Sistemas Agroindustrias de Produção e Inovação no Brasil: Grãos e Cana de Açúcar Agribusiness Sector Systems of Production and Innovaton in Brazil: Sugar and Grains Maria da Graça Derengowski Fonseca INSTITUTO DE ECONOMIA- UFRJ e INFOSUCRO-NUCA/IEUFRJ José Maria Jardim da Silveira INSTITUTO DE ECONOMIA- NEA/ UNICAMP Equipe de Pesquisa do INFOSUCRO Charles Menard (economista senior e consultor Infosucro-NUCA/ IE- UFRJ) Francisco José Peixoto Rosário (doutorando IE – UFRJ e professor da ESAMC-Alagoas) Rômulo Neves Ely ( estagiário e mestrando COPPE-UFRJ) GRAINS and SOY Participation of Soy and Poultry on the Brazilian Exports ( 1999 a 2004) 5,0 5,9 5,7 5,0 4,0 (%) 3,0 4,7 3,8 4,0 4,5 3,9 3,3 3,1 2,6 1,8 2,2 2,2 2,3 2002 2003 1,5 1,0 1999 2000 2001 Anos 2004 years Soja na exportação da economia brasileira Exports of Soy on Total Exports Carne deExports frangoofna exportação economia brasileira Poultry on Totalda Exports Parcela de mercado das exportações Brasil na exportação agrícola mundial Brazilian Agribusiness Share of agrícolas Market ondo Total Exports FAO e MIDIC/ SECEX Participation of Soy and Poultrys Exports on the Brazilian Agribusiness Exports (1999 a 2004) 80 69,2 60 (%) 71,6 58,3 76,5 73,3 41,5 40 17,1 18,1 17,0 20,5 19,8 20 0 11,5 6,3 1999 6,3 2000 8,0 2001 Anos years 8,0 2002 8,2 2003 of Soy on Exportsde of grãos Grains SojaExports na exportação brasileira of Soy on Agribusiness Exports SojaExports na exportação agrícola do Brasil Exports of Poultry on Agribusiness Exports Carne de f rango na exportação agrícola do Brasil Fonte: FAO e MIDIC/ SECEX 9,2 2004 Soy, Poultry, Beef -Participation on the Total Exports of Agribusiness Products in Brazil (1999 a 2004) 25% 20% 15% 10% 5% 0% 1999 2000 soja soy 2001 carne de frango poultry 2002 2003 2004 carne beebovina f Source FAO e MIDIC/ SECEX The Importance of Grain Crops in Brazilian Agriculture, selected years Total Area Grains Others Area Hectares Share of total harvested area (%) Area Hectares Share of total harvested area (%) years Hectares 1990 50,514,696 39,722,379 0.79 10,792,317 0.21 1995 50,761,717 39,694,779 0.78 11,081,938 0.22 2000 50,197,382 38,802,850 0.77 11,394,532 0.23 2005 62,639,616 49,822,380 0.80 12,817,236 0.21 Source: IBGE,2006 Grain Production and Harvested Area, 1990-2005 140,00 Produçtion (106 hec) 120,00 Harvested area (106 hec) 100,00 80,00 60,00 40,00 20,00 0,00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Agrianual (2006) RR AP AM AC PA MA P I TO RO MT 90´s CE RN PB PE AL SE Crops by Main Regions BA 80´s GO 54,4 46,6 MG MS 70´s SP 60´s 50´s ES 31,2 RJ PR SC RS 43,6 8,9 2,6 3,2 2,4 Norte 23,5 19,2 19,4 17,7 16,4 4,3 6,5 Nordeste Sudeste 1990 1996 Sul 2002 Centro Oeste Partial Productivity by Region and Selected Years (ton/hectares) Region 1995 1999 2003 Coffee Beans Corn Soybean Wheat North 1,25 0,46 1,56 1,81 - Northeast 0,86 0,31 0,80 2,21 - Southeast 0,99 0,78 2,85 2,11 1,99 South 0,55 0,89 3,03 2,21 1,55 Central-West 1,11 0,80 3,44 2,21 0,95 Brazil 0,99 0,54 2,49 2,20 1,54 North 1,15 0,61 1,52 2,45 - Northeast 1,00 0,41 1,02 2,11 - Southeast 1,50 0,99 3,07 2,52 2,55 South 2,15 0,87 3,16 2,10 1,95 Central-West 1,37 1,27 3,67 2,71 1,59 Brazil 1,48 0,69 2,76 2,38 1,95 North 0,69 0,70 1,67 2,41 - Northeast 0,55 0,45 0,94 1,88 - Southeast 1,14 1,20 3,82 2,71 2,07 South 0,96 1,10 3,47 2,28 1,43 Central-West 0,92 1,76 3,77 2,94 1,20 Brazil 1,05 0,81 3,01 2,57 1,43 Brazil: Total Sales of Fertilizers and Grain