Paulo Afonso Romano Deputy Secretary for Agriculture, Cattle Raising and Supply

1. TALLER INTERNACIONAL SOBRE LA CRISIS DE SOBREVIVENCIA DE LOS PRODUCTORES RURALES SERVIÇOS DE CLIMA Y TEMPO POLICY OPTIONS FOR COPING WITH AGROMETEOROLOGICAL RISKS AND UNCERTAINTIES Paulo Afonso Romano Deputy Secretary for Agriculture, Cattle Raising and Supply Belo Horizonte-MG JULY/2010

2. INDEX • GROWTH OF WORLD POPULATION • GLOBAL SOCIETY DEMAND • POLITICAL AND SOCIOECONOMIC CHANGES • TRANSITION OF THE AGRICULTURAL STRUCTURE • WORLD PRODUCTION AND CONSUMPTION OF GRAINS • BRAZILIAN EXPORTS • BRAZILIAN AGRIBUSINESS • ECONOMIC GROWTH • PARADIGM SHIFT • NEW DEMANDS OF THE CONTEMPORARY SOCIETY • MANAGERS OF THE RURAL AREA • MINAS GERAIS – SUSTAINABLE AGRICULTURE 2

3. GROWTH OF WORLD POPULATION DEMAND FOR FOOD/ ENERGY/ FIBERS 2 3

4. EU: 7,3% • EUA: 4,5% • Indonesia: 3,5¨% • Brazil: 2,9% • Pakistan: 2,6% • Others: 42,3% GLOBAL SOCIETY DEMAND WORLD GDP 1998US$37,5 1 TRILLION 2008 6,69 billion inhabitants 140 MILLION PEOPLE EXITED THE POVERTY LINE ENERGY AND FOOD 2008US$68,6 TRILLION 60% OF THE POPULATION IN THE CITIES EMERGING COUNTRIES AND DEVELOPING COUNTRIES DEVELOPED COUNTRIES Source: United Nations: World Population Prospects: The 2006 Revision (2007) Design: SEAPA 4 4

5. POLITICAL AND SOCIOECONOMIC CHANGES INDUSTRIALIZATION AND URBANIZATION • MINAS GERAIS 70% of the population of Minas Gerais (7,8 million inhabit.) 14% of the population of Minas Gerais (19,9 million inhab.) Rural population Urban population Source: IBGE – Demographic Censuses of 1950, 1960, 1970, 1980, 1991 and 2000 / PNAD 2006, 2007and 2008. Design: SEAPA 5

6. 125,4% 2.835 1.258 222,3% 1.142 3.681 PRODUCTIVITY (KG/ha) TRANSITION OF THE AGRICULTURAL STRUCTURE • EXPANSION-AGRICULTURAL BORDER TOWARDS CENTRAL BR - CERRADO • PRODUCTIVITY GROWTH: “GREEN REVOLUTION”: • AGRICULTURAL POLICY: SNCR, PGPM, PROAGRO, Research and Rural Extension. BRAZILIAN PRODUCTION OF GRAINS Source: CONAB – Historical series / Monitoring of the Brazilian Harvest – Grains, June, 2010. Design: SEAPA 6

7. WORLD PRODUCTION AND CONSUMPTION OF GRAINS Production x Consumption*: total of the period (2000/01-2009/10) Million tons + 2,2 - 382,0 SUPPLY OF STOCKS + 217,9 Cons. 4.201,0 Prod 3.819,0 Prod 20.956,6 Prod 1.122,9 Cons. 20.954,4 Cons. 905,0 World China Brazil Brazil is the "superpower ready to feed the world " Financial Times - 11/05/2009 Note: * soybean, maize, wheat, barley, oats and rice 7 7 Source: USDA – Design: SEAPA

8. BRAZILIAN EXPORTS RELATIVE PARTICIPATION OF THE AGRIBUSINESS BILLION DOLLARS AGRIBUSINESS EXPORT (US$ BILLION) 43,6 49,5 58,4 71,8 64,7 34,9 TRADE BALANCE (US$ BILLION) 8 * Related to the period from January to June 2010. Source: MDIC- ALICEWEB- Design: SEAPA

9. BRAZILIAN AGRIBUSINESSEMPLOYMENT GENERATION (2007) 90,8 million people Other sectors 63% 33,5 million people Agribusiness 37% Other agribusiness activities 90% Agribusiness Coffee 10% Provides jobs for 3,5 million people 9 9 Fonte: IBGE / FIPE - Elaboração: Seapa

10. ECONOMIC GROWTH • AGRICULTURE: RESOURCES TO FUND DEVELOPMENT INCOME TRANSFERENCE AGRICULTURE INDUSTRY IMPOVERISHMENT OF PEOPLE AND NATURAL RESOURCES 10 Design: SEAPA

