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Climate Change and Food Security:
             Brazil
             Elisio Contini & Geraldo B. Martha, Jr.




 International Conference on Climate Change and Food Security, 6-8 Nov 2011, CAAS/IFPRI, Beijing, China
Outline



• Recent agricultural development;

• Potential impact of climate change on agricultural
  production;

• Some policies alternatives to mitigate carbon
  emissions;
Evolution of Agriculture in Brazil




  RECENT AGRICULTURAL
     DEVELOPMENT
Overview

                                     Brazilian Ag before the 1970’s
                                   Low Ag production and low yields;

                                   Production concentrated in South/Southeast;

MAPA (2010).                       Food supply crisis;

                                   Rural poverty;

                                   Lack of specific knowledge on Tropical
                                   Agriculture;

                                   Institutional void (ag research, education,
                                   markets, media governmental agencies, etc.).
M.Lopes (2011).




     The task: to move from trad. ag to one based on science & technology
TFP in Brazilian Agriculture, 1970 - 2006


           Brazil                       1970      1975   1980   1985   1996   2006

Product index                            100      139    173    211    244    343

Input index                              100      122    142    149    137    153

TFP                                      100      114    122    142    178    224

Land
                                         100      135    162    196    230    324
productivity

Labor
                                         100      129    158    185    241    348
productivity
Source: Gasques, Bastos, Bacchi, Valdes (2010).
Production (million tons) and
                                         area (million ha)




                                    20.00
                                                    40.00
                                                               60.00
                                                                         80.00




                             0.00
                                                                                 100.00
                                                                                          120.00
                                                                                                      140.00
                                                                                                               160.00




Source: after Conab.
                       1976/77
                       1977/78




                                                            1,258



                                            37.32
                       1978/79
                       1979/80
                                                                                                                             Variation, 1976/77 to 2010/11




                       1980/81
                       1981/82
                       1982/83
                       1983/84
                       1984/85
                       1985/86
                       1986/87
                       1987/88
                                                                                                                              + 240%




                       1988/89
                       1989/90
                       1990/91
                                                                                                                                                             Production (million tons)




                       1991/92
                       1992/93
                       1993/94
                       1994/95
                       1995/96
                                                                                                                              + 32%




                       1996/97
                       1997/98
                       1998/99
                       1999/00
                                                                                                                                                             Area (million ha)




                       2000/01
                       2001/02
                       2002/03
                       2003/04
                       2004/05
                                                                                                                              + 157%




                       2005/06
                       2006/07
                                                                                                                                                             Yield (kg/ha)




                       2007/08
                       2008/09
                       2009/10
                       2010/11
                                                             49.25
                                                                                                   3,239
                                                                                                                    159.51




                             0
                                    500
                                                    1,000
                                                               1,500
                                                                         2,000
                                                                                 2,500
                                                                                          3,000
                                                                                                      3,500
                                                                                                               4,000




                                                                       Yield (kg/ha)
                                                                                                                                                                                         Grains and Oilseed Production, Area and Yield (1976 – 2011)
Factors of Growth in Beef Production (1950 – 2006)


                                                  Beef Production              3.36%



                              Pasture Area              X           Animal Productivity


                                      ~ 21%                                 ~ 79%


                                                              Animal 
                                                            performance      X      Stocking rates

                      Land‐saving effect: 
                          525 M ha
                                                                ~ 38%                     ~ 62%

G.B. Martha Jr., E.Alves, E.Contini (2011).
Area with Human Activities (Probio, 2007)

                             90% of the Amazon Biome and 
                              61 % of the Cerrado Biome is 
                               still covered by the original 
                                        vegetation !




                                                     Natural Cerrado

                                                     Water body

                                                     Crops

                                                     Cultivated 
                                                     pastures

                                                     Urban areas

                                                     Reforestation




   Sano et al., Pesq. Agrop. Bras., v.43, 153-156,
                                             2008
Brazilian Agriculture: Some Projections (2010/2019)

                                     42%
                                                                                                                 37.5%

                                     35%
            Growth in agricultural
               production (%)


                                                                                                       27.5%
                                     28%                                                      26.6%

                                                                                      23.0%
                                                                              21.4%
                                     21%


                                     14%
                                                  10.7%            11.0%
                                                           9.5%

                                     7%
                                           4.2%


                                     0%
                                           UE27   Canadá   EUA    Austrália   Índia   China   Rússia   Ucrânia   Brasil


OECD/FAO (2010).
Evolution of Agriculture in Brazil




POTENCIAL IMPACT OF CLIMATE
 CHANGE ON AGRICULTURAL
       PRODUCTION
Projected Temperatures




