Oct 07, 2010
Agriculture Accounts for 25% of Brazil's Grosso Domestic Product
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to the Brazilian Institute of Geography and Statistics (IBGE), in 2009, the agricultural sector in Brazil accounted for 25% of the country's Gross Domestic Product as well as one third of the jobs and 42% of Brazil's exports.
In the last agricultural census conducted in 2006, there were 5.2 million rural properties in Brazil and most were considered small family farms. On these properties, 51% of the activity involved crop production, 44% involved cattle ranching, 4% involved forestry, and 0.5% involved fishing.
Agricultural exports in 2009 were valued at US$ 64.7 with the top three agricultural exports being soybeans, meats, and sugar. Brazil has the largest cattle herd in the world; but trade barriers in other countries have frustrated attempts to increase Brazil's meat exports.
Brazil is self sufficient in nearly all its food products with wheat being the notable exception. Fifty percent of the wheat consumed in Brazil is imported with nearly all of it coming from Argentina.
A big concern for the agricultural sector is the country's heavy dependence on imported fertilizers. Nearly 60% of the fertilizers consumed in Brazil are imported and the price volatility in recent years has convinced government officials that Brazil needed to be self sufficient in fertilizer production as well. As a result, the country has embarked on an ambitious program to become self sufficient in fertilizer production within a decade.