Production (1990-2005)- mil ton 25000 150 20000 15000 100 10000 5000 50 0 0 90 92 94 96 GR AIN Source: MAPA (www.mapa.gov.br) 98 00 FER T 02 04 Soy in Brazilian States – Farm and Industrial Capability in 2005 Brazilian States Farm Production % (1000 ton year) Industrial Production % (ton/ per day) Paraná 9.386 17,6 32.115 23,4 Rio Grande do Sul 7.519 14,1 21.200 15,5 15.877 29,7 21.000 15,3 Goiás 6.985 13,1 18.500 13,2 São Paulo 1.569 2,9 15.600 11,4 Mato Grosso do Sul 4.376 8,2 8.295 6,1 Minas Gerais 2.483 4,6 6.600 4,8 Bahia 1.991 3,7 5.344 3,9 Santa Catarina 815 1,5 4.034 2,9 Piauí 545 1,0 2.360 1,7 51.545 1,0 135.048 1,0 1.869 0,0 2.050 0,0 Brasil 53.414 100,0 Source:Abiove e Soybean Yearbook , 2006 137.098 100,0 Mato Grosso Sub-total Outros Forecast of Brazilian Deficit of Storage Capacity for Grain Exports SYSTEM OF INNOVATIONS • Competitiveness in the Production of grain seeds in Brazil is based on innovation and partnership among the SNDA/EMBRAPA and private companies • The launch Property Laws (Lei de Proteção aos Cultivares-9456 Law) helped to develop efficiency in grain seeds crops maintaining the importance of the R&D Systems (EMBRAPA and SNDA) The EMBRAPA and SNPA Research System Itens EMBRAPA SNPA 6 22 781 1.200 Number of Researchers Pesquisadores 2.206 2.100 Número TotalEmployees de empregados Total 8.619 8.100 480 1.100 National Research Programs Programas Nacionais de Pesquisa Projetos em Andamento Number of Projects Orçamento (US$ milhões, valores de 2005) Budget US$ Million,2005 SNPA/ EMBRAPA-Sistema Nacional de Pesquisa Agropécuária Property Rights in seeds: R&D licencences in the SNPC (1996-2005) companies Or melhramento Bretagne-P IAPAR (13) Fundação Mato Grosso (14) Empresas Naturalle Agromercantil (16) UFV (18) FECOTRIGO (20) COPERSUCAR (29) COODETEC (46) MONSOY (81) Outros 68 ( <11 cultivares) Embrapa (219) 0 50 100 150 Cultivares Source Teixeira (2006) 200 250 Seed and Crop Yelds- Participation of EMBRAPA on Value of Production and Economic Benefit (2002/2003) Produto Embrapa Seeds and Crops (%) Value of Production EMBRAPA- 2002/2003crops (R$ Million) * EMBRAPA Benefit (R$ Million) * Cotton 53,3 1.753,8 924,5 Water rice 37,8 1.114,1 253,2 Dry Rice 43,2 1.441,0 405,1 Beans 53,6 2.268,2 1.641,1 Corn 8,0 840.0 425,9 Soy 39,0 9.932,7 997,0 Wheat 28,5 583,1 295,4 n.s.a. 17.932,4 4.943,4 total Fonte: Teixeira, 2006. EMBRAPA and Innovation • The importance of EMBRAPA e other governmental centers is related to their efficiency on biotechnology innovations grain and other crops, with exception of corn EMBRAPA: Funding Innovation Activities using Royalties e Partnership Contracts (2001/06) 25000 20532 20000 15000 11993 13499 8991 10000 5617 5000 3117 225 651 270 1200 463 1500 351 1264 309 1211 451 0 2001 2002 2003 Licenciamento de Cultivares (1.000 ton.) 2004 2005 2006 Arrecadação de royalties (R$ 1.000) Número de Contratos Licences (1.000 ton) Source: Teixeira, 2006 Royalties (R$ 1.000) Number of Contracts The Sugar and Alcohol SSPI Sugar and Alcohol Institutional History in Brazil 1937: Instituto de Açúcar e Alcohol (IAA) was created to coordinate production defining rules and norms of production and comertialization to the private agents 1971: Planalsucar: R&D agency belonging to IAA 1970/1971 Centro de Tecnologia da Copersucar (CTCOPER) into COPERSUCAR First Oil Crisis-1974/75 Proalcool is created in 1975 – national security perspective Second Oil Crisis and Economic Debt Crisis in