Pinto & Assad (2008).
Variation (%) in Potential Cropland




Pinto & Assad (2008).
Simulation with IFPRI´s Impact Model – Soybean Area




 Source: IFPRI (2011), unpublished.
Simulation with IFPRI´s Impact Model – Soybean
                                                   Production




Source: IFPRI (2011), unpublished.
Simulation with IFPRI´s Impact Model – Soybean Yield




 Source: IFPRI (2011), unpublished.
Simulation with IFPRI´s Impact Model – Soybean Net Trade




     Source: IFPRI (2011), unpublished.
Potential Impacts of Climate Change in Brazilian Economy




                                   A2 - Scenario             B2 - Scenario



 Agriculture
 Industry
 Services
 GDP
Source: Haddad et al. (2010).
Evolution of Agriculture in Brazil




SOME POLICIES ALTERNATIVES TO
  MITIGATE CARBON EMISSIONS
Brazilian Climate Change Law
Projected GHG Emissions in Brazil in 2020

            3.500
                                 Energy            Agriculture   Land-use   Industry+Residues

            3.000
                        1515                   2187               92
                                                                 2704       1728                1652
            2.500
                                                    114                      36%                 39%


            2.000                                                1.084
M t CO2-e




                                                                              84                82
                            86
            1.500                                                            415
                                                   1.329                                        415
                                                                 627
            1.000          883                                               494                461

             500                                   416           901
                           329                                               735                694
                           217                     329
               0
                          1994                     2005          2020       2020(I)        2020(II)

  Data from MCT (2011), G.B. Martha elaboration.
Mitigation and Adaptation Technologies


                       Mitigation
• potential to mitigate emissions;
• associated benefits that increase agricultural yield and 
resilience;

                       Adaptation
 • high‐priority to mitigate actions that have strong 
 adaptation benefits;
ABC Program

                Action                    Total area     Projected GHG emission                  Total cost
                                           (M ha)       reduction (M t CO2‐e/yr.)               (R$ billion)

  No‐till planting                            8                  16 a 20                             2,40

  Biological N fixation                      5,5                 16 a 20                             0,30

  Recovery of degraded pastures              15                  83 a 104                           19,65

  Integrated crop‐livestock systems           4                  18 a 22                            34,20


Agricultural and Livestock Plan 2011/2012 (ABC Program)
• Available resources R$ 3.15 billion;
• Limit: up to R$ 1 million per farmer;

• Threshold for a period up to 8 years; deadline for paying for a period up to 15 years;

• Interest rate 5.5% per year;
                                                                        Source: Brazilian Ministry of Agriculture,
                                                                        Livestock and Food Supply (MAPA).
Integrated Crop-Livestock Systems Alternatives

May   Jun   Jul   Aug   Sept   Oct   Nov   Dec   Jan   Feb   Mar   Apr
Adaptation of Crop Varieties




                                             2005
                    1975

1960
       Evolution and expansion of soybean in Brazil
Concluding Remarks

• The experience of Brazil’s agricultural transformation is proof that it
is possible to have an efficient and competitive agriculture in the
tropics;

• The development of Brazilian agricultural was predominantly based
on productivity gains;

• There are clear opportunities to expand food, biofuels and fiber
production in a sustainable way in Brazil. Intensifying pastoral
systems will be of central importance;

• Projected effects of climate change in Brazil are still uncertain.

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Elisio Contini — Brazil's Food Security and Climate Change

