Brazil , officially the Federative Republic of Brazil, is a country in South America. It is the fifth-largest country by geographical area, the fifth most populous country with 180 million inhabitants, and the fourth most populous democracy in the world.
SOUTH AMERICA BRAZIL
Ecosystems Brazil In its 8.5 million square kilometers, Brazil offers different landscapes ranging from semi-desert to evergreen tropical rainforests. It is regarded as one of the richest countries in biodiversity.
The Amazonia, an area of nearly 5 million square kilometers, occupies the northern part of South America up to the Andes. The Amazon forest is a tropical rainforest with one of the world’s highest rates of biodiversity, having nearly 80 % of its total area preserved.
Evolution of the Agricultural Production Grains Cultivated Land – Brazil 1980 to 2008 Fonte: IBGE Source: IBGE
R$ Millions Agricultural Machinery and Implements from Brazil
Brazil’ trade balance and agribusiness evolution Brazil Exports Brazil Imports Agro Exports Agro Imports Agricultural Machinery and Implements from Brazil
OTHER MAIN CROPS Source: Agrianual 2008; Published by FNP Institute
Agricultural Machinery and Implements from Brazil The Brazilian Agricultural Machinery Sector
R$ Milhões Agricultural Machinery and Implements from Brazil
IN DIFFERENT MOMENTS 1960 / 2011 – TRACTOR’S SALES IN THE DOMESTIC MARKET
Equipment average age Agriculture machinery and implements’ modernization prevented the waste of nearly 18 million tons of grains in the last four years, which is equivalent to 5% of the Brazilian annual production in the period. The significant increase of production, as well as of the domestic sales of machinery and equipment, was leverage by the increase in production, on the revenues and exports, and due to the Moderfrota (financing system). The average age of tractors is around 5.2 years and harvesters 7.7 years, considering a lifetime from 10 to 15 years. The power of the tractors sold in the Brazilian market grew, reflecting the investment made in technology and the increase in direct planting areas. Agricultural Machinery and Implements from Brazil
Evolution of Irrigated Area Fonte: ABIMAQ/ CSEI
Legislation The agricultural guidelines and policy are included in the last Brazilian Constitution (1988) on the articles - 184 and 191, which originated Law nr. 8.171, of Jan 17, 1997. It regulates the agricultural policy, defining objectives and institutional capability, which foresees resources and establishes the actions and tools to be employed, regarding stockbreeding, agro industry, fishery and forestry activities planning. Agricultural Machinery and Implements from Brazil
In every farm or production area it is compulsory to preserve: • 20% of native forest / vegetation in Southern Center Region • 35% in the Savannah Region.
Agricultural Machinery and Implements from Brazil Credit Lines for Agriculture
PRONAF (PRONAF – national programme to incentivate the small family production) PRONAF D Annual interest rate 2,00% PRONAF E Annual interest rate 5,50% • Target: Familiar Gross Earning between R$ 50 thousand to R$110 thousand • Maximum value: • Up to R$ 54 thousand • Term: Up to 5 years (60 months) • Target: FamiliarGross Earning between R$ 18 thousand and R$ 50 thousand • Maximum Value: up to R$ 27 thousand • Term: up to 5 years (60 months) Agricultural Machinery and Implements from Brazil
Moderinfra • Objective: irrigation and storage support, through the sustainable irrigated agriculture financing • Target: rural producers, individuals or companies • Annual interest rate: 6,75% • Term: up to 96 months • Shortage: up to 36 months • Guarantees: 130% • Finance: Up to 100% of the limited budget of R$ 1 million for individual undertaking and R$ 3 million for general undertaking. Agricultural Machinery and Implements from Brazil
Moderfrota • Objective: Finance new or used tractors and harvesters and new implements, all manufactured in Brazil, duly registered at the BNDES. • Annual Interest rate: 7,50% to 9,50%; • Terms: up to 60 months (72 months to harvesters) • Shortage: up to 18 months • Guarantees: 125% • Finance limit: • 100% of the budget for Stockbreeding Gross Revenue (SGR) equal or less than R$ 250 thousand – annual interest rate 7,55%. • 90% of the budget for SGR above R$ 250 thousand – annual interest rate 9,5% • R$ 20 thousand for coffee preparing, drying and processing equipment Agricultural Machinery and Implements from Brazil
Agricultural Machinery and Implements from Brazil • CONCLUSIONS • We believe that Agriculture should be seen not only as a source of food and raw materials • for industry, but also as a source of clean energy. • We believe (and practice) in a sustainable agriculture, food safety and environmental • protection • We believe that demand for a better quality food will grow consistently. • We believe that in the development of new machinery it is essential to consider 3 key • elements: the operator, the land and the environment, all combined in harmony. • We believe that both the design and performance of agricultural machinery should be • adapted to the different kinds of soils, topography (terrains), climates and operators; • safety regulations and certification are also very important.
Agricultural Machinery and Implements from Brazil • CONCLUSIONS • We believe in a continuous technological progress considering also social, cultural, • economical and human factors. • We believe that problems are becoming more and more universal and should be treated • jointly. • We believe in cooperation between nations, companies and people, therefore we have • developed a joint- venture program at Abimaq. • Brazil is a race-melting pot with religious syncretism, open to new ideas and projects! • ABIMAQ and its Chamber of Agricultural machinery and implements also are!