Increased food production can be achieved by incorporating more land into the productive process, by increasing productivity in already opened areas or by a combination of both strategies. By allowing a fraction of current pasture area to accommodate the expansion of food and biofuel crops intensification of existing pastoral systems is a strategy to avoid further loss of native vegetation. However, there is a common misperception that the path of growth of the Brazilian beef production has been primarily based on the expansion of extensive pastures. Empirical evidence presented in this article shows that whilst this was the case for the 1950-1975 period, the pattern of cattle production in Brazil has changed profoundly since then. During the 1950-2006 period productivity gains explained 79% of the growth in beef production in Brazil and supported a land-saving effect of 525 million hectares. Therefore, without this land-saving effect an additional pasture area that is 25% higher than the Amazon biome in Brazil would be needed to meet current levels of Brazilian beef production.
Resumo -Os sistemas de integração lavoura-pecuária (ILP) têm sido propostos como solução tecnológica para atender critérios de sustentabilidade, mas tal assertiva tem-se baseado principalmente em indicadores agronômicos e ambientais. Neste trabalho, explorou-se a perspectiva econômica da ILP. Os benefícios econômicos potenciais desses sistemas podem refletir-se em economia de escopo (diminuição do custo, em razão da produção de múltiplos produtos) ou nos efeitos de redução de risco pela diversificação. Além disso, eles podem envolver menor variabilidade produtiva e maior produtividade. A mensuração acurada das interações entre os componentes lavoura e animal (pastagem) é etapa-chave a ser perseguida. A tomada de decisão em prol de sistemas diversificados vis-à-vis sistemas especializados deve ser feita de acordo com os preços relativos. A ILP compete com sistemas especializados de pecuária, mas não apresenta taxas de retorno competitivas em comparação a sistemas especializados com soja. A elevada demanda por capital da ILP, particularmente para a aquisição de animais em recria para a engorda, explica as menores taxas de retorno da ILP e é vista como uma das principais restrições para a ampla adoção de sistemas mistos. O desenho de mecanismos de financiamento inovadores será essencial para promover e acelerar a adoção em larga escala da tecnologia.Termos para indexação: análise de risco, diversificação, economia de escopo, pastagem degradada, pecuária de corte, soja. Economic dimension of integrated crop-livestock systemsAbstract -Integrated crop-livestock systems (ICLS) have been proposed as a technology solution to meet sustainability criteria, but this claim has been based mainly on agronomic and environmental indicators. In the present study, the economic perspective of ICLS was explored. The potential economic benefits of these systems may be reflected in economies of scope (cost reduction associated with producing multiple outputs) or in the risk-reducing effects of diversification. Furthermore, they may involve lower yield variability and overall higher yields. The accurate measurement of interactions between crop and animal (pasture) components is a key step to be pursued. Decision making toward diversified vis-à-vis specialized agricultural systems must be made according to relative prices. ICLS out-compete specialized livestock systems but do not show competitive rates of return in comparison to specialized soybean systems. The high demand for capital in ICLS, particularly for the acquisition of growing animals for fattening, explains ICLS' lower return rates and is perceived as a major constraint on the widespread adoption of mixed systems. The design of innovative financing mechanisms will be essential to foster and speed large-scale adoption of the technology.
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Brazilian agriculture is a success story. The country that until the 1960s systematically received food donations from abroad. and up to the 1980s was still a large food importer, had its agriculture profoundly changed. The traditional agriculture that prevailed in Brazil until the 1970s was progressively transformed in the following decades into a modern and highly competitive agriculture based on science. Along with this structural transformation in the primary sector, the industry and service sectors directly linked to agriculture also became two of the world's biggest and most competitive. Furthermore, as food production increased at higher rates than food demand over time. food prices decreased.? These gains in consurner surplus took place due partially to lower income for Brazilian farmers.'Brazil is now recognized as the sole agricultural power in the tropics.' According to recent estimates, on a country basis, Brazil's share in world agricultural markets (8 percent) is only second to that of the United States (17 percent) (Liapis. 2010) and some analysts already suggest that Brazil's share will be similar to that of the US in the next 10 to 15 years. The Organisation for Ewnomic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO). from the United Nations, in their 2010 joint agricultural outlook projected that Brazilian agricultural production will increase 38 percent from 2010 to 2019 (OECDI FAO, 2010). This huge increase in agricultural production is nearly twice the global average and severa1 times higher than the figures prospected for giants in world agriculture such as the United States, Canada and the European Union.
SECTION 1. INTRODUCTION AND MOTIVATION 17 Low productivity growth is impacting Brazil's economic growth Productivity growth in Brazilian agriculture has been an island of success SECTION 2. EVOLUTION AND SOURCES OF AGRICULTURE PRODUCTIVITY GROWTH 31 From food net importer to food net exporter and global agriculture trade leader Agriculture productivity growth differs among farm sizes and regions Agriculture productivity gains driven by technical change Agriculture productivity growth helped by trade liberalization SECTION 3. USE OF FACTORS OF AGRICULTURE PRODUCTION 41 Natural Capital Human Capital Physical Capital SECTION 4. IS BRAZIL MAXIMIZING AGRICULTURE GROWTH OPPORTUNITIES? 57 Natural Capital Human Capital Physical Capital SECTION 5. CONCLUSIONS AND POLICY RECOMMENDATIONS 57 Advancing the agriculture productivity frontier in a sustainable way Closing the agriculture productivity gap for those left behind Exploiting opportunities to generate more and better jobs REFERENCES 75 10
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