery of degraded pastures, the main sub-activity financed by the Program, it is necessary for this action to be complemented by programs that encourage the intensification of livestock in order to facilitate rational use of recovered pastures and, thereby, increase meat production per hectare/year. Besides gains in beef cattle, there will also be land available for grain crops, bioenergy, afforestation and restitution of environmental liabilities. The improvement of the cost-benefit ratio for society implies the need to prioritize the allocation of funds. It is necessary to trace actions and allocate funds to identify regions with high number of cattle and large areas of degraded pastures e, thus, increase efforts for the adoption of the ABC in these regions. Regarding family farming, Pronaf, the main line of financing of this important segment of Brazilian agriculture, still does not have a specific line of credit for low carbon agriculture. Therefore, it is necessary to establish the Pronaf-ABC or reorganize and join the existing lines of the program capable of fomenting ABC practices. Lastly, special attention must be given to the North region of Mato Grosso and to the Southeast and Southwest of Pará, where agricultural production will be greatly encouraged and expanded with the establishment of the new export corridors via ports for ocean-going navigation located in Santarém and at the mouth of the Amazon River. In this case, financing for the recovery of degraded areas, as well as for ABC practices, will be an essential tool to extend areas suitable for Low-carbon Business Action in Brazil (Project funded by the European Union)

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agriculture that will be demanded by the expected expansion of grain production in those regions and to avoid future deforestation. It will also be important to hasten land regulation programs in these regions, which has been of the main obstacles in the access to rural credit. More information about the ABC http://www.agricultura.gov.br/pap.

9

Program

can

be

found

in

MAPA’s

website:

The macroeconomic and structural policies and Brazilian agricultural markets

In terms of overall macroeconomic context, Brazil has achieved a more improved stability since the mid-1990s. However, the interest rates remain high (reflecting the so-called “Brazilian cost”), with funding at market interest rates accounting for more than 30% of crop costs for those farmers forced to borrow at commercial rates. By international standards, Brazil’s import tariffs are high, of around 10%. This naturally raises the cost of imports, including inputs used in agriculture. As a result, Brazil’s participation in global value chains is low, while the import content of all the Brazilian exports is estimated to reach only 10%, and 7% for exports of primary agricultural commodities and food products. In addition to protection at the border, Brazil uses local content provisions in publicly financed projects. These requirements are also imposed by the Brazilian Development Bank (BNDES) on loans for capital goods, including by the agro-food and agro-processing sectors. Imported capital goods are not financed under the National Rural Credit System, except if there is no similar product being manufactured domestically, and even those products are subject to a minimum of 60% of local content provision. On the other hand, Brazil has a relatively open Foreign Direct Investment (FDI) regime and in mid-2012 it was the world’s sixth largest recipient of FDI. The agro-processing sector faces few restrictions and foreign investment has for example contributed to the development of fertilizer production in Brazil and has been instrumental in driving the technological development of the sugar and ethanol sectors. However, FDI is restricted in several sectors, including the acquisition of rural land by foreign legal or physical persons, which reflects the concerns of potential “land grabbing” that followed the global food price hikes of 2007 and 2008. The financial market in Brazil is largely bank based. Free market borrowing costs are high, for a variety of reasons, including a high Central Bank refinancing rate, high compulsory bank reserves by international standards and a high level of taxation of the banking sector. This increases the cost of capital and creates a bias towards short-term high-risk investment, in detriment of longterm investment. Over the last two decades, Brazil’s tax and contribution systems have increased public revenues from 24% to 34% of GDP, a share which is comparable to that of many developed economies, but that is relatively high when compared to most Latin American and other BRICS’ (e.g. 17% in China, 18% in India, 12% in Indonesia and 27% in South Africa). Brazil’s taxes are also difficult to pay, in particular the indirect taxes, including the state VAT (Imposto sobre Circulação de Mercadorias e Serviços, ICMS), for which each of Brazil’s states has its own tax code, tax base and tax rates. Agriculture and agro-processing sectors are exempt from the ICMS tax on raw material and semi-processed products destined for exporting, which effectively applies to the bulk of Brazilian agricultural exports. This preference, since its introduction in the mid-1990s, has been one of the factors contributing to the expansion of agricultural exports. ICMS preferences are also granted on sales of agricultural inputs. Thus, various reductions in the ICMS taxable base apply to inter-state trade in agricultural inputs. Federal legislation also empowers states to adopt similar

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Mapping Report – Part 8 – Agriculture Sector in Brazil

preferences for transactions within states15. Other preferences concern social security contributions. Exports, including agro-food exports, are free from PIS/COFINS taxes, as well as imported agricultural inputs. The payment of these taxes is also suspended for some domestically produced primary agricultural products supplied for processing. Agricultural producers also have the right to write off losses incurred in the previous year from taxable income, and companies engaged in agricultural activity may depreciate the integrity of the value of acquired capital goods in the same fiscal year (OECD, 2005)16.

10

Partner organizations and initial indication of potential customers in Brazil

The identification of partner organizations (SMEs) was performed between July and August 2016. The method used was to collect information and integrate it from the direct contact with sector experts, literature research, one on one meetings and the author´s previous knowledge. The partners consulted have also listed other companies that may be involved in the LCBA Matchmaking Missions. Class representatives, associations, cooperatives and companies have been consulted (in person) to assist in the definition of the main challenges of the sector in the transition to a low carbon economy and in the elaboration of the mapping report of low carbon initiatives/technologies and needs and gaps in Brazil. Over the same period, the opportunity to participate in the LCBA actions was informed to potential partners. All of the Associations, cooperatives and class representatives have shown interest in spreading information regarding the LCBA opportunities to their members. To fulfill the project objectives the following steps have been taken:        

Characterization of the agriculture sector in Brazil; Mapping (technologies, services, processes); Regional context of the agriculture sector; Identification of innovation needs and gaps in Brazil; Identification of potential partner organizations in Brazil; Contact stakeholders and associations to introduce the LCBA; Identification of sector events in Brazil; Identification of potential partner organizations in the EU.

As a result, more than 80 organizations were consulted and are listed in Table 15 and Table 16.The main areas of activity of these organizations are:       

Environmental and agribusiness Consulting (with monitoring tools for sustainable agriculture, Carbon Storage - R&D, Biomass, GHG emission inventories); Fertilization; Management of agriculture property; Agricultural productivity monitoring; Geo processing; Farms/agriculture and livestock; Vegetable oil;

15 More information about reductions in the ICMS taxable base in: https://www.confaz.fazenda.gov.br/legislacao/convenios/1991/cv052_91 http://app1.sefaz.mt.gov.br/sistema/legislacao/legislacaotribut.nsf/2b2e6c5ed54869788425671300480214/efa988a72735f75483 2567940040bace?OpenDocument 16 More information about laws of free taxes in: http://www.portaltributario.com.br/artigos/incentivosexportadores.htm http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2013/Lei/L12839.htm

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Mapping Report – Part 8 – Agriculture Sector in Brazil

     

Sugar, ethanol and energy; Reforestation; Forest management; Animal diet; Biological nitrogen fixation; Biodigester manufacturers

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 15. Potential partners in Brazil: associations, class representatives and cooperatives.

INSTITUTION

AREA

SUB AREA

WEBPAGE

LOCAL

Abag ABCS

The Brazilian Agribusiness Association Brazilian Association of Swine Producers

Agribusiness Swine Producers

http://www.abag.com.br/ http://www.abcs.org.br/

ABIEC

Brazilian Association of Meat Exporters

Meat Exporters

http://www.abiec.com.br/

ABIOVE

Brazilian Association of Vegetable Oil Industries Brazilian Association of Industries of Technologies in Plant Nutrition Brazilian Association of Palm Oil Producers

Vegetable Oil

http://www.abiove.org.br/

São Paulo/SP Brasília/DF São Paulo/SP Brasília/DF São Paulo/SP

Plant Nutrition

http://www.abisolo.com.br/

São Paulo/SP

Palm Oil

http://www.abrapalma.org/pt/

Pará/PA

Brazilian Association of Seeds and Seedlings Association of livestock producers in Mato Grosso Association of biotechology companies in agriculture National Association of plant defense National Association of Producers and Importers of Inoculants

Seeds and Seedlings Livestock producers

http://www.abrasem.com.br/ http://www.acrimat.org.br/portal/

Brasília/DF Cuiabá/MT

Biotechnology

http://agrobiobrasil.org.br/en/

São Paulo/SP

Plant defense

http://www.andef.com.br/

São Paulo/SP

Inoculants

http://www.anpii.org.br/

Quatro Barras/PR

Association of soybean producers

Soybean producers

http://aprosojabrasil.com.br/2014/

Brasília/DF Cuiabá/MT

Reforestation

http://www.arefloresta.org.br/

Cuiabá/MT

Cooperative of organic coffee

http://cafecaconde.com.br/eventos

Caconde/SP

ABISOLO Abrapalma ABRASEM ACRIMAT Agrobio Brasil Andef ANPII Aprosoja Arefloresta AABGC

