2. SOCIEDADE RURAL BRASILEIRA
.... is a society with the sole purpose of fostering the
development of cattle ranching, agriculture, all related industry
derived from these industry as well as to support any initiative
that can provide the development of new forms of agribusiness
that can increase the national wealth .....
Excerpt from the minutes of the foundation of Sociedade Rural Brasileira in May 1919.
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3. SOCIEDADE RURAL BRASILEIRA
Rural advocates all interests related to the practice of agricultural
activity in Brazil, acting the as the main political negotiator in favor
of the Brazilian agribusiness.
The respected position of Rural today has been gained over the
past 93 years defending and promoting public policies and the
private sector competitiveness in agriculture and livestock
management.
Four Ministers of Agriculture and 17 State and federal Secretaries
of Agriculture have come from Rural since 1919.
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4. 1. Land Use and Environmental Protection
2. Proteins and Grain Production
3. Renewable Energy
4. Challenges to an Emerging Power
5. The Agribusiness is the Business of Brazil
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5. Brazil at glance
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6. Brazil combines the critical mass of its economy with compelling
investment opportunities
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7. Brazil is a established democracry with free press, political stability,
cultural diversity, strong work ethics, and rapidly growing economy.
• Growth: the 6th largest economy in the world
• Consolidated Democracy: Political stability with 15+ years of low
inflation and growth
• Maturing capital markets: BMF&Bovespa is the 3rd largest stock and
derivatives exchange in the world, and the largest equity options market
in the world.
• Infrastructure needs: Surging demand for infrastrucutre improvements
across all sectors, with investments expected to leap from US$216 bi to
US$ 1 trillion by 2020.
• Poverty down 50%: Over the last two decades, largely to government
policy, the poverty rate has halved.
• Emerging BoP+: Over this past decade, 40 million have acquired
disposable income.
• Urbanization: In 2010, more than 86% of total population was living in
urban areas.
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Source: OECD, IMF, WFE, Bloomberg and FIA

8. The sheer size and the social issues of the Brazilian economy
create impactful business opportunities.
• Midsized cities are leading the way in economic development
• 86% of the country is urban (in the US is 80%)
• Self sufficient in energy
• Leading producer of renewable fuels (sugar cane ethanol)
• Self sufficient in food and world’s # 3 exporter
• Vigorous retail with 5yr doubling of consumer credit
• Solid real estate growth, strong regulatory framework
• Stable justice and democratic institutions
• Free flow of duly registered investment in and out of the country
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Source: OECD, IMF, WFE, Bloomberg and FIA

9. The emerging Brazilian BoP consumer has discretionary income,
and wants access to essential products and services.
• Housing – 8 million unit deficits
• Schooling – 7.4 years on average (world avg. = 11.3 yrs)
• Energy – 60% of low income households obtain illegally
• Water & Sewage – 50 years away from supplying to every
household
• Banking System – 40% of the population not served
• Internet – 55% of the population without access
• Healthcare – 1.3 doctors per 1,000 hab, regional infant
mortality up to 30 per 1,000
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BoP = families of 4 living on less than US$300 per month
BoP+ = families of 4 living with income less than US$900 per month

10. 1 - Land Use and Environmental Protection
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11. Land Use and Environmental Protection
• Brazil has the largest environmental protected area of the planet. It is more
than 554 million ha of forests and other forms of vegetation that adds to
65% of the country’s area. The US has approximately 50% of their territory
designated as protected areas (477 million ha).
• A new and up to date Federal Environmental Regulatory Policy has been
introduced by the Brazilian Congress in 2012. It is not great or ideal but it
will now drive the development of an even more sustainable and modern
agribusiness industry in Brazil.
• Brazil has 272 million ha (32%) dedicated to agriculture and cattle ranching.
As the country develops and new technology is made available for both our
“tropical agriculture” and livestock genetics, agriculture will advance into
ranching areas to increase food production.
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12. Land Use and Environmental Protection
• Since 1980 grain production has increased 227% to reach 180 million tons
and land usage only grew by 50% (60 million ha). Brazil has proved
possible to grow agriculture production with no further deforestation of
protected areas. Existing areas currently dedicated to cattle ranching can
be and will be used for additional agriculture production. In the short term,
productivity gains, especially in regards to protein production (cattle
ranching), will be key to the success of the Brazilian agribusiness and the
world’s food supply.
• Nevertheless, agricultural production in Brazil is a business that requires
very high capital investments in land, facilities, machinery and research
and efficiencies of scale must be pursue. Therefore large producers who
can make the most effective use of large, expensive machines, financial
resources and technology will be favored thru the development of the
Brazilian agribusiness.
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13. 2 – Proteins and Grain Production
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14. Proteins and Grain Production
• Over the past 35 years, Brazil has developed and consolidated one of
the world's most efficient agriculture and the only one free of
subsidies in the world.
• In 2012, Brazilian grain production should reach 180 million tons and
surpass the US, for the first time, to be the top producer of soybeans
in the world.
•Currently Brazil is ranked top 3 in agriculture production in the world
being ranked number 1 in both production and exports in sugar,
soybeans, coffee and orange juice, number 2 in ethanol, tobacco and
beef and number 3 in poultry, pork and corn. In most of these products
Brazil controls a significant share of the world’s trade.
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15. Proteins and Grain Production
• World population should reach 9 billion people by 2050. According to FAO/UN the
world will face food shortages by then unless grain production increases by 1
billion tons and proteins production by 200 million tons;
• The Brazilian Government estimates that by 2050 Brazil can boost its grain
production by 88% to reach 300 million tons and increase protein production by
98% reaching 53 million tons of meat.
• It is not enough, Brazil must do better than that.
• It has natural advantages and the potential to contribute to a bigger share of the
additional demand and place itself as a leader in food production. In order to do
that it will require nationwide focus and objectivity to attract high capital
investments in strategic areas and talented people to overcome the challenges.

