The State of São Paulo has the largest and most modern agribusiness system in Brazil and one of the most impressive in the world. With a tropical climate, fertile soil and abundant water, it has 7.9 million hectares of land intended for agribusiness, which represents 32% of its total territory of 24.8 million hectares (IBGE – 2011). With competitive conditions for the sector, it accounts for 22% (US$ 21.9 billion) of total exports from Brazilian agribusiness, according to 2011 figures from the Institute of Agricultural Economics (IEA).
As the largest producer of sugar cane ethanol, the countryside of São Paulo also accounts for 60% of the entire production of orange juice in the world, in addition to having a strong presence in sugar production (304 million tons/year) and beef, with US$ 2 billion in exports. (IEA – 2012).
Agribusiness encompasses a wide range of activities, from basic agricultural products to research applied to biotechnology.
There are several industrial segments that work with food and non-food agricultural and livestock raw materials (wiring and shoes, for example) and suppliers of inputs (fertilizers, tractors, agricultural machinery, pesticides, etc.).
This diversity becomes more pronounced on the state’s economy due to the degree of sophistication of its productive structure and its base of scientific and technological research. It is worth mentioning, in the State economy, the industrialized products (manufactured and semi–manufactured), which account for 81% of exports in the agribusiness sector, with US$ 17.7 billion (IEA – 2012).
Among the main products exported are: sugar cane and saccharide (US$ 9.2 billion), bovid-cattle (US$ 2.6 billion), fruit (US$ 2.3 billion), forest products (US$ 2 billion), coffee and stimulants (US$ 0.9 billion) – (IEA – 2012).
Gross value added production of agriculture
in the State of São Paulo (in US$ thousands)
|Products||São Paulo||Brazil||Part. %|
|Groundnut (in shell)||190,292||225,094||84.54%|
|Rubber (coagulated latex)||256,254||441,546||58.04%|
|From-India tea (green leaf)||678||1,205||56.28%|
|Eggs (thousand dozen)||1,791,023||7,461,767||24%|
|Milk (thousand liters)||1,526,096||26,797,462||5.69%|
Source: Instituto de Economia Agrícola (Institute of Agricultural Economics) (IEA) and IBGE – 2012
Why invest in the Agribusiness in São Paulo?
- Abundance of fertile land and competitive prices.
- Favorable climate, freshwater reserves and good topography.
- Modern infrastructure with roads, airports and ports.
- Strong presence of various industrial segments in the food industry.
- High technology and presence of applied research institutes.
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