Association of Mato Grosso reforestation companies Associação Agropecuária Barra Grande de Caconde

BVRIO

Green Economy/ market mechanisms/ Environmental Stock Exchange BVRio

Market mechanisms

http://www.bvrio.org/

Rio de Janeiro/RJ

CNA

Confederation of Agriculture and Livestock

Representation of rural producers, Rural professional training and research

http://www.cnabrasil.org.br/

Brasília/DF

Coalizão Brasil Clima, Florestas e Agricultura

Coalition Brazil Climate, Forests and Agriculture

Climate change

http://coalizaobr.com.br/2016/

Rio de Janeiro/RJ São Paulo/SP

Low-carbon Business Action in Brazil (Project funded by the European Union)

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Mapping Report – Part 8 – Agriculture Sector in Brazil

INSTITUTION

AREA

SUB AREA

WEBPAGE

LOCAL

Cocamar COMIGO COOPAVEL COOXUPÉ FEBRAPDP

Agricultural cooperative Agricultural cooperative Agricultural cooperative Coffee Cooperative Brazilian Federation of No-Till in Straw

Cooperative Cooperative Cooperative Cooperative No-Till in Straw

http://www.cocamar.com.br/ http://www.comigo.com.br/ http://www.coopavel.com.br https://www.cooxupe.com.br/ http://febrapdp.org.br/

Maringá/PR Rio Verde/GO Cascavel/PR Guaxupé/MG Foz do Iguaçu/PR

FIESP/DEAGRO

Federation of Industries of São Paulo - Department of Agribusiness

Industries of the Agribusiness

BRSL

Brazilian Roundtable on Sustainable Livestock

Sustainable Livestock

http://www.fiesp.com.br/sobre-afiesp/departamentos/agronegociodeagro/ http://www.pecuariasustentavel.org.br/

IBA

Institutional representation of the productive chain of planted trees

Planted trees

http://iba.org/pt/

Instituto Arapyau

Articulation of organizations that work to promote sustainable development

Sustainable development

http://www.arapyau.org.br/blog/tag/mar celo-furtado/

Observatório ABC

LCA Observatory

Research

OCB

The Brazilian Cooperative Organization

Cooperative Organization

OCB-RJ Ocemg

The Rio de Janeiro State Cooperative Organization The Minas Gerais State Cooperative Organization

Ocesp

São Paulo/SP São Paulo/SP Brasília/DFSão Paulo/SP São Paulo/SP Serra Grande/Uruçuca/BA São Paulo/SP

Cooperative Organization Cooperative Organization

http://www.observatorioabc.com.br/ http://www.ocb.org.br/site/brasil_cooper ativo/index.asp www.ocbrj.coop.br www.minasgerais.coop.br

The São Paulo State Cooperative Organization National Syndicate of the Animal Health Products Industry

Cooperative organization

www.ocesp.org.br

São Paulo/SP

Animal Health

http://www.sindan.org.br/sd/

São Paulo/SP

SINDIVEG SRB

National Syndicate of Plant Protection Industry Brazilian Rural Society

Plant protection Agribusiness

http://sindiveg.org.br/sindiveg.php http://www.srb.org.br/

São Paulo/SP São Paulo/SP

UDOP UNICA

Union of Bioenergy Producers Industry Union of Cane Sugar Association for the Promotion of Research on the Improvement of Forage

Bioenergy Cane Sugar

http://www.udop.com.br/index.php http://www.unica.com.br/

Araçatuba/SP São Paulo/SP

Forage research

www.unipasto.com.br

Brasília/DF

SINDAN

UNIPASTO

Low-carbon Business Action in Brazil (Project funded by the European Union)

Brasília/DF Rio de Janeiro/RJ Belo Horizonte/MG

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 16. Potential partners in Brazil: small and medium-sized enterprises (SMEs).

INSTITUTION

AREA

SUB AREA

WEBPAGE

LOCAL

Adeco Agropecuária

Food production and renewable energy Management and technical consulting services Animal nutrition, swine genetics and seeds

Agriculture

http://www.adecoagro.com

São Paulo/SP

Technical consulting

http://www.agrifirma.com.br/

São Paulo/SP

Animal nutrition and seeds

http://www.agroceres.com.br/

Rio Claro/SP

Agroconsult

Agribusiness consulting

Agribusiness Consulting

http://www.agroconsult.com.br/

Florianópolis/SC São Paulo/SP

Agroicone

Consulting, projects and studies for various value chains

Agribusiness Consulting

http://www.agroicone.com.br/

São Paulo/SP

Agropalma

Production and marketing of vegetable oil and its derivatives

Vegetable oil

http://www.agropalma.com.br/

São Paulo/SP; Belém/PA; Tailândia/PA; Limeira/SP

Agrotools

Land management, risk monitoring and technology for agribusiness

Geoprocessing

http://www.agtmobile.com.br/

Bartira Agropecuária (Fazendas Bartira)

Meat, soybean, sugarcane and rubber production

Farms/agriculture

http://www.fazendasbartira.com.br/

BrasilAgro

Acquisition, development, operation and marketing of agricultural farms

Operation and marketing of agricultural farms

http://www.brasilagro.com/brasilagro2011/web/default_p t.asp?idioma=0&conta=28#

São Paulo/SP

BrasilFlora

Consulting for environmental, agribusiness and reforestation

Environmental Consulting

http://www.brasilflora.com.br/

São Carlos - SP

Processing of vegetable oil

http://www.caramuru.com

Itumbiara/GO

Environmental Consulting Trade Industry Financial consulting

www.ceresambiental.com.br www.coimma.com.br www.ecoagro.agr.br/

Maravilha (SC) Dracena/SP São Paulo/SP

Agrifirma Brasil Agropecuária Agroceres

Caramuru Alimentos Ceres Consultoria COIMMA ECOAGRO

Processing of soy, corn, sunflower and canola Consulting and Environmental Projects Trade Industry Wood and Metal Consulting in development and struc-

Low-carbon Business Action in Brazil (Project funded by the European Union)

São Paulo/SP São José dos Campos/SP Farms located in the Southeast and Central-West regions

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Mapping Report – Part 8 – Agriculture Sector in Brazil

INSTITUTION Ecoplam Consultaria Ambiental S/S Ltda Ecossistemas

AREA turing of financial transactions Consulting in environmental, agribusiness and reforestation Consulting and projects in agribusiness and sustainability

SUB AREA

WEBPAGE

LOCAL

Environmental licensing

[email protected]

São Paulo/SP

Environmental Consulting and GHG emission inventories

http://www.ecossistemas.net/

Piracicaba/SP Primavera do Leste/MT São Paulo/SP Nova Mutum/MT

El Tejar

Production and marketing of soybean, cotton and corn

Farms/Agriculture

http://eltejar.com/

ELANCO

Diet and animal health

Diet animal

http://www.elanco.com.br/index.aspx

Agribusiness consulting

Geoprocessing and GHG emission inventories

[email protected]

São Paulo

100% organic farm production

Farms/Agriculture

www.fazendadatoca.com

Corumbataí/ SP

Production of organic coconut

Farms Organic coconut

www.fazmedalhamilagrosa.com.br/ www.fazendanatural.com.br

Prata/MG Bahia

Forest management

http://www.florestalsantamaria.com.br

Colniza / MT

Agrochemicals Securitizing

https://www.fmcagricola.com.br http://www.gaiaagro.com.br/pt-br/home http://www.maubisa.com.br/_pt/index.ht ml

Campinas/SP São Paulo/SP

E.M. Pavão Serviços e Treinamentos Profissionais M.E. Fazenda da Toca Fazenda Medalha Milagrosa Fazenda Natural

FMC Agricultural Products Gaia Agro

Larger farm in Brazil with forest management plan Manufacturer of agrochemicals Securitizing

GRUPO MAUBISA

Holding

Holding

Grupo Roncador

Farms, cattle and grains, and limestone processing

Farms/agriculture and cattle

http://www.gruporoncador.com.br/

Guarani

Producer of sugar, ethanol and energy

Sugar, ethanol and energy

http://www.aguarani.com.br/

IDS

Democracy and Sustainability Institute Development, integration and management of forest businesses and agribusinesses

Sustainability

http://www.idsbrasil.org/

São Paulo/SP Vale do Araguaia/MT Rio de Janeiro São Paulo São Paulo/SP

Forestry Business

http://www.innovatech.com.br

Campinas/SP

Florestal Santa Maria

Innovatech Negócios Florestais

Low-carbon Business Action in Brazil (Project funded by the European Union)

Ribeirão Preto/SP

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Mapping Report – Part 8 – Agriculture Sector in Brazil

INSTITUTION

AREA

SUB AREA

WEBPAGE

LOCAL

Empty Packaging Processing

http://www.inpev.org.br/index

São Paulo/SP

Agricultural machinery

http://www.jacto.com.br/

Pompeia/SP Batatais/SP Campo Grande (MS) São Paulo/SP Panambi (RS)

