4. 4
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6. Brazil's economic and social progress between 2003 and 2014 lifted 29 million people out of poverty and inequality
dropped significantly (the Gini coefficient fell by 6.6 percentage points in the same period, from 58.1 down to 51.5). The
income level of the poorest 40% of the population rose, on average, 7.1% (in real terms) between 2003 and 2014,
compared to a 4.4% income growth for the population as a whole. However, the rate of reduction of poverty and
inequality appears to have stagnated since 2015.
Brazil is currently going through a deep recession. The country's growth rate has decelerated steadily since the beginning
of this decade, from an average annual growth of 4.5% between 2006 and 2010 to 2.1% between 2011 and 2014. GDP
contracted by 3.8% in 2015, and is expected to fall at least 3% more in 2016. The economic crisis, as a result of the fall in
commodity prices and an inability to make the necessary policy adjustments, - coupled with the political crisis faced by
the country - has contributed to undermining the confidence of consumers and investors.
Source : The World Bank in Brazil - http://www.worldbank.org/en/country/brazil/overview 6
Brazil Recent Years´ Overview and Current Status
7. 7
The realignment of regulated prices combined with the pass-through of exchange rate depreciation have caused an
inflation peak in 2015 (with an inflation rate of 10.7% in December), exceeding the upper limit of the government’s target
band (4.5 ± 2%), despite a tight monetary policy and high real interest rates. The inflation rate of administered prices has
been decelerating and will contribute to the moderate slowdown expected in 2016. Overall inflation is still expected to
end the year at over 7%, above the target ceiling.
Following the impeachment of President Dilma Rousseff on August 31st (2016), former Vice President Michel Temer took
office as the new President of Brazil. He announced that his government would pursue several fiscal adjustment measures
and a reform agenda to reestablish confidence and to restore a favorable investment environment. However,
implementation of the reform program has proven difficult and faces opposition in Congress.
Fiscal adjustment is undermined by budget rigidities and a difficult political environment. Less than 15% of expenditure in
Brazil is discretionary. Most public spending is rigidly determined (by rules in the Constitution or other legislation) and
cannot legally be reduced. Budget rigidities and pension liabilities have imposed significant burdens on subnational
governments, some of which have had to delay payments and may face the risk of insolvency.
Source : The World Bank in Brazil - http://www.worldbank.org/en/country/brazil/overview
Brazil Recent Years´ Overview and Current Status
8. 8
The crisis has led to significant adjustments in the balance of payments current account. By July 2016, the current account
deficit had dropped to 1.6% of GDP - in comparison with 4.3% in 2014 – mainly in response to the contraction of the GDP
(as well as a moderate devaluation in the real exchange rate). Foreign direct investment accounted for 4.2% of the GDP
2015, thus funding 132% of the current account deficit. Brazil had an ample level of reserves of US$ 358 billion - or 18
months of imports - at the end of 2015.
Brazil’s medium-term outlook will depend on the success of the current adjustments and the enactment of growth-
enhancing reforms. Raising productivity and competitiveness is the main challenge for the country to achieve higher
growth in the medium-term. With the recession of growth drivers over the past decade — credit-fueled consumption,
labor expansion and the commodity boom — growth will need to be based on higher investment and productivity gains.
Despite the achievements in poverty reduction over the last decade, inequality remains at high levels. After achieving
universal coverage in primary education, Brazil is now struggling to improve the quality and outcomes of the system,
especially at the lower and upper secondary levels.
Source : The World Bank in Brazil - http://www.worldbank.org/en/country/brazil/overview
Brazil Recent Years´ Overview and Current Status
9. 9
Great progress has also been achieved in reducing deforestation in the rainforest and other sensitive biomes. However,
the country still faces major development challenges - especially in finding ways to combine the benefits of agricultural
growth, environmental protection and sustainable development.
Brazil played a key role in formulating the climate framework for the 2015 COP 21 and has ratified the Paris Agreement.
The country has once again demonstrated its leadership role in international negotiations on climate change, showcased
by significant contributions to climate change mitigation within its borders. Brazil has voluntarily committed to reducing
its greenhouse gas emissions between 36.1% and 38.9% by 2020 - and it will likely reach that objective sooner.
Source : The World Bank in Brazil - http://www.worldbank.org/en/country/brazil/overview
END
Brazil Recent Years´ Overview and Current Status
11. 11
“BEHIND THE WHEEL”
Video: Case IH and New Holland harvesters as they raise the curtain on the 2018 soybean harvest in Brazil’s rural Midwest region of Mato Grosso.
