Brazilian Government announces upwards of $58 billion in funding for agricultural development
On the 7th June, the Brazilian government announced that it would be allocating $58.2 billion (USD) of funding to finance the country’s Agriculture and Livestock plan for 2017 – 2018. It is hoped that this substantial investment will help the agricultural sector achieve record grain harvests for this growing year.
In line with this performance, the Brazilian economy has seen a 1% growth in GDP after the first two quarters of this year. Blairo Maggi, the country’s Agricultural Minister, stated that this impressive economic performance (in comparison to recent years) has been mainly driven by the stable and successful performance of the country’s agricultural sector. Brazilian President, Michel Temer, echoed these sentiments, calling the financial plan a ‘reaffirmation’ of the Government’s commitment to the agricultural and livestock sector 1.
AGRICULTURE AND TECHNOLOGY
For many, the main stimulant of this growth within Brazilian agriculture, has been the integration of technology into farming practices, throughout the entire value-chain. Maggi confirmed, “Brazil would not be the food producer it is today, without its technological know-how.”
In line with this, the Brazilian Ministry has also announced plans to reduce interest rates by one percentage point a year for ‘priority programmes’ devoted to agricultural technology and supply chain innovation. It is hoped that the culmination of these incentives and cuts, will increase grain production for 2017-2018 to 232 million tons, a 24.3% increase on 2016-2017.
It is clear to see from the above that there are definite opportunities developing for technology and innovation within Brazilian agriculture. As the country’s infrastructure starts to develop, and the national economy recovers further, more and more agricultural stakeholders will be looking for innovative technologies to help them make improvement in efficiency, productivity, and profitability.
In line with this technological revolution, Challenge Advisory, in partnership with the Brazilian Government, have developed the Sustainable Intensification Summit Series.
The Summit will bring together a multitude of stakeholders from government, civil society, co-operatives, farmers, industry bodies, global business and academia to understand and address the challenges Brazil faces in delivering sustainable intensification. A key part of this will be focused on how new technologies can be better integrated, and utilised, throughout the entire agricultural sector.
To find out more about the event, please follow the link below or email info@challenge.