Sunday, March 7, 2010

Brazil Surpasses Canada and Is Now Third Largest Agricultural Exporter

Brazil has surpassed Canada to become the third largest exporter of agricultural products in the world. In the last decade, the country had left behind Australia and China. Today, only the United States and European Union sell more food on the planet that farmers and ranchers in Brazil.

Data from the World Trade Organization (WTO), released this year show that Brazil exported U.S. $ 61.4 billion in agricultural products in 2008, compared with $ 54 billion in Canada. In 2007, Canadians were narrowly ahead, with sales of $ 48.7 billion, compared with $ 48.3 billion in Brazil.

The growth of Brazilian production of food has made it clear that the turn was about to occur. Between 2000 and 2008, agricultural exports from Brazil grew 18.6% on average per year, up from 6.3% in Canada, 6% Australia, 8.4% of the United States and 11.4% of the Union. In 2000, the country ranked sixth in the ranking of agricultural exporters.

A number of factors ensured the advancement of Brazilian agriculture in recent years: natural resources (soil, water and electricity) available, product diversity, a relatively favorable exchange until 2006 (after the recovery of the real hurt profitability), the increase in demand by Asian countries and the growth of productivity of crops. "There was a shift in comparative advantages in favor of Brazil, which had a low cost of production for various products in this period thanks to its natural resources and foreign exchange," said Garry Smith, senior analyst at the Organization for Economic Cooperation and Development (OECD).

According to the managing partner of MB Agro, Alexandre Mendonca de Barros, "Brazil is now the only major tropical agriculture in the world. He points out that the use of the land is better in the tropics. In some regions of Brazil, it is possible to plant corn after soybean harvest, which means two seasons in the same year.

From newspaper O Estado De Sao Paulo.

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