IBOV 175,135.41 ▲ 0.31% IPSA 11,470.79 ▲ 0.89% IPC MEX 65,829.98 ▼ 0.55% MERVAL 3,001,209 ▼ 0.79% COLCAP 2,489.80 ▼ 0.59% BVL PERÚ 60,629.82 ▲ 0.25% USD/BRL5.16▲ 0.03% USD/MXN16.96▼ 0.17% USD/CLP926.38— 0.00% USD/COP3,150▲ 0.69% USD/PEN3.35▼ 0.07% USD/ARS1,512▼ 0.15% USD/UYU40.25▲ 1.53% USD/PYG5,905▲ 0.48% USD/BOB11.65▲ 2.81% USD/DOP58.44▲ 0.67% USD/CRC448.38▲ 1.62% USD/GTQ7.63▲ 2.37% USD/HNL26.83▲ 1.77% USD/NIO36.62▼ 0.02% USD/VES789.69▼ 0.08% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD 157.28 — 0.00% USD/TTD6.73▲ 1.14% EUR/BRL6.01▲ 0.25% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73% IBOV 175,135.41 ▲ 0.31% IPSA 11,470.79 ▲ 0.89% IPC MEX 65,829.98 ▼ 0.55% MERVAL 3,001,209 ▼ 0.79% COLCAP 2,489.80 ▼ 0.59% BVL PERÚ 60,629.82 ▲ 0.25% USD/BRL 5.16 ▲ 0.01% USD/MXN 17.06 ▼ 0.24% USD/CLP 913.98 ▲ 0.04% USD/COP 3,140 ▲ 0.03% USD/PEN 3.36 ▼ 0.66% USD/ARS 1,493 ▲ 0.10% USD/UYU 40.27 ▲ 1.24% USD/PYG 5,939 ▲ 1.68% USD/BOB 11.64 ▼ 0.76% USD/DOP 58.34 ▲ 1.25% USD/CRC 445.92 ▲ 0.89% USD/GTQ 7.62 ▲ 2.21% USD/HNL 26.79 ▲ 1.57% USD/NIO 36.62 ▲ 0.69% USD/VES 762.44 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 157.28 — 0.00% USD/TTD 6.70 ▲ 0.61% EUR/BRL 5.95 ▲ 1.01% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73%
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Brazil Business - Brazil

Brazil proposes to strengthen Mercosur to become the “OPEC of food”

By · May 18, 2022 · 4 min read

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RIO DE JANEIRO, BRAZIL – The Vice-President of Brazil, Antonio Hamilton Mourão, proposed strengthening Mercosur to become the “OPEC of food”, similar to the Organization of Petroleum Exporting Countries, which for several years was able to exert a decisive influence in the world based on this strategic fuel.

He did so in the initial part of a new edition of Mercosoja, an event promoted by Embrapa (Brazilian Agricultural Research Corporation), under the theme “Challenges for sustainable production in Mercosur”. Simultaneously, the 9th Brazilian Soybean Congress (CBSoja) is being held. The deliberations take place in Foz do Iguaçu. On this occasion, Argentina’s ACSOJA (the soybean chain) has actively collaborated with the organization.

Hamilton Mourão reaffirmed Brazil’s state policies, defining the agribusiness sector as the main driver of its development, with the challenge of promoting it and making it grow.

Along these lines, he demanded that the Brazilian Congress pass laws to reduce taxes and made reference to adding more value to exports while guaranteeing more logistic investments to make producers more competitive.

Brazil's Vice-President, Antônio Hamilton Mourão.
Brazil’s Vice-President, Antônio Hamilton Mourão. (Photo: internet reproduction)
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THE MIRROR IN WHICH TO LOOK

The Sustainable Production and Irrigation Department director gave a sobering presentation on how Brazil intends to capture portions of a world mass of 30 trillion “green” dollars that are now available.

He also outlined the ABC Plan (Low Carbon Agriculture), low carbon and carbon neutral products, and the fact that the country has adopted public policies that are not of a government but of the State. Several governments have passed, and the ABC Plan is now in its second development phase.