  • 1. Climate Change and Food Security: Brazil Elisio Contini & Geraldo B. Martha, Jr. International Conference on Climate Change and Food Security, 6-8 Nov 2011, CAAS/IFPRI, Beijing, China
  • 2. Outline • Recent agricultural development; • Potential impact of climate change on agricultural production; • Some policies alternatives to mitigate carbon emissions;
  • 3. Evolution of Agriculture in Brazil RECENT AGRICULTURAL DEVELOPMENT
  • 4. Overview Brazilian Ag before the 1970’s Low Ag production and low yields; Production concentrated in South/Southeast; MAPA (2010). Food supply crisis; Rural poverty; Lack of specific knowledge on Tropical Agriculture; Institutional void (ag research, education, markets, media governmental agencies, etc.). M.Lopes (2011). The task: to move from trad. ag to one based on science & technology
  • 5. TFP in Brazilian Agriculture, 1970 - 2006 Brazil 1970 1975 1980 1985 1996 2006 Product index 100 139 173 211 244 343 Input index 100 122 142 149 137 153 TFP 100 114 122 142 178 224 Land 100 135 162 196 230 324 productivity Labor 100 129 158 185 241 348 productivity Source: Gasques, Bastos, Bacchi, Valdes (2010).
  • 6. Production (million tons) and area (million ha) 20.00 40.00 60.00 80.00 0.00 100.00 120.00 140.00 160.00 Source: after Conab. 1976/77 1977/78 1,258 37.32 1978/79 1979/80 Variation, 1976/77 to 2010/11 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 + 240% 1988/89 1989/90 1990/91 Production (million tons) 1991/92 1992/93 1993/94 1994/95 1995/96 + 32% 1996/97 1997/98 1998/99 1999/00 Area (million ha) 2000/01 2001/02 2002/03 2003/04 2004/05 + 157% 2005/06 2006/07 Yield (kg/ha) 2007/08 2008/09 2009/10 2010/11 49.25 3,239 159.51 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Yield (kg/ha) Grains and Oilseed Production, Area and Yield (1976 – 2011)
  • 7. Factors of Growth in Beef Production (1950 – 2006) Beef Production 3.36% Pasture Area X Animal Productivity ~ 21% ~ 79% Animal  performance X Stocking rates Land‐saving effect:  525 M ha ~ 38% ~ 62% G.B. Martha Jr., E.Alves, E.Contini (2011).
  • 8. Area with Human Activities (Probio, 2007) 90% of the Amazon Biome and  61 % of the Cerrado Biome is  still covered by the original  vegetation ! Natural Cerrado Water body Crops Cultivated  pastures Urban areas Reforestation Sano et al., Pesq. Agrop. Bras., v.43, 153-156, 2008
  • 9. Brazilian Agriculture: Some Projections (2010/2019) 42% 37.5% 35% Growth in agricultural production (%) 27.5% 28% 26.6% 23.0% 21.4% 21% 14% 10.7% 11.0% 9.5% 7% 4.2% 0% UE27 Canadá EUA Austrália Índia China Rússia Ucrânia Brasil OECD/FAO (2010).
  • 10. Evolution of Agriculture in Brazil POTENCIAL IMPACT OF CLIMATE CHANGE ON AGRICULTURAL PRODUCTION
  • 12. Variation (%) in Potential Cropland Pinto & Assad (2008).
  • 13. Simulation with IFPRI´s Impact Model – Soybean Area Source: IFPRI (2011), unpublished.
  • 14. Simulation with IFPRI´s Impact Model – Soybean Production Source: IFPRI (2011), unpublished.
  • 15. Simulation with IFPRI´s Impact Model – Soybean Yield Source: IFPRI (2011), unpublished.
  • 16. Simulation with IFPRI´s Impact Model – Soybean Net Trade Source: IFPRI (2011), unpublished.
  • 17. Potential Impacts of Climate Change in Brazilian Economy A2 - Scenario B2 - Scenario Agriculture Industry Services GDP Source: Haddad et al. (2010).
  • 18. Evolution of Agriculture in Brazil SOME POLICIES ALTERNATIVES TO MITIGATE CARBON EMISSIONS
  • 20. Projected GHG Emissions in Brazil in 2020 3.500 Energy Agriculture Land-use Industry+Residues 3.000 1515 2187 92 2704 1728 1652 2.500 114 36% 39% 2.000 1.084 M t CO2-e 84 82 86 1.500 415 1.329 415 627 1.000 883 494 461 500 416 901 329 735 694 217 329 0 1994 2005 2020 2020(I) 2020(II) Data from MCT (2011), G.B. Martha elaboration.
  • 21. Mitigation and Adaptation Technologies Mitigation • potential to mitigate emissions; • associated benefits that increase agricultural yield and  resilience; Adaptation • high‐priority to mitigate actions that have strong  adaptation benefits;
  • 22. ABC Program Action Total area Projected GHG emission Total cost (M ha) reduction (M t CO2‐e/yr.) (R$ billion) No‐till planting 8 16 a 20 2,40 Biological N fixation 5,5 16 a 20 0,30 Recovery of degraded pastures 15 83 a 104 19,65 Integrated crop‐livestock systems 4 18 a 22 34,20 Agricultural and Livestock Plan 2011/2012 (ABC Program) • Available resources R$ 3.15 billion; • Limit: up to R$ 1 million per farmer; • Threshold for a period up to 8 years; deadline for paying for a period up to 15 years; • Interest rate 5.5% per year; Source: Brazilian Ministry of Agriculture, Livestock and Food Supply (MAPA).
  • 23. Integrated Crop-Livestock Systems Alternatives May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr
  • 24. Adaptation of Crop Varieties 2005 1975 1960 Evolution and expansion of soybean in Brazil
  • 25. Concluding Remarks • The experience of Brazil’s agricultural transformation is proof that it is possible to have an efficient and competitive agriculture in the tropics; • The development of Brazilian agricultural was predominantly based on productivity gains; • There are clear opportunities to expand food, biofuels and fiber production in a sustainable way in Brazil. Intensifying pastoral systems will be of central importance; • Projected effects of climate change in Brazil are still uncertain.