August 5, 2020

Brazil's livestock sector forecast to grow amid COVID-19

Apex-Brasil (the Brazilian Trade and Investment Promotion Agency), together with its partners from the private sector, shared this week critical insights outlining the country's upward trajectory in agriculture and livestock production, despite challenges resulting from the COVID-19 pandemic.

A series of seven factsheets highlights Brazil's continued advancements in agricultural technology, productivity and safety, which have positioned the country to effectively manage through the current crisis and prepare for a post-pandemic future.

According to IPEA (the Ministry of Economy's Institute of Applied Economic Analysis), Brazil's agricultural sector is estimated to grow by 2.5% this year, with some private sector analysts estimating it could reach as high as 3%.

"For more than 40 years, Brazil has worked to establish itself as one of the main global players in farming and sustainability," said Sergio Segovia, president of Apex-Brasil. "Through longstanding investments in both small and large-scale agricultural innovation, we've been able to tap into the entrepreneurial spirit of Brazilian farmers across the country, recording significant productivity gains while ensuring quality of our crops and livestock. As you'll see from Apex-Brasil's newly released factsheets, our evolution in the agricultural sector is just beginning. I'm confident that our leadership in this area will continue to flourish in years to come."

The following key statistics from the factsheets highlight the storied history of Brazil's agricultural successes, as well as set the stage for the country's international market growth both now and in the future:

Leveraging scientific innovation to increase agricultural yields

Brazil's focus on pioneering scientific innovation in soil chemistry, crop management and more have been decisive for its agriculture and livestock growth. For example, when compared to harvests from 1976/77, Brazil's grain production increased by 414% in 2018/19, with total productivity increasing by 205%.

Innovation in biotechnology and nutrition has made it possible for Brazilian farmers to promote greater weight gain in chickens in a proportionally smaller amount of time.

Prioritising food safety to become a trusted international partner

Brazil continues to be a leader in livestock safety, with more than 180 countries trusting Brazilian livestock products for export. By implementing a comprehensive sanitary inspection processes, including laboratory examinations of animal products, veterinary auditing visits and the surveillance of all exported plants, Brazil has been free of several OIE-monitored diseases, reinforcing its commitment to providing the highest-quality meat for export and domestic consumption.

Since 1992, Brazil has eradicated cattle-borne foot-and-mouth disease (FMD) in the country. Through its National Program to Eradicate Foot-and-mouth Disease, the country has progressively maintained disease-free zones in an effort to ensure international trust in Brazilian meat exports.

Increasing productivity by maximising the efficiency of existing resources

Brazil currently accounts for 8% of world exports for agricultural products. Looking to the future, however, Brazil's agricultural and livestock productivity is estimated to grow at rates well above the world's average.

To ensure efficiency across the country's 64 million hectares of arableland, about28% of all agricultural areas planted with grains and pulses in Brazil are used for a second harvest each year, helping in the country's overall productivity. For example, in 2020, the IBGE (the Brazilian Institute of Geography and Statistics) estimates that the second harvest will produce 70 million tonnes of corn, compared to 26.6 million tonnes produced in the first harvest.

•By integrating pork and poultry supply chains, Brazil has been able to produce 25.5 million tonnes of beef, pork and chicken over the last year alone. In fact, it is estimated that integration strategies have reduced the amount of capital investment required of Brazilian farmers by 7.2%, contributing to overall productivity gains.