Multimedia Mania/abacus-multimedia-mania.iso/dp/0013/00135.txt

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$Unique_ID{bob00135}
$Pretitle{}
$Title{Brazil
Chapter 3E.   Land Use}
$Subtitle{}
$Author{Darrel R. Eglin}
$Affiliation{HQ, Department of the Army}
$Subject{production
percent
1970s
million
coffee
exports
roughly
land
soybeans
crops
see
pictures
see
figures
}
$Date{1982}
$Log{}
Title:       Brazil
Book:        Brazil, A Country Study
Author:      Darrel R. Eglin
Affiliation: HQ, Department of the Army
Date:        1982

Chapter 3E.   Land Use

     Land use in Brazil is characteristically extensive; farmers realize gains
in production by bringing more land under cultivation rather than using land,
labor, or capital more intensively. Of the more than 300 million hectares in
farmland in 1975, less than 40 million hectares were in crops and another 166
million hectares were in pasture, of which roughly one-quarter was improved.
Most of the increase in agricultural output since 1960 has been brought about
by increases in the area in crops; yields per hectare have generally held
constant. In the 1970s, however, yields did improve for soybeans, cocoa, and
some fruits and vegetables, while they declined for several major
foodstuffs-manioc, beans, wheat, and rice among them. Corn, accounting for
roughly one-quarter of cropland and second only to soybeans in value in the
late 1970s, is typical of the pattern; yields fluctuated little in the 1970s
while a gradual increase in planting generated a minimal 1.6 percent annual
growth in production. Brazil's vast land reserves have permitted extensive
land use without seriously eroding output. Frontier land brought under
cultivation in the 1960s and 1970s, however, was further removed from the most
densely settled regions. Making these regions effective food suppliers to
urban areas involved substantial costs in infrastructure (see Land Tenure,
this ch.).

     There has been a distinct dichotomy in agricultural technology among
farmers. Improved inputs have been largely limited to prosperous farms
geared toward export crop production. They have enjoyed significant research
funding, access to credit and modern inputs, and developed infrastructure.
Traditional foodstuff items have been largely neglected. Until the 1970s they
were infrequently the subject of agricultural research, and those who grew
them rarely had access to improved seed, fertilizer, or pesticides. Beginning
in the 1970s the government made efforts to redress the balance. Crop-specific
research centers for, among others, rice, beans, manioc, fruit, corn, and
sorghum, were started. Research and funding of extension services grew by
nearly 25 percent annually in the 1974-78 period. There were attempts to
target funds to the poorer Northeast. Nonetheless, in the late 1970s the use
of modern inputs remained heavily concentrated among farms geared to export
crop production, especially those in the South and Southeast. Soybeans,
sugarcane, wheat, and coffee accounted for approximately 60 percent of the
fertilizer used; on a regional basis the North and Northeast used only 10
percent of the fertilizer. Sao Paulo and Rio Grande do Sul in 1977 had half
of the country's tractors, Parana and Minas Gerais another 29 percent. Ninety
percent of the area planted in wheat used improved seeds, and 70 percent of
that planted in soybeans did so; at the other end of the scale, less than half
the area planted in corn used improved seed varieties, and only 4 percent of
the acreage in beans did so.

Crops

     Farm production rose by an estimated 5 percent in 1981 (see table 14,
Appendix). In late 1982 the government projected a decrease of similar
magnitude in that year's harvest. Coffee and soybeans registered the steepest
drops; experts expected coffee production to be down by one-half, and
soybeans, by some 14 percent. Since the 1950s there has been an increasing
shift to manioc at the expense of most other foodstuffs. Manioc is the only
crop to show consistent gains as a percentage of output. From the early 1950s
through the late 1970s cereals declined in relative terms. Both corn and rice
production suffered as a result of the wheat incentive program. Changes
within those crops grown primarily for export have been more striking. Export
crops' share of agricultural output (by value) fluctuated from roughly half
in the early 1950s, to scarcely more than one-third in the mid-1960s, and
back to one-half in the late 1970s. The largest change was the expansion in
soybean production coupled with the relative decline of coffee and cotton
(see Agricultural Exports, this ch.). Indeed, soybeans accounted for most of
the export sector's overall growth, as well as differences between the growth
rates of export crops and domestic foodstuffs. From 1955 through 1979 the
average annual growth rate (in value) of foodstuffs declined by one-third,
while that of exports more than doubled. Without soybeans, however, export
crop growth was negligible, and the growth rate of total agricultural
production dropped by four-fifths.