JACTO

National Institute of Empty Packaging Processing Agricultural machinery

JUMIL

Agricultural machinery

Agricultural machinery

http://www.jumil.com.br/

KeplerWeber

Grain storage

Grain storage

http://www.kepler.com.br/

Environmental Consulting

http://www.manaticonsultoria.com/

Biological fertilizer

http://www.microgeo.com.br/ns/

São Paulo/SP Campinas/SP Limeira /SP

Environmental Consulting, training and GHG emission inventories

http://www.pangeacapital.com.br/

São Paulo/SP

Environmental Consulting

http://pisandoverde.weebly.com

Guaranésia/MG

Reforestation

http://www.plantar.com.br/

Belo Horizonte/MG

Sustainability reporting

http://www.rellato.com.br/

São Paulo/SP

Production of agricultural commodities Acquisition, development, operation and marketing of agricultural farms

Farms/Agriculture Operation and marketing of agricultural farms

http://www.slcagricola.com.br/

Porto Alegre/RS

http://www.solluscapital.com.br

São Paulo/SP

Usina Alto Alegre

Producer of sugar, ethanol and energy

Sugar, ethanol and energy

http://www.altoalegre.com.br/

Usina São Martinho

Producer of sugar, ethanol and energy

Sugar, ethanol and energy

www.saomartinho.ind.br/

Presidente Prudente/SP São Paulo/SP

Farms/Agriculture

http://www.vagro.com.br/vanguardaagro

São Paulo/SP Nova Mutum/MT

Environmental Consulting

http://waycarbon.com.br/

Belo Horizonte/MG

INPEV

Manati Microgeo Pangea Capital

Pisando Verde Ltda Plantar S.A Rellato SLC Agrícola Sollus Capital

Vanguarda Agro Way Carbon

Consulting in environmental, agribusiness and Land management Biological fertilizer Consulting, studies, projects and training in the following areas: climate, agricultural, environmental, management Consulting in environmental projects, renewable energies, climate change Planning, Technical and Management Reforestation Specialized consulting in sustainability reporting

Production and marketing of soybean, cotton and corn Consulting, studies and projects in the following areas: climate, agricultural,

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Mapping Report – Part 8 – Agriculture Sector in Brazil

INSTITUTION Vpg Consultoria & Projetos

Age Tecnologias

AREA environmental Consulting services and projects in various sectors of agribusiness Solutions for water treatment, sewage, industrial waste, municipal organic waste management and generation renewable energy

SUB AREA

WEBPAGE

LOCAL

Biogas

www.vpg.arq.br

Blumenau / SC

Biogas and waste management

www.agetec.com.br

São José / SC

http://biobrasilbiodigestores.blogspot.co m.br/ (61) 3201-4824

Bio Brasil Biodigestores

Biodigester manufacturers

Biogas

Ecomerit

Biodigester manufacturers

Biogas

ER-BR Bioenergia

Biodigester manufacturers

Biogas

http://www.erbr.com.br/biogas/biogas_t ecnologia.php

Londrina / PR

Biotechnology

http://www.biorenova.com.br/

Magé / RJ

Biogas Biogas

+55 11 4013-0815 www.oxysambiental.com.br

Itu / SP Curitiba / PR

Biorenova / Ferthumus Biotecnologia Fox Caldeiraria Industrial Oxys

Biotechnology: develops research and methodologies for use of specific microorganisms in various segments of agribusiness Biodigester manufacturers Biodigester manufacturers

Itumbi / SP Brasília / DF

Probiótika Roma Geossintéticos Sab - Soluções Ambientais do Brasil Sansuy

Biodigester manufacturers Biodigester manufacturers

Biogas Biogas

www.probiotika.com.br http://www.roma.ind.br/

Belo Horizonte / MG Tatuí / SP

Biodigester manufacturers

Biogas

www.sabdobrasil.com.br

Belo Horizonte / MG

Biodigester manufacturers

Biogas

www.sansuy.com.br

Embu / SP

Terra Bioenergia

Biodigester manufacturers

Biogas

Basf Agrícola

Producers of inoculants

Biological nitrogen fixation

Biagro

Producers of inoculants

Biological nitrogen fixation

Low-carbon Business Action in Brazil (Project funded by the European Union)

http://www.brasilagro.com.br/verFornec edor/terra-bioenergiaUVgcj.html http://www.agro.basf.com.br/agr/ms/ap brazil/pt_BR/content/APBrazil/solutions/Ino culantes/index http://biagro.site.com.br/v/inicio

Campo Verde / MT

São Paulo – SP Cambé - PR - 44 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

INSTITUTION

AREA

SUB AREA

WEBPAGE

LOCAL

BioSoja

Producers of inoculants

Biological nitrogen fixation

http://www.biosoja.com.br/

São Joaquim da Barra - SP

Microquímica

Producers of inoculants

Biological nitrogen fixation

Rizobacter do Brasil

Producers of inoculants

Biological nitrogen fixation

Stoller do Brasil

Producers of inoculants and biological and mineral fertilizer

Biological nitrogen fixation and biological and mineral fertilizer

Low-carbon Business Action in Brazil (Project funded by the European Union)

https://www.microquimica.com/site/inici o http://www.rizobacter.com/brasil/ http://www.stoller.com.br/

Campinas/SP Cambé - PR Campinas/SP

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Mapping Report – Part 8 – Agriculture Sector in Brazil

11

Potential partner organizations and initial indication of potential suppliers in the EU

The identification of partner organizations was performed between July and August 2016 through online research. The authors have also contacted the Ministry of Agriculture in each EU country to present the project and ask recommendations regarding potential partner organizations that could provide new technologies for the reduction of GHG emissions in the agriculture sector. As a result, a total of more than 100 organizations were identified. The complete list of these possible partner associations in the EU is described in Table 17. Some of the areas of activity of these organizations are:           

Waste treatment; Animal diet; Sustainable agriculture monitoring tools; Biomass; Fertilization; Biogas; Management of the agriculture property; Agricultural productivity monitoring; Carbon Storage - R&D; GHG emission inventories; Biotechnology

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 17. Potential partners in the EU. CATEGORIES

Private sector institution

INSTITUTION

AREA

COUNTRY

WEBPAGE OR CONTACT INFORMATION

Abelur

Agricultural management

Spain

http://www.abelur.net/index.php?option=com_content&view=article &id=5&Itemid=109&lang=es

ABERE

Management of the agriculture property

Spain

http://www.abere.eus/

AEA Technology

Waste treatment

UK

Agra-Ost

Biomass

Belgium

http://www.agraost.be

AGRIFAMENNE sa

Animal diet

Belgium

http://www.agriactiv.eu/NUTRI/Nutrition/Pages/Start/index.jsp?lng=1&mkt=25911

Agritel

Agricultural management

France

http://www.agritel.com/en/

AgroIT advanced farm management

Agricultural management

Denmark

AGROLOGY

Agricultural management

Spain

ALCOGROUP sa

Biocarburant

Belgium

http://www.alcogroup.com/

ANATIS sa

Biogas

Belgium

http://www.anatis.be

APERe asbl

Renewable energy

Belgium

http://www.apere.org/

APPO asbl

Fertilization

Belgium

http://www.appo.be

ASKET

Briquettes from straw

Poland

http://www.asket.pl

Belgian Compound Feed Industry Association (BEMEFA)

Animal diet

Belgium

www.bemefa.be

Biodiesel Holding nv

Biocarburant

Belgium

http://www.biodieselholding.com/

BIOGAS-E

Biogas

Belgium

http://www.biogas-e.be

BIOGAZ DU HAUT GEER sc

Biogas

Belgium

Email: [email protected]

Biowanze

Biogas

Belgium

http://www.biowanze.be

BMR and partners

Management of the agriculture property

Belgium

http://www.agroforesterie.be

Bondelagets Servicekontor AS

Agricultural

Norway

http://www.bondelaget.no/english/category2689.html

Low-carbon Business Action in Brazil (Project funded by the European Union)

http://www.aea.uk.com/

www.agroit.eu http://www.agrology.es/

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

Briesco sprl

Biomass

Belgium

http://www.briesco.com

CADCO asbl

Agricultural management

Belgium

http://www.cadcoasbl.be/

CCS Association

Carbon Storage R&D

EU

CN CERFRANCE

Agricultural management

France

Consultance

Consulting

Germany

Crop monitoring

Agricultural management

EU

DELACON

Animal diet

Austria

http://www.delacon.com/Company/Contact

DLV Belgium

Fertilization

Belgium

www.dlv.be

ECCSEL

Carbon Storage R&D

UK

Gasmet

GHG emission inventories

Finland

http://www.gasmet.com/company/contact-us

Gent Feed Technology Centre (GeFeTeC, Belgium)

Animal diet

Belgium

http://www.animaltaskforce.eu/Ourorganisation/Members/GEFETE CGhentFeedTechnologyCentreBelgium.aspx

GeoWebAgri

Agricultural management

Denmark

https://www.seges.dk

GFA Consulting Group GmbH

Agricultural productivity monitoring

Germany

http://www.gfa-group.de

GplusE Genotype plus Environment

Agricultural management

Denmark

https://www.seges.dk

HAZI FOUNDATIO

Agricultural management

Spain

HLBS (Main Association of Agricultural Tax Consultants and Agricultural Surveyors

Consulting

Germany

HORTIMAX B.V.