Brazil in the end of the 70´s/ beginning of the 80´s Impossibility to sustain governmental programs End of Proálcool in 1990 Evolution of Sugar Cane and Ethanol Production and Facts Source: UNICA- Quoted from Delgado,V.,BNDES(2007) Source: Unica Brazilian Exports of Sugar and Alcohol in US$ FOB FIGURA 17- Evolução das Exportações de Açúcar e Álcool no Brasil Sugar 1.000 US$1.000 FOBUS$ FOB Alcohol 1.000.000 US$ FOB Source Fonte: MDIC/ AliceWeb, 2007 Brazilian Exports of Sugar and Alcohol by Countries BRICS BRICS Brics Brazilian Exports of Sugar by Destiny US,UE and Brazil Ethanol Production(2006) US Brazil Source www.ebio.org (06/2006)- Quoted from Delgado,BNDES(2007) UE Biggest Producers of Ethanol * (10 countries:89% of global production) Brazil and US: 70% of Production Millions of GAL per year Source:RFA (F.O.Licht) * All degrees of ethanol Sugar and Alcohol Production in Production (1970/1971-2003/2004) 18.000 30.000 12.000 10.000 25.000 20.000 15.000 8.000 6.000 4.000 2.000 70 /7 1 73 /7 4 76 /7 7 79 /8 0 82 /8 3 85 /8 6 88 /8 9 91 /9 2 94 /9 5 97 /9 8 00 /0 1 03 /0 4 Álcool (mil m3) 14.000 Source : Infosucro 10.000 5.000 - Açúcar (milhões/tons) 16.000 Álcool Açúcar Potential Production for Sugar Cane Agriculture Source:IG-UNICAMP- CGEE BRAZIL-Sugar Cane Mills and Alcohol Production Plants Produtores de Açúcar e álcool ( Usinas e destilarias) SUGAR AND ALCOHOL PLANTS 400 316 300 250 Usinas Sugar de açúcar Alcohol Produtores de álcool 200 Total = açúcar + álcool 150 130 100 50 20 03 20 01 19 99 19 97 19 95 19 93 19 90 186 19 88 19 86 unidades fabris 350 Source: IBGE/PIA Concentration Rates of Sugar Cane Industrial Plant Producers Production in Brazil (2002/2006) E V OLU Ç Ã O D OS Í N D I C E S D E C ON C E N T R A Ç Ã O 50% 45% 44% 42% 43% 27% 29% 15% 16% 43% 43% 43% 29% 29% 41% 40% 35% 30% 30% 29% 27% 25% 20% 18% 16% 15% 14% 15% 14% 10% 2006/ 2005 2005/ 2004 2004/ 2003 Cr (4) 2003/ 2002 Cr (10) 2002/ 2001 2001/ 2000 2000/ 1999 Cr (20) Source: Fonseca and Menard, INFOSUCRO IE-UFRJ Sugar Cane Diversification Sugar,Alcohol and Eletricity Co-Generation consume in TEP* Consumo de açúcar, álcool e energia elétrica (cogeração), em TEP 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 1970 1975 1980 1985 ÁLCOOL 1990 AÇÚCAR 1995 COGERAÇÃO Source of Data: BEN-EPE quoted by Ely,R.N. - INFOSUCRO 9 *TEP: 10x10 cal (joules) 2000 2005 Ethanol Production Costs (US$/galon) US White Sugar UE Beet US Cane US Beet US corn Brazil Sugar-cane Source:USDA Productivity Gains Center-South Region Gal ethanol/hectare tcane/hectare 85,00 1.750,0 tcane/hectare 75,00 1.550,0 70,00 1.350,0 65,00 60,00 1.150,0 55,00 50,00 950,0 45,00 40,00 750,0 75 Source: UNICA 80 90 00 04 gal ethanol/hectare 80,00 Productivity and Agribusiness Yields 160,00 150,00 140,00 130,00 120,00 110,00 100,00 90,00 80,00 70,00 60,00 50,00 Ton cane/hectare Tonelada de cana por hectare *kg ART/ton sugar cane Source: INFOSUCRO Industrial Yelds* Rendimento industrial - Kg ART / Ton de cana 04 /0 5 02 /0 3 00 /0 1 98 /9 9 96 /9 7 94 /9 5 92 /9 3 90 /9 1 88 /8 9 86 /8 7 84 /8 5 82 /8 3 80 /8 1 78 /7 9 76 /7 7 74 /7 5 72 /7 3 70 /7 1 40,00 SELLING CARS IN BRAZIL ACCORDIND THE TYPE OF FUELS Vendas Autoveículos Nacionais por Tipo de Combustível - Unidade 1800 1600 1400 1200 1000 800 600 400 200 0 1975 1977 1979 1981 1983 1985 1987 1989 GASOLINA 1991 1993 ÁLCOOL 1995 FLEX 1997 1999 2001 2003 2005 Innovation in Sugar Cane Production Sugarcane crops in Brazil/Innovation