Source : CNH Industrial - http://cnhindustrial.com/en-US/media/behind_the_wheel_videos/pages/default.aspx
13. 13
How technology will help Latin America to feed the world
“If you want to invest in global food security, in preventing hunger in all corners of the world, then invest in Latin America
agriculture,” states Luis Alberto Moreno, president of the Inter-American Development Bank (IDB) in a report highlighting
Latin America’s potential to “feed the world”. According to the document, addressing humanity’s great challenge (basically,
to feed a rapidly growing global population without expanding farming into sensitive areas or compromising on quality) is
going to be the continent’s great opportunity. And technology has a lot to offer Latin America in its crusade.
“The potential of AgTech (agricultural technology) is absolute. We won’t be able to produce the food we need in a
sustainable way without using these new technologies. It is going to be unfeasible,” says Professor Mateus Mondin,
researcher at Esalq, a Brazilian college of agriculture founded in 1901 and ranked recently as the fifth best college of its
kind in the world.
Latin America has a third of the world’s fresh water resources and more than a quarter of the world’s medium-to-high
potential farmland. As a whole, Latin America is already the largest net food exporting region in the world. Brazil alone is
the world’s largest exporter of different commodities, like sugar, coffee, orange juice, soybean and chicken meat according
to the country’s Ministry of Agriculture.
Source : Agrosmart - https://agrosmart.com.br/agribusiness/how-technology-will-help-latin-america-to-feed-the-world
14. 14
“Brazil can take the lead,” says Mondum when I ask about the impact of technology adoption in a country where
agribusiness represents 20 per cent of GDP and half of exports.
“We will have a competitive advantage in the commercialisation of commodities. We are going to be able to offer a
commodity with better quality, lower cost and, above all, with appeal on the issue of sustainability.”
“For example, we know that the world’s largest consumption of water is not located in urban areas; the largest
consumption is in farms, for irrigation. And today we already have technologies that show us when to irrigate, in which
quantity, resulting in savings of 60 per cent to 70 per cent in the use of water. This is quite something.”
Agrosmart is a Brazilian startup focused on irrigation control. Founded in 2014 by a young female entrepreneur, the
company promises savings of 60 per cent in the use of water. By using sensors on the ground, its platform is able to
monitor environmental variations such as rainfall and soil moisture, resulting in a report with recommendations of when to
irrigate and how much water to use. The platform also gives the farmer information about the propensity of pests and
diseases in the area.
Source : Agrosmart - https://agrosmart.com.br/agribusiness/how-technology-will-help-latin-america-to-feed-the-world
How technology will help Latin America to feed the world
15. 15
In a business where decisions are still often made on intuition, past experiences or even by watching the behaviour of other
farmers, collection and analysis of Big Data promises to revolutionise production.
“Agriculturists do like technology. But yes, there is a cultural issue when adopting technology because the agribusiness is
marked by risk; you are at the mercy of the environment. So if the farmer doesn’t feel safe, doesn’t realise an immediate
monetary return, he will probably take some time to adopt this technology,” Mondin says.
“You have to test this technology, sometimes in different agricultural cycles. And depending on which crop we are talking
about, the cycle can take up to a year.”
In short:
1. Brazil agribusiness competencies and learning-from-experience over long periods of time represents competitive asset;
2. More and more technology is needed and put to use to monitor, prevent and predict natural or planned developments;
3. Brazil has excellent conditions to increase productivity in the fields by training and exposing people to new technologies;
4. Brazilian average working population is eager to keep itself abreast from technical & technological advancements;
5. Both personal commitment to growing SMEs and the advent of investors that can leapfrog modernization are expected;
6. LIN can provide local business owners and consulting partners the access to international markets they need – and
7. Facilitate global communication and teamwork to devise mutually beneficial opportunities, design proposals and implement projects.
Source : Agrosmart - https://agrosmart.com.br/agribusiness/how-technology-will-help-latin-america-to-feed-the-world
How technology will help Latin America to feed the world
16. 16
How technology will help Latin America to feed the world
Brazil’s Agtech Valley
Professor Mateus Mondin is also the president of the incubator EsalqTec. Connected to the agricultural college Esalq and based
in Piracicaba, a two-hour drive from the city of São Paulo, the incubator is one piece of a broader strategy to transform
Piracicaba into a kind of Silicon Valley for the agribusiness. EsalqTec has helped startups such as Agrosmart to develop its
technology.
Just as happened in the Silicon Valley, the research and knowledge generated at the Esalq college is essential to the creation of
an ecosystem for innovation.
“We are in a region with strong agricultural production,” Mondin says. “In this region, we also have at least 60 startups in the
AgTech scene. All this creates an ecosystem that is analogous to the one you find at the Silicon Valley with Stanford. Our
greatest differential is that we have an ecosystem for the AgTech sector specifically.”
Enthusiastic and confident, Mondin says Brazil is already taking the lead not only in the production of commodities but also in
the development of technology for the sector.
Source: IDG Connect