Agricultural management

Netherlands

ILB sa

Consulting

Belgium

Email: [email protected]

ISOHEMP

Materials

Belgium

http://www.isohemp.be

Low-carbon Business Action in Brazil (Project funded by the European Union)

WEBPAGE OR CONTACT INFORMATION

http://www.ccsassociation.org/about-us/our-members/poyryenergy-consulting/ http://www.cerfrance.fr/ http://www.murphy-bokern.com/ http://www.sgs.com/en/agriculture-food/

http://www.eccsel.org/

http://www.hazi.eus/es/ www.hlbs.de http://www.hortimax.com

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

KNIGHT

Management of the agriculture property

UK

Knowledge Centre For Agriculture Agro Food

Agricultural management

Denmark

https://www.seges.dk/en

KWS Benelux

Plants

Belgium

http://www.kwsbenelux.com

Lafarge

Reforestation techniques

Poland

http://www.lafarge.com/en/poland-a-new-technique-more-effectivereforestation

Lambiotte

Solvents

Belgium

http://www.lambiotte.com/

Legumes

Cropping systems

UK

LORRA

Management of the agriculture property

Spain

LRF Konsult

Consultant

Sweden

LURGINTZA S.Coop

Management of the agriculture property

Spain

http://www.lurgintza.net/index.php?lang=es

Lursail S.L.

Agricultural management

Spain

http://www.lursail.net/vercontenido.asp?conid=11226&menid=1227 &web=21

NPG energy sa

Energy

Belgium

http://www.npgenergy.be

ODE-Vlaanderen vzw

Energy

Belgium

http://www.ode.be

OLEON Biodiesel

Energy

Belgium

http://www.oleon.com/home

PERLITE ITALIANA SRL

Agricultural management

Italy

Pôle IAR

Biofuels

Belgium

http://www.iar-pole.com

PROHEALTH

Agricultural management

Denmark

https://www.seges.dk

Promisc scrl

Biomass

Belgium

www.promisc.be

Ragt Energie

Energy

France

http://www.ragt-energie.fr/

Refertil

Agricultural management

Denmark

https://www.seges.dk

RENOGEN s.a.

Energy

Belgium

http://www.4energyinvest.com

Low-carbon Business Action in Brazil (Project funded by the European Union)

WEBPAGE OR CONTACT INFORMATION http://www.knightfrank.co.uk/rural-property/management

http://www.legumefutures.de/ http://www.lorra.eus http://www.lrfkonsult.se / Email: [email protected]

http://www.perlite.it

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

Public sector agency

INSTITUTION

AREA

COUNTRY

SCAP - Sociedade de Ciências Agrárias de Portugal

Consulting

Portugal

http://www.scap.pt/

SEDE BENELUX

Biomass

Belgium

http://www.sede.be

SELMA

Mechanical treatment of waste reducing GHG emissions through the use of a filter

Poland

http://bio-com.pl / Email: [email protected]

SenseTest

Materials

Portugal

https://www.sensetest.pt/

SGS

Biofuels

Portugal

http://www.sgs.pt/en/Agriculture-Food/Forestry/Services-for-ForestProducts-and-Solid-Biofuels/Inspection-Services/MSSConsulting.aspx

SIA GROGLASS

Agricultural management

LATVIJA

http://www.groglass.com/contacts

SUSTAFFOR

Reforestation techniques

EU

http://www.sustaffor.eu/?lang=en

Total Belgium sa

Biolubricant

Belgium

UAGA

Agricultural management

Spain

ValBiom

Biomass

Belgium

Vereniging van accountants- en belastingadviesbureaus (VLB)

Monitoring tool for sustainable agriculture

Netherlands

VITO NV - HQ

Monitoring tool for sustainable agriculture

Belgium

Wageningen University

Consulting / Education / Plant Sciences

Netherlands

Agricultural Property Agency Poland

Management of the agriculture property

Poland

http://www.anr.gov.pl/web/guest/kontakt

Confederacion Espanola de Fabricantes de Alimentos

Animal diet

Spain

www.cesfac.es

Low-carbon Business Action in Brazil (Project funded by the European Union)

WEBPAGE OR CONTACT INFORMATION

http://www.total.be http://www.uaganet.net/ http://www.valbiom.be/association/presentation.htm#.V6R_69eIzTA http://vlb.nl/

https://vito.be/en https://www.wageningenur.nl/en/Persons/Fred-van-vanEeuwijk.htm

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

WEBPAGE OR CONTACT INFORMATION

EFAC – The European Federation of Agricultural Consultants

Agricultural management

EU

http://www.efac.net/

EU Feed Additives & Premixtures Association (FEFANA)

Animal diet

EU

www.fefana.org

European Feed Manufacturers' Federation (FEFAC)

Animal diet

EU

www.fefac.eu

Knowledge Transfer Network of Innovate UK Network

Knowledge Transfer Network

UK

https://connect.innovateuk.org/web/biosciencesktn/overview Email: [email protected]

BOOST

Research

Portugal

CEI - Europe 2020 Strategy

Climate, Environment and Rural Development

Italy

Centre de Cooperation International en Recherche Agronomique pour le Developpement

Performance of Tropical Production and Processing Systems

France

http://www.cirad.fr/

Centre des Technologies Agronomiques

Agricultural management

Belgium

http://www.cta-stree.be

Centre Technique de l’Alimentation Animale (TECALIMAN)

Management of the agriculture property

France

www.tecaliman.com

CIPF asbl

Agricultural management

Belgium

http://www.cipf.be/

CIRAD

Agricultural management

France

http://www.cirad.fr/en

CLIMACT sa

Energy

Belgium

http://www.climact.com/

Climate-KIC

Management of the agriculture property

EU

http://www.climate-kic.org/

CO2 Strategy

Agricultural management

Belgium

http://www.co2strategy.be

Compostilla - OXYCFB300

Carbon Storage R&D

EU

Compuestos para Animales

Research institution

Low-carbon Business Action in Brazil (Project funded by the European Union)

http://inovisa.pt / Email: [email protected] http://www.cei.int/content/climate-environment-and-ruraldevelopment

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

COPO sprl

Agricultural management

Belgium

http://www.copo.be/under.php

CRA-W

Agricultural management

Belgium

http://www.cra.wallonie.be

Emissions Zéro scrl

Agricultural management

Belgium

http://www.emissions-zero.coop/

Fachagentur für nachwachsende Rohstoffe

European and International Cooperation / Project development

Germany

http://www.fnr.de/

Food Standards Agency

Animal diet

UK

Friedrich-Loeffler-Institut

Animal diet

Germany

https://www.fli.de/en/

Green Watt sa

Biogas

Belgium

http://www.greenwatt.be

GreenWin

Agricultural management

Belgium

http://www.greenwin.be/

GxABT - Unité de Phytotechnie des régions tempérées

Biomass

Belgium

http://www.gembloux.ulg.ac.be/

IBG-3: Agrosphere

Agricultural management

Germany

http://www.fz-juelich.de/ibg/ibg3/EN/About%20us/Contact/_node.html

INSTITUT DE RECERCA I TECNOLOGIA AGROALIMENTARIES

Research

Spain

http://www.irta.cat/es-ES/Paginas/default.aspx

Institute for Sustainable Agriculture IAS-CSIC

Research

Spain

http://www.ias.csic.es/en/

Institute of Climate-Smart Agriculture

Director / Climate protection in agriculture

Germany

Institute of Field and Vegetable Crops (IFVCNS)

Crop improvement and developing cropping systems

Serbia

Institute of Food Science and Nutrition (ISAN), Sacred Heart Catholic University of Piacenza

Animal diet

Italy

Low-carbon Business Action in Brazil (Project funded by the European Union)

WEBPAGE OR CONTACT INFORMATION

http://acaf.food.gov.uk/

http://www.thuenen.de/en/ak/

http://www.nsseme.com/en/contact/?opt=institut&cat=contact&lang =en

www.unicatt.it/Piacenza

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

Institute of Technology and Life Sciences

Research

Poland

http://www.itep.edu.pl

Institute of Technology and Life Sciences

Research

Poland

http://www.itep.edu.pl

Internationales Institut Fuer Angewandte Systemanalyse

Research

Austria

http://www.iiasa.ac.at

IRBAB-KBIVB asbl

Research

Belgium

http:// www.irbab-kbivb.be

James Hutton Institute (JHI)

Crop plants

Scotland’s

http://www.hutton.ac.uk/

Kiel University

Department of Hydrology and Water Resources Management/ Rural river basins

Germany

http://www.hydrology.uni-kiel.de/

NILU - The Norwegian Institute for Air Research

GHG emission inventories

Norway

PLANT RESEARCH INTERNATIONAL B.V.