In addition, in livestock, Brazil has carbon-neutral leather and low carbon meat, “which are a world example”.

“We should not sit back and wait for things to happen,” he said.

ACSOJA’S ASPIRATION

“Hopefully, we will manage to convince Argentine society that the path to our future development requires strengthening the sectors in which we are competitive,” commented Luis Zubizarreta, president of ACSOJA.

Zubizarreta participates in the event on behalf of the organization, together with Rodolfo Rossi, a member of the Executive Committee and former President of ACSOJA.

To follow the Congress: http://cbsoja.com.br

BRAZIL, AN AGRICULTURAL POWER

On the first day of the Congress, Fabiana Villa Alves, Director of the Department of Sustainable Production and Irrigation of the Brazilian Ministry of Agriculture, spoke of the need to produce more, with less land, fewer natural resources (water, soil, space), and emitting less greenhouse gases.

He recalled that Brazil is “a great power in sustainable agricultural products,” closely linked to innovation.

“We have great opportunities in soybeans and meat on sustainable bases. In 2020 we started working with low-carbon soybeans, and now there are other low-carbon and carbon-neutral products such as coffee and sugarcane, for example,” she said.

A STATE POLICY, NOT A GOVERNMENT POLICY

“Soybean agriculture in Mercosur is based on science. In Brazil, we owe 3 out of every 4 tons of productivity growth over a 40-year period to science. We have public policies that are not of a government but of the State. Several governments have passed, and the ABC Plan (Low Carbon Agriculture) is in its second phase. There are 12 public policies covering sustainability,” said Villa Alves.

30 BILLION “GREEN” DOLLARS

He repaired that there is more and more pressure from consumers, markets, and, above all, investors.

“It’s a no-turn road; there are US$30 trillion available in green private funds. They are shareholders and investors willing to finance to place resources in companies with clear criteria. In soybean, we have reputational advantages. We show that Brazil has no-till farming, attraction of green investments, risk mitigation, new opportunities, and lately, adherence to global goals and commitments,” he highlighted.

NOT WAITING FOR THINGS TO HAPPEN

Brazil has public and private protocols (organic soybeans, sustainable soybeans, low carbon soybeans) and minimum compliance standards through current legislation.

“Minimum compliance standards are going up over the years; we should not stay comfortable waiting for things to happen. We must create methodologies and ecosystems as they have already been created. The rules are ours, with internationally accepted indicators,” he noted.

LIVESTOCK AS WELL

The official referred to the fact that they have carbon-neutral leather and low carbon meat in livestock farming, which are world examples.

The State of Mato Grosso do Sul created a Carbon Neutral State and has actions in soybean, meat, and sugar cane.

GOALS, NOT STATEMENTS

The ABC Plan is the world’s largest sustainability policy for the agricultural sector being promoted by Brazil. It began in 2010 and is now in its second stage.

“We had hoped to reach the equivalent area of one Germany with one of the six technologies, and in 2020, we managed to exceed 50% of our goals and 15% of CO2 mitigation,” said Villa Alves.

In October 2020, ABC+ was launched with new targets and revised technologies. The goals are 72.68 million hectares, 208.4 million m3 of treated residues, and 5 million additional animals confined in intensive finishing.

These goals were built with working groups, convening Embrapa researchers, civil society, and associations. They are feasible goals that bring challenges. Until 2030, they will be one billion tons of carbon mitigation equivalents.

“The great objective of ABC+ is to achieve more sustainable, more resilient, and, therefore, more competitive agricultural systems,” concluded the Sustainable Production and Irrigation Department director.

THE NEW ABC+ GOALS

New goals for ABC+ Plan technologies:

  • 30 million ha of pastures recovered;
  • 12.5 million hectares of well-done no-tillage;
  • 10.10 million ha of integrated systems with combinations;
  • 4 million hectares of implanted forests;
  • 13 million hectares with bio-inputs, growth promoters, nitrogen fixers, etc.;
  • 208.40 million hectares of treated animal excrement;
  • 3 million hectares of irrigation systems as major mitigators and promoters of food security;
  • 5 million more animals with intensive confinement finishing.

With information from Agro Verdad

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