World Grain - December 2024 - 16

COUNTRY FOCUS
KEY FACTS
FOCUS ON
BRAZIL
Nation looks to become wheat
self-sufficient in next decade
by Susan Reidy
Brazil, already a dominant force in global agriculture as a leading
producer and exporter of multiple commodities, is steadfastly
working to grow its domestic wheat production and become selfsufficient
within the next decade.
The nation consumes more than 12 million tonnes of wheat
and wheat-based products per year, more than its national production
of roughly 9.5 million tonnes, according to the Foreign
Agricultural Service (FAS) of the US Department of Agriculture.
As a result, Brazil is among the top 10 largest wheat importers in
the world, reaching an estimated 5.6 million tonnes in 2024-25.
The wheat planted area has grown by nearly 80% in the last
40 years, improving domestic self-sufficiency from 30% to 80%
with the 2022-23 harvest. The volume of wheat milled also is
increasing per year, with a 2% increase in 2023 to a total of 12.81
million tonnes processed, according to Abitrigo, the Brazilian
wheat industry association.
Farmers and researchers have made strides in increasing crop
production, yield and planted area, but challenges remain, the
FAS said. Now, there's renewed interest to cultivate land in the
Cerrado biome, a savanna-like region in Central
Brazil, with wheat seed varieties that are
resistant to dry weather and soil conditions.
" Considering
the history
paved by Brazil with corn and
soybeans, when the country
shifted from a net importer
in the 1980s to a primary
exporter in current days,
Brazilian tropical wheat is
likely to gain momentum,
as the other grains before
it, " the FAS said.
The country is the
world's largest producer
of coffee, sugar cane and
oranges, and is one of the
world's largest producers of soybeans,
accounting for nearly 40%
16
Capital: Brasilia
Population: 220,051,512
Religions: Roman Catholic 52.8%, Protestant 26.7%
(Evangelical 25.5%, other Protestant 1.2%), AfricanAmerican
cultist/Umbanda 1.8%, other 3%, agnostic/
atheist 0.6%, none 13.6%, unspecified 1.4% (2023 est.)
Location: Eastern South America, bordering the Atlantic
Ocean
Government: Federal presidential republic. Chief of
state and head of government: President Luiz Inácio
Lula da Silva (Jan. 1, 2023).
Economy: Brazil is the world's ninth-largest economy
and has been experiencing a slow but steady recovery
in recent years. It has abundant natural resources
and a relatively diversified economy. It is the world's
largest producer of coffee, sugar cane and oranges
and one of the largest producers of soybeans. Home
to the world's largest rain forest, Brazil is the world's
fourth-largest exporter of timber. It also is home to the
world's largest commercial livestock herd and attracts
many multi-national groups in the food and biofuels
sector. Brazil's real GDP expanded by 2.9% in 2023 and
is expected to grow by 2.8% in 2024, driven by solid
consumption, sustained by a robust labor market, and
fiscal transfers. Real GDP growth is expected to moderate
to 2.2% in 2025 and to converge to 2.3% in the
medium term, reflecting the effect of past and ongoing
structural reforms. Inflation is projected to gradually
converge toward 3.8% by 2025, within the Central
Bank's target range, though a recent deterioration of
inflation expectations is likely to slow the pace of the
monetary easing, which in turn will contribute to moderate
growth. Poverty, measured at the $6.85 per capita
per day poverty line, decreased from 23.5% in 2022
to 21.8% in 2023, explained by improvements in economic
conditions and social protection policies. Brazil's
macroeconomic buffers remain solid, with ample
international reserves, low external debt, a credible
and independent central bank, a resilient financial system,
and exchange rate flexibility. In addition, Brazil
initiated the first phase of a long-awaited reform of indirect
taxes. The indirect tax reform is expected to improve
the business environment through tax simplification
and to boost productivity. While the agriculture
sector registered productivity gains (through investments
in innovation, technology, and trade logistic, as
well as sector-specific government incentives), part of
this success relied on extensive farming methods that
threaten important biomes and biodiversity. In recent
years, the country has embarked on the production of
high added-value services, especially in the fields of
aeronautics and telecommunications.
GDP per capita: $18,600 (2023); inflation: 4.59% (2023
est.); unemployment: 7.95% (2023 est.).
Currency: Brazilian
real (BRL); 5.77 Brazilian
reals
equal 1 US dollar (Nov. 19, 2024).
Exports: $389.626 billion (2023 est.): soybeans, crude
petroleum, iron ore, refined petroleum, corn (2022).
Imports: $346.639 billion (2023 est.): refined petroleum,
fertilizers, vehicle parts/accessories, crude petroleum,
pesticides (2022).
Agriculture: 6.8% of GDP (2023) and 10% of the labor
force (2023).
Internet: Code: .br; 170.1 million users (2021 est.).
Source : CIA World Factbook/World Bank
December 2024 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - December 2024

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