Research/ Research institution

Netherlands

Sociedade Portuguesa de Estudos Rurais

Researchn

Portugal

http://sper.pt/contactos/

TEAGASC

Biological nitrogen fixation (BNF)

Republic of Ireland

https://www.teagasc.ie/

Technische Universität Berlin

Institute of Crop Science and Plant Breeding

Germany

http://www.bodenkunde.tu-berlin.de/home/parameter/en/

Universität Bonn

Technology and Innovation Management in Agribusiness

Germany

https://www.lwf.uni-bonn.de/Institutes/ilr-en/tim-en/starten?set_language=em

Universität Oldenburg, Institute for Biology and Environmental Sciences

Landscape Ecology Group

Germany

http://www.uni-oldenburg.de/en/landeco/

Universität zu Kiel

Institute of Crop Science and Plant Breeding

Germany

http://www.pflanzenbau.uni-kiel.de/de/mitarbeiter/kage

Low-carbon Business Action in Brazil (Project funded by the European Union)

WEBPAGE OR CONTACT INFORMATION

http://www.nilu.no/OmNILU/Selskaper/tabid/94/language/enGB/Default.aspx http://www.wur.nl/nl/ExpertisesDienstverlening/Onderzoeksinstituten/plant-research.htm

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Mapping Report – Part 8 – Agriculture Sector in Brazil

CATEGORIES

INSTITUTION

AREA

COUNTRY

WEBPAGE OR CONTACT INFORMATION

Wageningen University and Research Centre (Wageningen UR)

Animal diet

Netherlands

www.wageningenur.nl

Wageningen UR

Reduction of GHG in arable farming, open field horticulture, and animal husbandry

Netherlands

http://www.wur.nl/en/wageningen-university.htm

WATBIO

Biomass

UK

Wissenschaftliche Leiterin der Arbeitsgruppe Immuno-Nutrition

Animal diet

Germany

https://www.fli.de

ZALF

Carbon Storage R&D

Germany

http://www.zalf.de

zeroemissionsplatform

Carbon Storage R&D

EU

Low-carbon Business Action in Brazil (Project funded by the European Union)

www.watbio.eu

http://www.zeroemissionsplatform.eu/ccs-technology/capture.html

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Mapping Report – Part 8 – Agriculture Sector in Brazil

12

Findings and Conclusions

The agricultural sector has been vital to Brazil’s economic and social development. A leading producer and exporter of major commodities, the country’s agriculture faces the challenge of balancing a rising demand, globally and domestically. This rapid growth of the sector is mainly due to productivity gains in large-scale commercial operations and cooperatives. One of the driving forces behind technological innovations has been the Brazilian Corporation for Agricultural Research (EMBRAPA), through its action in developing high-yielding, better adapted agriculture varieties and the promotion of improved practices for land management and reclaiming, such as liming, fertilization, nitrogen fixation, conservation agriculture and, most recently, crop-livestockforestry integration systems. However, labor costs in Brazil have been increasing due to economic growth, inflation, more stringent labor regulations and increasing scarcity of skilled workers. Between 2007 and 2011, the minimum wage more than quadrupled. Consequently, in conjunction with technological developments, large-scale and commercial farms rely more heavily on mechanization. Regarding climate change, various policies do not specifically focus on agricultural emissions, but on the reduction and regularization of land-use related deforestation, such as monitoring on beef and soy production that involves deforestation. However, the ABC Plan, which promotes the adoption of good practices to reduce greenhouse gases emissions from agriculture and has elevated Brazil to the main stage of the global debate on combating climate change, so far has shown only modest results. It is extremely necessary to overcome bureaucratic barriers, expand the training of technicians, guide planning companies in developing projects, adapt credit rules, improve infrastructure, lower interest rates and tax requirements, increase agricultural insurance and, especially, increase the participation of the private sector in implementing the plan. The cooperation agreements between Brazilian and European companies are extremely important to leverage such actions. Moreover, Brazil - accounted for 2.48% of global emissions – ratified, on September 2016, the pact to curb climate change, the so called Paris Agreement, as well as the United States and China did, just to name a few other countries. Signed last year in Paris Climate Conference, the agreement aims to limit the rise in global temperature below 2° C, or as close to 1.5° C. To get there, each country has pledged to reduce its emissions of greenhouse gases. Brazil's goal is to cut emissions by 37% by 2025 and 43% by 2030 - both in relation to 2005 levels. Based on the research conducted for this report and consequent results, there are various areas with a high potential for the operation of Brazilian and European companies, with relationships based on cooperation with medium and long - term vision. The main areas of gaps and of potential cooperation are listed in Table 18. However, the potential of business cooperation in the agricultural sector between Brazil and the 28 EU countries is very complex, due to the profile of the sector. For a more comprehensive evaluation, it will be necessary to study the dynamics of each potential area individually (mapping supply potential of the main technologies, processes and services in the EU and main demands and gaps in Brazil), evaluating for e.g. the degree of interaction, trust, synergy and exchange of information.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Table 18. Main potential cooperation areas between Brazil and the EU in the agriculture sector.

BRAZIL – MAIN AREAS GAPS             

Fertilization; Environmental and agribusiness Consulting; Management of the agriculture property; Agricultural productivity monitoring; Geo processing; Farms/agriculture and livestock; Biofuels; Reforestation; Forest management; Animal diet; Biological nitrogen fixation; Bio digester; Biotechnology.

EU – MAIN AREAS SUPPLY           

Waste treatment; Animal diet; Sustainable agriculture monitoring tools; Biomass; Fertilization; Biogas; Management of the agriculture property; Agricultural productivity monitoring; Carbon Storage; GHG emission inventories; Biotechnology.

The main Brazilian technologies, services and processes related to low carbon agriculture are listed in Table 15. Some of these technologies need to be expanded or enhanced to meet national demand. This implies that partnerships with European companies that possess such knowledge are essential to Brazil. The main LCA technologies - recovery of pasturelands, integrated production systems (CLI and CLFI), forest planting and expansion of the biodigesters energy generation park from the management of animal waste - are the main development trends in the future. There is significant room for forest planting, since the goal is to reforest at least 12 million hectares. The two main focuses are the Cerrado and the Atlantic region The current bottleneck faced in this sector is the production of seedlings of native species, as demand will be much higher than the existing supply in Brazil. Consequently, interesting opportunities may arise, windowing technology cooperation with innovation in vitro playback systems, cultivation and maintenance of large-scale native species. As for the recovery of pastures and integrated production systems, the cooperation and investments into animal breeding could reduce the time of slaughter to 20 to 24 months, increase the conversion rate (reaching around 500 kg in 20 to 24 months), allow high temperature tolerance and resistance to endoparasites (e.g. roundworms) and ectoparasites (e.g. fleas). The opportunities for European companies are: i) to transfer to other countries the FTET (fixed-timed embryo transfer) and TAI (artificial insemination to fixed time) procedures; ii) contribute to the development and production of herd feed that leads to lower GHG emissions due to enteric fermentation by animals and iii) to expand for all regions of Brazil the production of good quality forage seeds. By using these technologies, the carbon footprint decreases and the meat can be certified. Regarding animal waste use, Brazil does not have a developed network of biodigesters’ manufacturers that can meet the needs of rural producers spread all over the country (the few existing companies are concentrated in the South and Southeast regions). It would be interesting to expand the number of companies producing biodigesters in Brazil with the technological contribution coming from European companies specialized in biogas, as well as establish partnerships between Brazil and the EU to increase the efficiency of the biodigestores produced. For example, conducting research with anaerobic treatment involving the evaluation of the use of inoculum with a microbial population adapted to the residue, improving the performance of the biodigesters. In addition, other areas of the agricultural sector in Brazil will benefit from the agribusiness' growth based in low carbon technologies in partnership with EU companies, such as machinery and the fertilizing industry, environmental and agribusiness consultancy, technical assistance to the management of the agriculture property, inoculant companies, genetic improvement of plants and animals and geoprocessing for land use change mapping, among others.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

However, to promote the sustainable transition of SMEs to low carbon technologies and resource-efficient processes, some market barriers in Brazilian agribusiness must be overcome. The main barriers faced are language, logistic infrastructure, qualified professional, taxes, bureaucracy, delays and corruption. Other existing barriers concern the legal uncertainty about the interpretation and application of many legal provisions that impact agricultural activities, high costs for land and labor, lack of technical assistance, land acquisition restrictions, lack of tax incentives for low carbon initiatives, structural weaknesses in the economy, burdensome administrative procedures and low engagement in international trade. Even so, EU companies interested in the Brazilian agricultural sector can benefit from the help of organizations that support business networks, in addition to contacting the Brazilian Embassy. Such units exist to assist in establishing business contacts, as well as providing all the necessary information about the Brazilian market. The main organizations in Brazil are SEBRAE, APEX, CNI, CNC and Fiesp. Finally, the Brazilian agricultural sector needs to increase its productivity in order to respond to the rising demand for food and energy, both domestic and international. However, these concerns should comprehend not only gains in production, but also the adverse effects of climate change, aiming at the transition to low carbon agriculture (LCA). The LCA can positively impact Brazilian Agribusiness, making it more competitive, resilient to climate changes and reliant on more sustainable production models. This agenda is fully in synergy with the objectives of the Low Carbon Business Action initiative.