     Food crops tend to be grown by smaller landholders, and their cultivation
is dispersed. Regional specialization is limited. Corn output is slightly
concentrated in the Southeast and South, rice in the South and, to a lesser
degree, in the Center-West. Beans are grown everywhere, but the South exports
a surplus to other regions. Manioc likewise is found everywhere, but
especially in the Northeast. Roughly 70 percent of corn, 75 percent of beans,
and 80 percent of manioc are grown on holdings of less than 50 hectares. In
the South rice is grown on large holdings, but in the Center-West half of all
production comes from holdings of less than 50 hectares.

     Although coffee production declined generally in the 1970s, coffee
growers enjoyed high earnings. A decline in volume contributed to higher
prices; real prices for coffee growers moved upward at an annual average of
approximately 13 percent from the mid-1960s to the early 1980s. At the same
time, the portion of processed coffee exported grew by leaps and bounds.
Planting shifted from the freeze-vulnerable regions of Parana into Minas
Gerais (government incentives aided in the process). There was also
significant modernization of the sector; new varieties and improvements in
tree care and processing equipment helped offset the drop in the area planted.
Allowing for annual weather-related variation, productivity rose substantially
from 401 kilograms per 1,000 trees in 1960 to 708 kilograms in 1978. The
average age of coffee trees dropped.

     Cotton, although its drop in export earnings was more precipitous, showed
similar trends. Raw cotton declined while yarn and fabric exports absorbed
the output of cotton. High prices for textiles (some two and one-half times
those for raw cotton in the 1970s) facilitated the switch. By the early 1980s,
however, policymakers feared rising tariffs against textiles. Nonetheless,
cotton declined in yields and profitability in the 1970s. Cotton lost land to
sugarcane and soybeans alike.

     Cocoa, like coffee, benefited from modernization in the 1960s and 1970s.
In 1965 Brazil represented 8 percent of world cocoa production; by 1978 its
share was nearly 20 percent. In common with other export crops, there has
been a shift toward processed cocoa derivatives. Prices rose throughout the
decade; farmers reaped substantial profits, the size of the planted area
enlarged, and yields improved. Production, heretofore limited to Bahia,
expanded into Para and Rondonia. The mini-boom raised questions as to whether
Brazil's increased output might not further depress world prices, which were
expected to weaken in any event in the mid-1980s.

     Soybean expansion outstripped that of all other crops. For roughly a
decade (1966-77) the area harvested grew at an astounding 31 percent annually;
by the late 1970s soybeans ranked second to corn in terms of land use.
Production rose from scarcely more than 1 million tons in 1969 to 15.5 million
tons in 1981. Yields as well increased by roughly 50 percent between 1967 and
1981. The most substantial increases came in the early 1970s; thereafter,
output and acreage grew less rapidly. Production spread northward from Rio
Grande do Sul into Parana and Sao Paulo. The shift helped mid- to large-sized
farms beset by the decline in coffee production in those regions. The drop
projected for 1982 reflected a combination of drought, prices, and a drop in
the area planted.

Livestock

     The country has one of the largest livestock populations in the world;
in 1980 the herd included some 91 million cattle, 36.5 million swine, 18
million sheep, and nearly 400 million poultry (see table 15, Appendix).
Except for minor annual fluctuations related to herd replacement and market
forces, most livestock have increased steadily since roughly 1920. From 1940
to 1980 cattle herds have grown at an average 3 percent annually, swine at
1.8 percent, and poultry at a hefty 5.5 percent (The most substantial rates
for poultry came in the 1960s and 1970s.) Cattle herds are concentrated in
Minas Gerais, Rio Grande do Sul, Goias, Mato Grosso, and Sao Paulo (see
table 16, Appendix). European breeds, such as Hereford and Angus, are raised
in the southern regions; zebus are more common in tropical climates. Holsteins
are the predominant dairy cattle. The growing poultry industry is centered in
the Southeast and South, principally Sao Paulo. Indeed, in 1979 that state's
poultry accounted for nearly 20 percent of all chickens by value. Livestock
production, particularly cattle raising, has traditionally relied on vast
reserves of pastureland; during the 1970s, however, the use of improved
rations and forages did increase.

