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Developments in sustainable AgriTech, crucial to Brazil's
agricultural revolution, could hold the answer to many of the UK's
sustainability challenges, while promoting bilateral trade
post-Brexit.
This was among the key outcomes of the AgriSustainability Talks,
a high-level summit hosted by the Embassy of Brazil, in partnership
with from the Brazilian Trade and Investment Promotion Agency
(Apex-Brasil), held in London during February, ahead of a UK-Brazil
Joint Economic & Trade Committee (JETCO) event scheduled for
later this year.
Latest data from Apex-Brasil shows that Brazilian agribusiness
and food and beverage (F&B) exports rose by 18.4% and 16.8%
respectively in 2021. While positive, these growing trade figures
raise questions about how both countries will balance the rising
demand for food, drink, and agribusiness products with their
ambitious sustainability and carbon reduction goals.
In 2021:
Agribusiness exports by volume from Brazil increased by 18.4%
while food and drink exports rose by 16.8% in 2021.
Egg (81.5%), cotton (23%) and pork (11%) exports experienced
volume increases, while poultry (25.7%), fruit (20%) and beef (9%)
all saw increased revenue.
Brazil's fruit sector reached £736 million in 2021, with 1.01
million tonnes of fruit exported, an 18% increase on the previous
year.
Between January and November 2021 7.7 million litres of
Brazilian fine wines were shipped to 53 countries, an increase of
91.18% on the previous year's figures. Sparkling wine sales saw an
increase of 32% in 2021, and revenues from cachaça hit £9.5
million.
Tech innovation
Integrated crop-livestock-forestry (ICLF) and no-till
agricultural practices are just two examples of research-based
initiatives that have resulted in the massive reduction of
Brazilian agriculture emissions. The extension of the ICLF system
by some 6 million hectares has resulted in the sequestration of
21.8 million additional tonnes of CO2 equivalent, the same as
removing 4.7 million cars from the road, and Brazil will extend
ICLF to a total 16.5 million hectares of farmland by 2030 under the
Paris agreement.
No-till practices are used by some 45% of Brazilian farms and
contribute to the minimisation of GHG emissions by up to 40%.
Integrated crop-livestock-forestry (ICLF) and no-till agricultural
practices are just two examples of research-based initiatives that
have resulted in the massive reduction of Brazilian agriculture
emissions.
While that focus on embedding best practices remains,
innovations in technology are significantly enhancing the potential
for much greater gains and advances in delivering more sustainable
agriculture. According to Embrapa, the Brazilian state agriculture
research corporation, the number of agritechs in the country surged
by 40% to 1,574 between 2019 and 2020.
In 2021, Brazil became the first country to approve the use of a
feed additive that cuts methane emissions from cattle by some 55%,
so with the potential of more than halving the country's beef
sector methane footprint. This is a huge development as methane has
a carbon footprint about 30 times that of CO2.
Brazil has also been deploying agricultural drones for better
forestry management and control. The summit heard that Climate
Resilient Agriculture (CRA), regenerative farming, methane
inhibiting cow feed, ethanol-based vehicle fuel, and nitrogen
fixation were all AgriTech breakthroughs currently championed by
Brazil, while improved data capture and governance were celebrated
for improving the veracity of sustainability claims by farmers,
enabling a move from subsidy-led to carbon-credit-led farmer
incentives.
According to Francisco Jardim, Managing Partner of Latin
America's largest AgriTech venture capital firm SP Ventures, COVID
has been a great accelerator, driving sustainable practices, as
well as getting farmers to purchase equipment online, and giving
birth to a booming agriculture digital and FinTech scene.
Trade relations
In light of the UK Government's 'Global Britain' agenda, the
focus on striking new free trade agreements with major global
economies is a key priority for the current UK administration in
2022. Penny Mordaunt, UK Minister of State for Trade Policy, has
indicated the Department for International Trade's strategic goal
to increase trade ties with Brazil ahead of the 12th JETCO that
takes place later this year.
The significant contributions the agri-business sector brings to
both economies were a key theme to emerge from the conference, with
a clear call emerging for both countries to build on the successes
achieved to date in advancing the sector's scientific and
technological capabilities, as well as exchanging best practice to
guide future trade bonds and partnerships.
Farm ministry DEFRA's Gavin Ross spoke of the UK's hopes to
"fundamentally change the approach, moving from paying farmers, to
instead buying environmental benefits through three schemes: the
Sustainable Farming Incentive, Local Nature Recovery and Landscape
Recovery", ambitions that have parallels with the "great progress
being made in Brazil to recover 90 million hectares of degraded
pasture" mentioned by EMBRAPA's President Celso Morretti, as he
outlined some of the 200 research projects currently underway by
more than 40 research centres across Brazil.
ABC
Brazil's reputation in sustainable agriculture is being
bolstered by several government and industry initiatives to support
the agri-business sector in the country. Tereza Cristina Corrêa da
Costa Dias, Brazil's Minister of Agriculture, Livestock and Food
Supply is currently enacting a strategy - the Plan for Adaptation
and Low Carbon Emission in Agriculture ('The ABC Plan') - which
harnesses new technologies and technical skills to help Brazil meet
key sustainability objectives in agriculture.
The plan is promoting low-carbon agriculture practices and has
already helped to recover 26.8 million hectares of degraded
pastureland for agriculture use - an area significantly larger than
the UK.
Global crop science giants such as BASF, Bayer and Syngenta are
all active in this process, with animal health and nutrition
companies such as DSM, supported by local Brazilian firms.