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13   

   

 

 

         

References ABRAF. Anuário Estatístico da ABRAF - Ano Base 2012, Brasília. 2013. CONAB. Acompanhamento da safra brasileira de grãos, v. 10 Safra 2015/16 - Décimo levantamento, Brasília, p. 1-179, julho 2016. ISSN: 2318-6852 DIEESE. Estatísticas do meio rural 2010-2011. 4.ed. / Departamento Intersindical de Estatística e Estudos Socioeconômicos; Núcleo de Estudos Agrários e Desenvolvimento Rural; Ministério do Desenvolvimento Agrário. -- São Paulo: DIEESE; NEAD; MDA, 2011. 292p. ISBN 978-85-60548-84-2 (MDA). FAO (Food and Agriculture Organization of the United Nations). Food Outlook BIANNUAL REPORT ON GLOBAL FOOD MARKETS. ISSN 1560-8182 (Online). Itália: Roma. 2016. 139p. FGV Agro. Brazilian Agribusiness: Competitive and Sustainable. São Paulo State. N°24, ISBN 978-85-64878-28-0. 2015. 60p. FIESP. (2014). Outlook Fiesp 2023 projeções para o agronegócio brasileiro. São Paulo: Federação das Indústrias do Estado de São Paulo. Haupt, F. (2014), ‘Sector Profile: Brazil’, background material for Dickie, A., Streck, C., Roe, S., Zurek, M., Haupt, F. and Dolginow, A. (2014), Strategies for Mitigating Climate Change in Agriculture: Abridged Report, Climate Focus and California Environmental Associates, at http://www.climateandlandusealliance.org/uploads/PDFs/Brazil_Sector_Profile.pdf. IBGE: Instituto Brasileiro de Geografia e Estatística (2006), Censo Agropecuário 2006, Rio De Janeiro. IPCC, 2014: Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R.K. Pachauri and L.A. Meyer (eds.)]. IPCC, Geneva, Switzerland, 151 pp. LAPIG. FERREIRA, L. G., SOUZA, S. B., & ARANTES, A. E. (2014). RADIOGRAFIA DAS PASTAGENS DO BRASIL. Goiânia: LAPIG. MAPA/ACS, 2012. Plano setorial de mitigação e de adaptação às mudanças climáticas para a consolidação de uma economia de baixa emissão de carbono na agricultura: plano ABC (Agricultura de Baixa Emissão de Carbono) / Ministério da Agricultura, Pecuária e Abastecimento, Ministério do Desenvolvimento Agrário, coordenação da Casa Civil da Presidência da República. – Brasília, 173 p. MAPA. (2013). Projeções do Agronegócio: Brasil 2012/2013 a 2022/2023. Ministério da Agricultura, Pecuária e Abastecimento, Assessoria de Gestão Estratégica, Brasília. MAPA, 2015. Ministério da Agricultura, Pecuária e Abastecimento. Projeções do Agronegócio: Brasil 2014/2015 a 2024/2025 / Ministério da Agricultura, Pecuária e Abastecimento. Assessoria de Gestão Estratégica. – Brasília: MAPA/ACS, 2015. 133 p. MME/EPE. Ministério de Minas e Energia, Empresa de Pesquisa Energética (MME/EPE) Balanço Energético Nacional. 2013. Observatório ABC (2013). Agricultura de Baixa Emissão de Carbono: A evolução de um novo paradigma, São Paulo, 2013. Observatório ABC. Invertendo o sinal de carbono da agropecuária brasileira. São Paulo: FGVAgro. 2015. OECD (2005), OECD Review of Agricultural Policies: Brazil 2005, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/9789264012554-en. OECD/Food and Agriculture Organization of the United Nations (2015), OECD-FAO Agricultural Outlook 2015, OECD Publishing, Paris. http://dx.doi.org/10.1787/agr_outlook2015-en PPM/IBGE. (2014). Produção da Pecuária Municipal. Rio de Janeiro. PAM/IBGE. (2014). Produção Agrícola Municipal. Brasília. SEEG. 2014. Documento de análise: evolução das emissões de gases de efeito estufa no Brasil (1970-2013) - Setor Agropecuário / Instituto de Manejo e Certificação Florestal e Agrícola (IMAFLORA). – São Paulo: Observatório do Clima, 2014.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

   

SEEG, 2016. Documento de análise: emissões de gases de efeito estufa do Setor Agropecuário (1970-2014). Instituto de Manejo e Certificação Florestal e Agrícola (IMAFLORA). – São Paulo: Observatório do Clima, 2016. Sparovek, G.; Barretto, A. G. O. P.; Matsumoto, M.; Berndes, G. Effects of governance on availability of land for agriculture and conservation in Brazil. Environ. Sci. Technol., DOI: 10.1021/acs.est.5b01300; 2015. Strassburg, B.B.N. et al. 2014. When enough should be enough: Improving the use of current agricultural lands could meet production demands and spare natural habitats in Brazil. Global Environmental Change, 28, 84-97. WRI. World Resources Institute. What is an INDC? Acesso em 10/09/2016. Disponível em: http://www.wri.org/indc-definition

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Mapping Report – Part 8 – Agriculture Sector in Brazil

Appendix: relevant events on the sector in Brazil Below are listed the main relevant events in the agriculture sector17: 



 

Agrishow May 2017: Conceived by the main associations connected, directly and indirectly, to Brazilian agribusiness as ABAG – Brazilian Agribusiness Association, ABIMAQ – Brazilian Machinery and Equipment Industry Association, ANDA - National Association for Fertilizer Dissemination, FAESP – Agriculture and Cattle Federation of São Paulo State and SRB - Brazilian Rural Society, Agrishow is organized by Informa Exhibitions. It hosts the success of the Brazilian agribusiness and major launches in technology. http://agrishow.com.br/en/ GAF 2017: Global Agribusiness Forum, representing the Brazilian farm sector; together with ABRAMILHO the official representative of the International Maize Alliance in Brazil, whose main objective is to collaborate on a global basis and address key issues related to food security, biotechnology, management, trade and producer image; ABCZ, whose mission is to promote the sustainable increase of world’s beef production through the genealogical record, breeding and promotion of zebu breeds; and DATAGRO, one of the largest agricultural consultancies in the world. http://www.globalagribusinessforum.com/en ABAG Congress: The Brazilian Agribusiness Association (ABAG). The event, which usually takes place in the first week of August, is scheduled on most Brazilian executives and agribusiness professionals´ agendas. http://www.abag.com.br/en/ ABC Observatory: The Getulio Vargas Foundation, which is the main Brazilian Think Tank, has set up the ABC Observatory in 2013, an initiative aimed at engaging society in the debate over low carbon agriculture. The ABC Observatory can allocate events on low carbon agriculture in Brazil

17 It is worth to mention that there are also important events specific for each culture, e.g. the FEMAGRI (16-18th March) related with the coffee production.

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Mapping Report – Part 8 – Agriculture Sector in Brazil

A n n e x A – Te c h n o l o g y d e m a n d m a p - A G R I C U LT U R E S E C T O R The subsectors with the highest potential for a Matchmaking Event are: 1) those that are not available and/or incipient in Brazil (rating 4 or 3 in Section B) and, 2) where the innovation needs & gaps in Brazil are high (rating 1 in Section E). These sub-sectors are highlighted in red below. E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

Technical assistance

Management of the agriculture property

Low-carbon consultancy

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available

2

2

Software systems; services; people Monitoring tool for sustainable capacitation (train- agriculture ing and education)

Services

Technology of GHG emission inventories

agrienvironmental consultancy

1

Services

Precision agricul-

2

Software systems Modeling and software tools

Monitoring tool for sustainable agriculture

Low-carbon Business Action in Brazil (Project funded by the European Union)

1

Potential: companies specializing in low-carbon technologies for the agricultural sector in order to enable the adoption and maintenance of this technology (knowledge transfer for tools, services, software); companies offering capacitation and training Barriers: continental size of Brazil; farming systems in Brazil are highly heterogeneous in size, input, modernization and income

2

Potential: potential for companies offering transfer of low carbon technologies and GHG emission inventories (tools, services, software) Whole country Barriers: farming systems in Brazil are highly heterogeneous in size, input, modernization and income

Consulting companies; agriculture and livestock farms

2

Potential: potential for companies offering transfer of good agricultural practices (tools, services, software) Whole country Barriers: farming systems in Brazil are highly heterogeneous in size, input, modernization and income

Consulting companies; agriculture and livestock farms

2

Potential: potential for companies

Information Technology

Whole country, better potential in North and Northeast regions

Whole country

Consulting companies; agriculture and livestock farms; municipal, state and federal government

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Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

4 - not available

ture

and services

Land use change mapping

3

Software systems Monitoring tool and software and services for land use; Remote sensing