Protection from pests and diseases is a strength of Brazil’s production: it is based on a continued supply of resistant sugar-cane varieties and not much on phytosanitary barriers ( natural traps) The sugar-cane genetic improvement programs in Brazil released 51 varieties over the past ten years; the most used variety occupies just 12.6 percent of the area. Brazil has (non-commercial) transgenic varieties since the 1990’s. Next Step Innovations Next 10 – 20 years much more efficient use of sugar cane biomass will increase significantly the range of products and their value – Some technologies in advanced development stage (worldwide) are key for this transformation: the hydrolysis of biomass (bagasse and trash) as well as many different fermentation technologies; and the biomass gasification, leading to power or fuel synthesis. – Sugar cane appears an ideal feedstock for future “bio-refineries”, for its relatively low cost, large availability and an interesting mix of 1/3 sucrose & 2/3 pre-processed ligno-cellulosic material. R&D Institutional Structure PRIVATE • CTC- Centro de Tecnologia Canavieiro (old CT-COP from Coopersucar created in 1970) incremental innovations and development of new varieties of sugar cane (genetic improvements) GOVERNMENTAL • APTA: Agência Paulista de Tecnologia do Agro-negócio da Secretaria de Agricultura de SÃO PAULO • Instituto Agronômico de Campinas, IB ans IEA (SP) • Planalsucar (Araras-SP) belongs now to the Universidade Federal de São Carlos • EMBRAPA UNIVERSITIES - UNICAMP- CBMEG - SÃO CARLOS- Departamento de Biologia Vegetal Programa de Melhoramento Genético da Cana e Departamento de Recursos Naturais e Proteção Ambiental - FEALQ- Piracicaba - Universidade Federal Rural de Alagoas - Centro de CARPINA em Pernambuco CTC Second Generation Varieties CTC 6 CTC 7 Destaca-se pela alta produtividade, com alta resistência às principais doenças sendo recomendada para colheita do meio para o final da safra, em ambientes de boa a média produção. Apresenta fibra baixa, pouco florescimento Destaca-se pela precocidade, com alto teor de sacarose e resistência às principais doenças, sendo recomendada para colheita no início da safra, em ambientes de alta a média produção. Apresenta fibra média, pouco florescimento CTC 8 CTC 9 Destaca-se pela ótima brotação de soqueira e porte ereto, sendo recomendada para colheita do meio para o final da safra, em ambientes de média produção. Apresenta fibra alta, pouco florescimento e pouca isoporização. Destaca-se pelo alto teor de sacarose e precocidade, sendo recomendada para colheita no início da safra, em ambientes de média a baixa produção. Apresenta fibra média, pouco florescimento e pouca isoporização. Biotecnology and Sucar Cane Sugar Cane Project UNICAMPCBMEG Other Projects X. citri X. campestris Fonte: Fapesp/ Embrapa Xylella strains Leifsonia Leptospira Eucalyptus Human pathogens Bovine Coffee start-ups Genetic and genomics innovations related to the development of agribusiness products: soya, citrus,grapes, eucaliptus and sugar-cane UNICAMP Objetivo: bio-informátics projects UNICAMP Genetics and genomics to develop new sugar cane varities São Carlos Thank you! Brazilian Exports of Sugar by Destiny Other West of Asia Africa East of Asia UE US BRICS Source: MDIC- AliceWeb-INFOSUCRO (2007) Brazilian Exports of Alcohol by Destiny * Other Central America West of Asia Africa Japan UE US BRICS T Source: MDIC- AliceWeb-INFOSUCRO (2007)