Brasília – Brazilian agriculture remained a highlight and conquered new markets during the eight years of president Luiz Inácio Lula da Silva’s term in office. Aside from becoming established as one of the top exporters of important products such as beef, coffee, sugar and soy, and being called the "breadbasket of the world" by specialists, the country claimed the title, awarded by several nations, of leader in the discussion and implementation of "green fuels" such as biodiesel and ethanol.
Over the last eight years, grain production grew by 21%, having gone from 123.1 million tonnes, in the 2002/2003 crop, to 149 million tonnes in the 2009/2010 crop. The planted area for grain grew at a lower rate, 17.5%, having gone from 40 million to 47 million hectares, proof of increased productivity. Agribusiness exports, which reached US$ 30.6 billion in 2003, totalled US$ 71.84 billion in 2008 and, after the world crisis, which led sales to drop to US$ 64.78 billion in 2009, was overcome, a new record should be set this year at around US$ 75 billion, according to government estimates.
The Brazilian Agricultural Research Corporation (Embrapa) – armed with various technologies, from drought-resistant bean to biofuels, including the mapping out of the genetic code for cattle and operating in the African continent as well – had more funds available due to the government’s Growth Acceleration Program and is one of the best known domestic institutions in foreign countries, especially by governments.
Counting on 4.2 million properties, family farming played an important role in the growth of the sector. The volume of credit made available to these farmers has gone from 4.5 billion reals (US$ 2.6 billion), as of the 2003/2004 crop, to 16 billion reals (US$ 9.5 billion) in the 2010/2011 crop. Nearly all credit contracts for family farming are now insured against sharp price declines or adverse weather, providing a reference to entrepreneurial agriculture, still unable to implement a policy to that end.
In spite of the good results, the agricultural sector faced a serious crisis during the period whose reflections are felt until this day, mainly due to exchange rate fluctuation. Farmers planted the 2004/2005 crop at high dollar-pegged costs (at that time, one dollar was equivalent to 3.10 real) whereas sales took place at low prices due to an unfavourable exchange rate (one dollar for 2.60 real). In the 2005/2006 crop, the same problem occurred, as the dollar was equivalent to 2.50 real at the time of planting, and to 2.06 to 2.20 at the time of selling.
*Translated by Gabriel Pomerancblum