1

3

Services (chemical analysis; training and execution)

1

Monitoring of Carbon Storage GHG emissions avoided and carbon stored in the soil GHG emission inventories

Baseline research

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

Training and execution to collect soil samples and carbon stock determination in laboratory

2

Software systems tools for monitoring GHG emisand services sions

2

Research and Development; services

Development of emission and removal factors

Low-carbon Business Action in Brazil (Project funded by the European Union)

1

2

offering transfer of low carbon technologies (tools, services, software) Barriers: continental size of Brazil; farming systems in Brazil are highly heterogeneous in size, input, modernization and income Potential: companies providing satellite imagery and GIS software; companies offering transfer of technology regarding carbon monitoring in order to measure the avoided emissions or carbon stored in the production of low-carbon system Barriers: continental size of Brazil; qualified professionals; lack of land tenure regulations Potential: for companies offering transfer of technology regarding carbon monitoring in order to measure the avoided emissions or carbon stored in the production of low-carbon system Barriers: qualified professionals Potential: for companies offering technology of carbon monitoring in production system Barriers: availability of farm data (inadequate property management); lack of professionals to supply the demand Potential: for companies offering carbon monitoring technology in various production systems Barriers: availability of farm data (inadequate property management); lack of professionals to supply the demand

companies; agriculture and livestock farms; Consulting companies

Whole country

Information Technology companies; agriculture and livestock farms; Consulting companies

Whole country

Low-carbon consultancy; soils laboratory; agriculture and livestock farms

Whole country

Low-carbon consultancy; agriculture and livestock farms; municipal, state and federal government; Information Technology companies

Whole country

Research Center; municipal, state and federal government; Consulting companies; private sector

- 62 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

Biological nitrogen fixation

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

4 - not available

Research and 1 (soy) Development; 3 (another crops inoculation of and forages) seeds

Develop biological nitrogen fixation in new agricultural species

1

Plant nutrition

Animal nutrition

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

Efficient fertilization

3

Software systems and services; Monitoring tool for sustainable Fertilizers; Market- agriculture ing and Sales

Animal diet

3

Animal diet

Development and production of food for the herd that cause less emission by enteric fermentation.

Low-carbon Business Action in Brazil (Project funded by the European Union)

1

1

Whole country, better potential in Potential: companies with potential to Northeast for develop and / or adapt new inoculants, cowpea; in Cenopening new market prospects and tral-West for anticipating the demands of the producforage, corn, tive sector to sugarcane, corn, rice, beans; in South wheat, sorghum, beans, groundnuts and for corn, rice and forages wheat; in SouthBarriers: few producers of inoculants; east for sugarslow process of technological developcane, corn, sorment and market opening ghum, beans, groundnuts Potential: potential for companies offering efficient fertilization, monitoring tool for sustainable agriculture and to restore the soil damaged by monocultures and to adapt it to new crops during the off season; tools and technologies aimed at efficient management of rural Whole country property, especially for efficient use of inputs (fertilizers and pesticides) Barriers: continental size of Brazil; farming systems in Brazil are highly heterogeneous in size, input, modernization Potential: potential for companies offering development and production of food for the herd that cause less emission by enteric fermentation. Whole country Barriers: high effective cattle (over 200 million heads) with several species of animals with different nutritional re-

Research Center; producer of seeds; private sector; agriculture and livestock farms; producers and importers of inoculants

Information Technology companies; agriculture and livestock farms; Consulting companies; Industry of Fertilizers

livestock farms; Industry and commercialization of animal diet

- 63 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available quirements

Reforestation

2

Services; forestry; Reforestation techniques; research and technologies of production of development seedlings of forest species

2

determination of data derived of the vegetation index (presSoftware systems ence of straw and crop resiand services dues) related with weather data (temperature and humidity) for fire risk

1

Software systems; services (mainly technical assistance); forage seed production; fertilizers and pesticides; machinery; forestry

2

Soil conservation

Fire detection

Livestock

Recovery pastures; Integration crop livestock forest

Tools and techniques of implementation and monitoring for sustainable agriculture; degraded pasturelands surveillance; efficient use of inputs and machinery for the pasture recovery areas; forage seed production

Low-carbon Business Action in Brazil (Project funded by the European Union)

2

2

Potential: potential for companies offering reforestation techniques (including training e technical assistance) suited for different regions of the country and production of seedlings Barriers: continental size of Brazil (different climates, soils and relief); many species of trees; appropriate machinery; lack of professionals to supply the demand; adaptation to local conditions; The restrictions imposed by the Brazilian government for the purchase of land by national groups that have majority composition of capital foreign Potential: potential for companies offering detection of fire risk from data binding derived vegetation index (presence of straw and crop residues) with weather data (temperature and humidity) Barriers: Municipalities without weather base; acquisition of vegetation index images

Whole country

Agriculture and livestock farms; research center; municipal, state and federal government; Consulting companies; private sector

Whole country, better potential in Central-West

Agriculture and livestock farms; research center; municipal, state and federal government; Consulting companies; private sector

Potential: potential for companies that dominate the low-carbon technologies in livestock including property management (Livestock occupies 25% of BraWhole country zil´s total area - corresponds to 220 million hectares, of which it is estimated that about 50% are in a process of degradation); strong concentration of

Agriculture and livestock farms; consulting companies; private sector

- 64 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available forage seeds market in the CentralWest and Southeast and large gap in other regions of Brazil, being a niche market to be exploited Barriers: continental size of Brazil (different climates, soils and relief); many species of forages (adaptation to local conditions); appropriate machinery; lack of professionals to supply the demand; farming systems in Brazil are highly heterogeneous in size, input, modernization and income

Artificial insemination and genetic enhancement

Crops

No Tillage system

4

Improving the genetic of animals: cooperation and investServices; biotech- ments into animal breeding nology could create new markets not only for Brazil, but for other tropical areas

1

1

Software systems; services (mainly technical assistance); fertilizers and pesticides; machinery

3

tool and techniques of implementation and monitoring for sustainable agriculture and efficient use of inputs and machinery for soil conservation

Low-carbon Business Action in Brazil (Project funded by the European Union)

Potential: The opportunity is to transfer of FTET procedures (fixed-timed embryo transfer) and TAI (artificial insemination to fixed time). By using these technologies, the carbon footprint decreases and the meat can be certified. Whole country Barriers: exchange rate; lack of capacity, adaptation to local conditions; Brazilian legislation; technological barriers such as R & D and institutional barriers, in which includes the intellectual property, food safety and biosecurity. Potential: potential for companies that dominate the low-carbon technologies in crops including property management; companies linked to soil conservation Barriers: continental size of Brazil Whole country (different climates, soils and relief); many species of crops (adaptation to local conditions); appropriate machinery; lack of professionals to supply the

Livestock farms; consulting companies; private sector

Agriculture and livestock farms; consulting companies; private sector (food production)

- 65 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

Genetic improving of plants

Agricultural productivity monitoring

Planted forests

Planted forests (with native -

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available

2

2

Development of more productive varieties, more resistant to Services; biotechclimatic stresses and efficient nology use of inputs to increase the supply of food

Software systems; Modeling and monitoring tool services; research and software for land use; and development Remote sensing

3 (native) Forestry; Soil 2 (exotic: Euca- conservation;

Interesting opportunities for technological cooperation with

Low-carbon Business Action in Brazil (Project funded by the European Union)

2

demand; farming systems in Brazil are highly heterogeneous in size, input, modernization and income Potential: potential for companies offering biotechnology services Barriers: lack of professionals to supply the demand; continental size of Brazil (different climates and soils); Brazilian legislation; technological barriers such as appropriateness, the accumulation and R & D; scale barriers such as production, advertising and extension of the market; and institutional barriers, in which includes the intellectual property, subdivided into patents and cultivars, food safety and biosecurity.

Whole country, better potential in Central-West, South and Southeast

Agriculture and livestock farms; research center; municipal, state and federal government; Consulting companies; private sector

Potential: companies offering productivity estimate of main agricultural crops, including fodder, based on agrometeorological local, regional and national models, making it possible to use the indicator of tons CO2/ton of grain; monitoring of the vegetative cycle based on vegetation index images. It gives the Whole country possibility to know the carbon storage potential of biomass production systems and thus follow the evolution of the lowcarbon agriculture Barriers: lack of professionals to supply the demand; continental size of Brazil (different climates and soils)

Agriculture and livestock farms; research center; municipal, state and federal government; Consulting companies; private sector

Potential: Development of more effec1 (native) Whole country 2 (exotic: Euca- tive techniques of obtaining and produc-

Farms; research center; municipal, state and

2

- 66 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process mainly - and exotic species)

Animal waste

Biofuels

waste treatment

Ethanol

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available lyptus and Pinus) biotechnology; Software systems; services; research and development; fertilizers and pesticides; machinery

2

2

Agricultural residues

Software systems; services; research and development; Marketing and Sales

innovation in vitro reproduction lyptus and Pinus) systems, cultivation and maintenance of native species of large scale.