     Beef and veal production in the mid-1970s and early 1980s fluctuated
between 2.1 and 2.5 million tons annually, Production in 1981 and projected
production for 1982 registered increases of approximately 5 and 10 percent,
respectively. Experts attributed the rise to ranchers' slaughtering more
animals  than herd maintenance would normally require. Experts expected that
the trend would bottom out in 1982 and that ranchers would begin rebuilding
their herds in 1983. Government incentives fueled exports; in contrast
with most agricultural products, fresh beef exports grew more rapidly than
processed items. Pork production rose until 1980, when a 35-percent increase
in the farmers' minimum price combined with consumers' fast-eroding disposable
income. Production dropped slightly in 1981, and the decline was expected to
continue through 1982 (see table 17, Appendix).

     Poultry was the fastest growing sector of livestock production.
Production increases continued into the 1980s at a slackening pace, with an
average annual growth rate through 1982 estimated at 13 percent. Exports
played a major role in expanded production; their share in production grew
from less than 1 percent to 21 percent in six years (1975-81). The Middle
East and Soviet Union were the chief markets.

     Dairy production was hampered by government price controls and the
decline in consumers' purchasing power in the early 1980s. The general impact
of retail price controls on fluid milk has been to encourage dairy farmers
to shunt milk into processed dairy products and to limit overall investment in
the dairy herd. The portion of milk destined for fluid milk consumption was
50 percent in 1975, when price controls were instituted; it declined to 33
percent by 1978. Even a partial freeing of retail milk prices in April 1982,
coupled with producer price increases of roughly 60 percent in 1981, helped
little. Dairy producers contended that prices were still too low. Production
of milk expanded slightly; that of other diary products remained steady.
Sales were reportedly down by nearly one-third in 1981.

Forestry and Fishing

     Brazil has one of the largest forest reserves in the world. Most stands
are in the Amazon Basin and were almost wholly inaccessible until the
highway building of the 1970s. Lumbering is generally viewed as one of the
region's most lucrative prospects. The Amazon forest includes literally
hundreds of varieties of tropical hardwoods. The South has extensive
stands of softwoods, principally Parana pine. Cultivated trees include
eucalyptus, tropical pine, Gmelina (Queensland beech), and the black acacia.

     Firewood and charcoal are used extensively in Brazil. Charcoal is used
in industry as well as for home cooking and heating. Flue-cured tobacco
places great demands on the wood reserves of the South. In the late 1970s
the country lumbered between 55 to 60 million cubic meters of logs and some
155 million cubic meters of firewood annually. Charcoal production stood
at approximately 2.5 million tons a year. Most charcoal and firewood came from
natural stands. Cultivated and natural forests contributed about equally
to lumbering.

     Exports expanded in the late 1970s (see table 18, Appendix). From 1975
through 1980 the total value of exports quadrupled. Growth was particularly
fast paced from 1978 through 1980, when increases in value averaged nearly
60 percent each year. Processed and derived products enjoyed the highest
growth rates; they increased their share of total value from roughly
two-fifths to two-thirds during this period.

     The country's forests offer numerous extractive products. Rubber,
carnauba palm wax, Brazil nuts, mate, babassu palm oil, and piassava (fibers
used in ropes, mats, and the like) are the main commercial products,
representing some 80 percent of the value of all extractive products in 1977.
Rubber production, centered in Amazonas and Acre, was 10,651 tons in 1977 and
was valued at roughly Cr$156 million. The carnauba palm, native and unique to
the country, grows in the Northeast. Over 90 percent of total production and
value comes from Piaui, Ceara, and Rio Grande do Norte. The wax, combed from
the plant's leaves, is used in the manufacture of phonograph records, paint,
candles, polishing pastes, and colored waxed papers. Soap manufacture uses
babassu oil; Maranhao accounts for the lion's share of production. The
government designated the babassu to play a subsidiary role in the energy crop
program in 1975. Mate leaves, used in a tea-like beverage popular in southern
Brazil, Argentina, Paraguay, and Uruguay, is produced in Rio Grande do Sul,
Santa Catarina, and Parana. Black acacia trees are grown commercially in Rio
Grande do Sul for the tanning extract found in the bark.

     The country's long coastline and extensive river systems offer a
potentially rich fishing resource. In the early 1980s the fishing industry
remained poorly developed, and production was geared to the domestic market.
Annual exports were roughly 25,000 tons, valued at the equivalent of
approximately US$100,000 in the late 1970s. The best saltwater fishing is off
the coast of Rio Grande do Sul; that state exports fish to Rio and the
Northeast. Although the South continued to be the largest producer by volume,
the Southeast and Northeast played a significant role as well (see table 19;
table 20, Appendix). Fish stocked in irrigation reservoirs provided a portion
of the Northeast's catch. The giant pirarucu, found in the Amazon and other
large rivers, was salted like cod and sold throughout the country.