16. 3 – Renewable Energy
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17. Renewable Energy
• The discussion of the advantages and disadvantages of the use of arable areas for
energy production is always complex and the arguments are reasonable on both sides.
The fact is that at some point we'll be pitchforks to change our energy matrix from fossil
sources for other sources, but at the same time we have a pressing need to produce
more food for a growing demand.
• In Brazil this debate is even more difficult because it involves a mature and important
activity of the Brazilian economy. The role of renewable energy in the Brazilian energy
matrix in 2011 was 44%, being that the sugar sector represented 17% of final energy
consumption;
• The area used for ethanol is less than 5% (13 million ha) of the total arable land and
very little to justify the debate, especially considering that 50% of the production is
intended for the production of sugar.
• However the ethanol program is adrift and need to have a definition of its role in
Brazil's energy matrix. Without a clear view of what is set for it, a strong regulatory
framework, investments will not come.
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18. 4 – Challenges to an Emerging Power
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19. Challenges to an Emerging Power
• A research showed that Brazilian farmers use better inputs (seeds, fertilizers,
pesticides, labor, feed, etc.) to produce more in less area. From this fact, we
observed that our problems start “out of the gate”, the famous "Brazil cost". From
there, our products get more expensive by the high tax burden, lack of transport
infrastructure, ports, blackout, etc...
• Between sowing, harvest, storage, transportation, domestic consumption and
export losses, it is estimated that between 10% to 15% of what is produced is lost
• The Brazilian agribusiness suffers annual losses of approximately US$ 4 billion
due to poor logistics infrastructure. In total, the country, that invests only 0.3% of
its GDP in the industry, loses about US$ 80 billion.
• The situation is so precarious that the Ministry of Transportation estimates that it
will take about US$ 300 billion and 13 years (2025) to address the bottlenecks of
the Brazilian infrastructure.

20. Challenges to an Emerging Power
 Of the total soya transported in Brazil, 11% circulates through waterways, 36% by
rail and 53% by road. In the United States, a country with geographical dimensions
similar to Brazil, 60% of soybean transportation is done by waterways, railways by
35% and only 5% by road.
 Furthermore, the average distance from Brazilian producing areas to the ports is
1000 to 1100 km, very different from Argentina, where the maximum path is 300
miles. Also according to ANEC, from 2003 to 2009, the transport costs have risen,
on average, 147% in Brazil, 35% in Argentina and 16% in the United States.
• Conclusion: there is a clear disconnect between the productive performance of the
Brazilian Agribusiness and the objective actions of its public officials when it
comes to infrastructure.
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21. 5 – Agribusiness is the Business of Brazil
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22. Agribusiness is the Business of Brazil
Logistics
Equipment
And
machinery Services
Agribusiness
Inputs
Financial
Education
and
Research
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23. Agribusiness is the Business of Brazil

24. Agribusiness is the Business of Brazil
 The traditional GDP calculation no longer represent the importance of agriculture
in Brazil since it limits the agribusiness influence to other industries and
disregards any wealth generated by the service sector and their interconnectivity.
• If considered the whole chain of wealth associated to the agribusiness, the
absolute value would reach US$ 917 million (22% of Brazil’s GDP)
MANUFACTURING
6,32%
SUPPLIES DISTRUBUTION
6,64%
2,63% 22,15%

25. Agribusiness is the Business of Brazil
• Despite the recognition that the Brazilian agribusiness is modern, has incorporated
technology and generates large trade surpluses, still carries negative perception
among our urban society (i.e. current criticisms of Brazilian exports)
• Brazilian exports supposedly comprised of a heavy percentage of “primary
products” is a clear misperception.
• Brazil has a distinguished comparative advantages by the wide availability of
natural resources combined with high technology to supply the world products
(food, fiber and energy) that have huge demand and should focus on taking
advantage of it.

26. Agribusiness is the Business of Brazil
 The Brazilian agribusiness today is based on a capital-intensive model with a
complex and sophisticated relationship with all different industries of the Brazilian
economy.
 The division of the economy into primary, secondary and tertiary sectors made ​
​
sense in the past. The idea of "deindustrialization" has no place in today’s
Brazilian agribusiness where its agent meets the same standards of production
and management of those from the secondary and tertiary sectors. Agribusiness
involves farming but also upstream and downstream manufacturing and services.
 If the world desperately needs food and energy, Brazil should urgently initiate an
organized process of strategic planning to define how to meet this demand in a
competitive and sustainable way.
 This is not just a market opportunity for Brazil, it is a matter of WORLD SECURITY
and a deciding moment for Brazil to step in as a GLOBAL LEADER.
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