Expansion of the biodigester park from the management of animal waste

Harvested areas surveillance; Monitoring of emissions avoided; Agricultural productivity monitoring; international market

Low-carbon Business Action in Brazil (Project funded by the European Union)

ing seeds and seedlings, manipulation of the land, planting, pest control, fertilization, harvesting and transport Barriers: Lack of technological support for commercial planting of native species; Insufficient amount of seeds and seedlings; Lack of Space Planning (designing corridors and maximize conservation of biodiversity and ecosystem services); The restrictions imposed by the Brazilian government for the purchase of land by national groups that have majority composition of capital foreign

federal government; Consulting companies; private sector

2

Potential: improvement of technologies and equipment for treatment of swine waste. This technology reduces methane emissions by waste and is still able to generate power Barriers: exchange rate; , lack of capacity, adaptation to local conditions

Whole country, better potential in Southeast and South

engineering/manufacturer companies, food industry, farmers of livestock, swine and chickens

2

Potential: companies offering a)monitoring and mapping of areas harvested of sugarcane using remote sensing and satellite images (at the regional level to national - NOAA / MODIS and on a local scale to regional, e.g. Landsat and CBERS) for separation of the manual areas or mechanical harvesting (on this way it is better detail the emission inventories of the sugarcane industry); b) transfer of technology regarding carbon monitoring in order to

Whole country, better potential in Southeast, Central-West and Northeast

Farms of cane; research center; municipal, state and federal government; Consulting companies; private sector; alcohol and sugar cane plants

- 67 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available measure the avoided emissions or carbon stored in the substitution of fossil fuel by ethanol; c) productivity estimate of cane based on agro-meteorological local, regional and national models; d) companies engaged in export of biofuels Barriers: tariff and non-tariff barriers imposed by developed countries (to advance the international market); lack of professionals to supply the demand; continental size of Brazil (different climates and soils); Limitation imposed by the poor infrastructure of the country, on access roads, highways, railways and ports, which causes additional costs to transport to the mills and for the marketing of products

Biogas

2

Agricultural residues and animal waste

Development of mechanical/thermal/-chemical pretreatment; development of mechanical pre-treatment for solid substrates; new technologies with high loading rates/low retention times associated with high efficiency; development of compact systems of low footprint; development of robust systems that retain performance even in face of variations in the substrate; development of more resistant membranes for lagoon covering

Low-carbon Business Action in Brazil (Project funded by the European Union)

1

Potential: Potential for companies offering increased biogas generation (new technologies, optimized design, better practices, etc.) Barriers: exchange rate, lack of capacity, adaptation to local conditions.

Whole country, better potential in S, SE and CentralWest

engineering/manufacturer companies, food industry, livestock raisers; waste management developers and operators (concession holders)

- 68 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

E) INNOVATION, NEEDS & GAPS IN BRAZIL

B) AVAILABILITY IN BRAZIL A) STRUCTURE:

1 - mature 2 - established 3 - incipient

Sub-sector

Technology / Service / Process

Machine efficienMachinery cy

Environmental and land adequacy

Environmental and land policies

D) INTERNATIONAL TRENDS 1 - high C) SECTOR F) BUSINESS POTENTIAL FOR THE / INNOVATIVE 2 - medium SEGMENTATION LCBA TECHNOLOGIES in EU 3 - low/not required/long-term

H) MARKET G) GEOGRAPHIC ASSESSMENT: MARKET POTENTIAL SEGMENTATION STAKEHOLDERS / SUPPLIERS

4 - not available

Provide new technologies that would benefit the harvest and the soil management. It is an open door to IT professionals, agricultural engineers and agronomist

1

Industry; service; IT

2

Support to the rural sector for suit with environmental legislation, especially Brazilian law no. 12.651 (Forest Code), aimed at the recovery of environmental liabilities in areas of Public Policies; permanent preservation and environmental legal reserve (the restoration of legislation; Softthese areas entails carbon sink ware systems and on the farm). Support for the services; certificaland use mapping to contribute tions; capacitation for the land policies. Support for the country to achieve emissions reduction targets (as defined in climate agreements). Support for obtaining certifications

Low-carbon Business Action in Brazil (Project funded by the European Union)

2

Potential: provide new technologies that would benefit the harvest and the soil management. It is an open door to IT professionals, agricultural engineers and agronomists Whole country Barriers: lack of professionals to supply the demand; farming systems in Brazil are highly heterogeneous in size, input, modernization and income

Machinery Industry; engineering/manufacturer companies; farms; private sector; IT professionals

1

Potential: opportunity for consulting companies with experience in publicprivate partnerships to compliance environmental and land legislation; opportunity for legal advice for farmers; Whole country opportunity for certifying companies. Barriers: language; qualified professionals; bureaucracy; corruption; Juridical insecurity; weak law enforcement

Farms; municipal, state and federal government; Consulting companies; private sector; certifying companies

- 69 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

Annex B – Expression of Interest questions for Brazilian companies 1. 2. 3. 4.

Precision agriculture: management of the agriculture property Technical assistance: capacitation and training in low-carbon technologies Low-carbon consultancy and agro-environmental consultancy Monitoring of GHG emissions avoided and carbon stored in the soil: GHG emission inventories

5. 6.

Plant nutrition: fertilizer Biological nitrogen fixation: development and production of new inoculants

7. 8. 9.

Animal nutrition: animal diet Soil conservation: technologies for reforestation and fire detection Companies. associations and farms linked to meat supply chain: livestock farms; technologies for recovery pastures and integration crop livestock forest 10. Companies, associations and farms linked to food production (crop farms, mainly grains): technologies for No Tillage system 11. Biotechnology: artificial insemination and genetic enhancement (animal) and genetic improving of plants 12. Agricultural productivity monitoring: satellite images and modeling and software tools 13. Planting forests (native and exotic species): innovation in vitro reproduction systems, cultivation and maintenance of native and exotic species of large scale 14. Animal waste treatment: manufacturing bio digester 15. Biofuels: ethanol and biogas 16. Machinery Industry 17. Geotechnologies: remote sensing and geoprocessing for land use change mapping

Low-carbon Business Action in Brazil (Project funded by the European Union)

- 70 -

Mapping Report – Part 8 – Agriculture Sector in Brazil

Annex C – Expression of Interest questions for EU suppliers 1- Precision agriculture: modeling and software tools 2- Technical assistance: monitoring tool for sustainable agriculture 3- Low-carbon consultancy and agro-environmental consultancy: Technology of GHG emission inventories and monitoring tool for sustainable agriculture 4- Monitoring of GHG emissions avoided and carbon stored in the soil: tools for monitoring GHG emissions; training and execution to collect soil samples and carbon stock determination in laboratory and development of emission and removal factors 5- Plant nutrition: monitoring tool to restore the soil damaged by monocultures and to adapt it to new crops during the off season; tools and technologies aimed at efficient management of rural property, especially for efficient use of inputs (fertilizers and pesticides) 6- Biological nitrogen fixation: develop biological nitrogen fixation in new agricultural species and development and production of new inoculants 7- Animal nutrition: development and production of food for the herd that cause less emission by enteric fermentation 8- Soil conservation: reforestation techniques; technologies of production of seedlings of forest species; determination of data derived of the vegetation index (presence of straw and crop residues) related with weather data (temperature and humidity) for fire risk 9- Companies. associations and farms linked to meat supply chain: tools and techniques of implementation and monitoring for sustainable agriculture; degraded pasturelands surveillance; efficient use of inputs and machinery for the pasture recovery areas; forage seed production 10- Companies, associations and farms linked to food production (crop farms, mainly grains): tool and techniques of implementation and monitoring for sustainable agriculture and efficient use of inputs and machinery for soil conservation 11- Biotechnology: artificial insemination and genetic enhancement by transfer of FTET procedures (fixed-timed embryo transfer) and TAI (artificial insemination to fixed time); and genetic improving of plants by development of more productive varieties, more resistant to climatic stresses and efficient use of inputs 12- Agricultural productivity monitoring: productivity estimate of main agricultural crops, including fodder, based on agro-meteorological local, regional and national models; monitoring of the vegetative cycle based on vegetation index images. 13- Planting forests: development of more effective techniques of obtaining and producing seeds and seedlings, manipulation of the land, planting, pest control, fertilization, harvesting and transport and in vitro reproduction systems 14- Animal waste treatment: technologies and equipment for treatment of animal waste, mainly swine (manufacturing bio digester) 15- Biofuels: ethanol - software systems, services and research and development for harvested areas surveillance; monitoring of emissions avoided; agricultural productivity monitoring; international market; biogas - Potential for companies offering increased biogas generation (new technologies, optimized design, better practices, etc.) 16- Machinery Industry: provide new technologies that would benefit the harvest and the soil management. Opportunity for IT professionals, agricultural engineers and agronomist 17- Geotechnologies: companies providing satellite imagery and GIS software, monitoring tool and software for land use and remote sensing

Low-carbon Business Action in Brazil (Project funded by the European Union)

- 71 -

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