11. PARADIGM SHIFT PARADIGM OF PRODUCTIVITY PARADIGM OF SUSTAINABILITY DEMAND OF FOOD, ENERGY, FIBERS, ENVIRONMENTAL GOODS AND SERVICES SOCIETY DEMAND OF FOOD ENERGY FIBERS SOCIETY NATURAL RESOURCES HUMAN ACTIONS NATURAL RESOURCES HUMAN ACTIONS PRODUCTION SYSTEM MANAGER OF THE RURAL AREA RURAL PRODUCER RURAL PRODUCER 11 Design: SEAPA

12. NEW DEMANDS OF THE CONTEMPORARY SOCIETY COMBINATION OF THE DESIRE FOR ECONOMIC GROWTH AND THE ETHICAL NEED FOR THE MITIGATION OF POVERTY, WITH SUSTAINABLE PRODUCTION ECONOMIC GROWTH POVERTY MITIGATION SUSTAINABLE PRODUCTION 12 Design: SEAPA 12

13. MANAGERS OF THE RURAL AREARESPONSIBLE FOR THE GENERATION OF • FOOD AND FIBERS • RICHNESS • FOREIGN EXCHANGE • ENERGY • JOBS • ENVIRONMENTAL GOODS ANDS SERVICES • SOIL CONSERVATION • BIODIVERSITY CONSERVATION • CO2 REMOVAL OUTROS ESTADOS MG • WATER PRODUCTION AND QUALITY • CULTURAL GOODS AND VALUES 13 Elaboração: SEAPA 13 Design: SEAPA

14. MANAGERS OF THE RURAL AREARISKS AND UNCERTAINTIES • CLIMATE CHANGES CONFRONTATION POLICY • RURAL INSURANCE • MINIMUM PRICE POLICY • NATIONAL PLAN OF IRRIGATION • TECHNOLOGY ADJUSTMENT – NEW VARIETIES • PRODUCTION SYSTEMS – MITIGATION OF IMPACTS • INDICATORS OF LIQUID ENVIRONMENTAL IMPACTS • ENVIRONMENTAL SERVICES– AGRICULTURAL INCOME 14 Elaboração: SEAPA 14 Design: SEAPA

15. MINAS GERAIS SUSTAINABLE AGRICULTURE 15 Design: SEAPA 15

16. CERTIFICA MINAS INCREASED PRESENCE OF THE AGRIBUSINESS OF MINAS GERAIS TO MEET THE DEMANDS OF NATIONAL AND INTERNATIONAL MARKETS CERTIFICATION OF THE ADEQUACY OF COFFEE-PRODUCING PROPERTIES TO GOOD PRODUCTION PRACTICES, IN COMPLIANCE WITH THE DEMANDS OF THE WORLD MARKET, ALLOWING THE COFFEE PRODUCED IN MINAS GERAIS TO REACH NEW MARKETS. . 2009: 1.026 CERTIFIED PROPERTIES • PROJECTS – COORDINATION AND EXECUTION: Seapa/IMA /Emater - MG Design: SEAPA 16

17. CERTIFICA MINAS INCREASED PRESENCE OF THE AGRIBUSINESS OF MINAS GERAIS TO MEET THE DEMANDS OF THE NATIONAL AND INTERNATIONAL MARKETS • BOVINE CATTLE RAISING - TRACING ASSURANCE OF BEEF SAFETY, WITH THE ADDITION OF VALUE TO THE PRODUCT 2009: 1.757 PROPERTIES ABLE TO PROVIDE ANIMALS FOR EXPORT SLAUGHTERHOUSES Elaboração: Seapa • PROJECTS – COORDINATION AND EXECUTION: Seapa/IMA /Emater - MG 17 Design: SEAPA

18. FOREST DEVELOPMENT PROMOTION OF THE CULTIVATION OF FORESTS PLANTED IN RURAL PROPERTIES, AIMING AT INTEGRATING AGRICULTURAL AND CATTLE RAISING ACTIVITIES 2009: 885 DEMONSTRATIVE UNITS INSTALLED INTEGRATION OF CROP – CATTLE RAISING – FOREST INTEGRATION OF AGRICULTURAL AND CATTLE RAISING ACTIVITIES IN THE SAME AREA, COMBINING SEVERAL TYPES OF PLANTED FOREST, PASTURE AND GRAINS. 2008 - 2009: 230 DEMONSTRATIVE UNITS INSTALLED • PROJECTS – COORDINATION AND EXECUTION: Seapa/IMA /Emater - MG Elaboração: Seapa 18 18 Design: SEAPA

19. STATE OFFICE FOR AGRICULTURE, CATTLE RAISING AND SUPPLY Rua Cláudio Manoel, 1205, Belo Horizonte – MG CEP: 30140 -100 19 19