MSc thesis research proposal Department of Geography McGill University Identifying the Role of Crop Production in Land Cover Change in Brazil since 1990
MAJOR DRIVERS OF CROP PRODUCTION AND EXPANSION
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MAJOR DRIVERS OF CROP PRODUCTION AND EXPANSIONAgricultural expansion in Brazil is basically related to crops for export, which is influenced by two factors (i) Changes in consumption patterns of countries that influence the global markets (i.e. China, USA or European Union) and (ii) New national policies that improve investment conditions, open access to investment capital, encourage favorable interest rates, create tax incentives and augment international trade arrangements (USDA 2004; Nepstad et al. 2006). In the 1970’s, during the oil crisis, Brazil stimulated the development of alternative fuels with subsidies to the production of cane-derived alcohol for gasoline, which generated increased sugarcane area in Sao Paulo as well as incentives for exports (Graham et al. 1987; Goldenberg 2006). In this period, world markets, local credit, and incentives rapidly promoted the expansion of export crops, especially soybean in the center south region, with the introduction of more mechanizable agriculture (Graham et al. 1987; Brown et al. 2004). National macroeconomic policies have contributed to the development of the agro-industry in Brazil through the granting of subsidized loans to exporters (Velez 2002). The globalized economy has resulted in the formation of trading blocks such as Mercosur (Brazil, Argentina, Uruguay, Paraguay), NAFTA (the North American Free Trade Agreement), Andean Community of Nations (CAN), and the Central American Common Market. In addition, bilateral agreements have also contributed to more open markets. An example of this is the Free Trade Area for the Americas (FTAA) agreement that facilitates free-trade policies for agricultural exports. This agreement has been favorable for all crops for export, but mainly for sugarcane and soybean (Velez 2002; Burfisher 2004). SoybeanSoy bean (Gycine max) is an important global crop, which is a main ingredient in a quarter of vegetable oils and more than a half of oily flours of the world. Today, in many countries soybean is used as the main source of protein instead of meat, eggs or cheese. Soy oil is also used in domestic foods and as meal to support the poultry industry (Dross 2004). The world production of soybeans is dominated by five countries: United States, Brazil, Argentina, China and India which collectively meet the supply for the majority of world soybean demand (FAOSTAT 2005). This legume originated in East Asia and has been produced in Brazil since 1960 by Japanese migrants. Soybean can be grown on a variety of soils and in a wide range of climates. Although traditionally cultivated in temperate and subtropical regions, this crop is expanding in tropical areas (Dross 2003). Over the last few years, the overall area planted for soybean cultivation in South America has increased across the region led by Brazil, followed by Argentina and also in Paraguay, Bolivia and Uruguay. Soybean production in Brazil was predominant in the south of Rio Grande do Sul and Parana in the 1970s. However the most growth has occurred in the state of Mato Grosso since soybean became an export commodity in 1990’s (IBGE 2005). Historical data from FAOSTAT dating back to 1961 indicates that soybean cultivation started to grow in the middle of 1970s and has considerably increased since 20003 (FAOSTAT 2005) (Fig. 1). Much of the expansion of agricultural exports is due to growth of soybeans and processed soybean product in the export portfolio between the 1970’s and the 1980’s (Graham et al. 1987). |
