BRAZIL: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Olga MELYUKHINA

Email: Olga.MELYUKHINA@oecd.org

Tel: (33 1) 45 24 95 61   Fax: (33 1) 44 30 61 19

Definitions and sources

GENERAL NOTES

Country Total Support Estimate (TSE)and derived indicators in Table 1 cover all agricultural commodities produced in the country.

Market Price Support (MPS) and Consumer Support Estimate (CSE) by commodity in Tables 2.1 to 2.11 are calculated for the following commodities: wheat, maize, rice, oilseeds (soybeans), sugar cane, cotton, coffee, milk, beef and veal, pigmeat, and poultrymeat. Definitions are provided only for basic data sets from which all the other data sets in these tables are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Level of production and consumption, producer prices and reference prices for all products, as well as budgetary transfers are on a calendar year basis.

All values presented in the tables are expressed in Brazilian real (BRL).

 

TABLE 2. MARKET PRICE SUPPORT AND CONSUMER SUPPORT ESTIMATE

Definitions:

I.     Level of production

Wheat, maize and oilseeds (soybeans): Total domestic production. [1]

Rice: Total domestic production in paddy rice equivalent. [1]

Sugar cane: Total domestic production in sugar cane equivalent. [1]

Cotton: Total domestic production in lint equivalent. [9, 10]

Coffee: Total domestic production in green bean equivalent. [8]

Milk: Total production of milk from dairy cows. [8]

Beef and veal, pigmeat and poultry: Gross indigenous production in carcass weight. [7, 9]

II.   Producer prices

Wheat, maize, rice, oilseeds (soybeans) and sugar cane: Annual average of monthly prices received by producers (all qualities). [2].

Cotton: Annual average of monthly prices received by producers (all qualities) for cotton in bolls, divided by 0.4 for conversion into lint equivalent price. [2]

Coffee: Annual average of monthly prices received by producers (all qualities) for dry coffee cherries, divided by 0.5 for conversion into green bean equivalent price. [2]

Milk: Annual average of monthly prices received by producers for cow milk. [2]

Beef and Veal: Annual average of monthly prices received by producers for all categories of adult bovine animals for slaughter, carcass weight. [2].

Pigmeat: Annual average of monthly prices received by producers for all pigs for slaughter, divided by 0.7 for conversion into carcass equivalent price. [2].

Poultry: Annual average of monthly prices received by producers for live chickens, divided by 0.77 for conversion into carcass equivalent price. [2].

III.  Level of consumption 

Wheat, maize, rice, and oilseeds (soybeans): Total domestic consumption (total production, plus import, minus export, plus change in stocks). [7, 9].

Sugar cane: Total domestic consumption (total production, plus import, minus export, plus change in stocks), of white sugar and ethanol converted into sugar cane equivalent. [8].

Cotton: Total domestic consumption in lint equivalent (total production, plus import, minus export, plus change in stocks). [9, 10]

Coffee: Total domestic consumption in green bean equivalent (total production, plus import, minus export, plus change in stocks). [8]

Milk: Total domestic use of cow milk in milk equivalent (total production, plus import, minus export, plus change in stocks). [8].

Beef and veal, pigmeat and poultry: Total domestic use (total production, plus import, minus export, plus change in stocks), carcass weight. [7, 9].

IV.  Reference prices

Wheat: F.o.b. export unit values of Argentinean Trigo Pan. [15]

Maize: F.o.b. export unit values of Argentinean Rosario maize. [15]

Rice: average Brazilian import unit values of rice in husk, paddy or rough (NCM 1006.10.92). [14]

Oilseeds (soybeans): average unit values of Brazilian exports of soybeans, whether or not broken (NMC 1201.00.90) [14], net of handling and transportation costs [2, 12].

Sugar cane: average unit values of Brazilian exports of cane sugar, refined, not containing added flavouring or coloured (NCM 1701.99.00) [14], net of processing, handling and transportation costs, converted into sugar cane equivalent [2, 6, 12].

Cotton: average unit values of Brazilian imports of cotton, not carded nor combed (NCM 5201.00.10, 5201.00.20, and 5201.00.90) [14], net of ginning, handling and transportation costs [2, 12].

Coffee: weighted average of ICO indicator prices for Brazilian Natural Arabica and Robusta coffee [16], with weights representing the shares of Arabica and Robusta coffee in total Brazilian coffee production. This weighted average price is net of cleaning, handling and transportation costs [12]

Milk: border prices of butter and SMP converted into a milk equivalent border price, using technical coefficients minus a processing margin, calendar year. The border price of butter is the Brazilian import unit value of butter (NCM 0405.00.00 – Butter and other fats and oils derived from milk), the border price of SMP is the Brazilian import unit value of skimmed milk powder (NCM 0402.10.00 – Milk powder < 1.5% fat) [13, 17]

Beef and Veal: average unit values of Brazilian exports of meat of bovine animals, boneless, fresh and chilled (NCM 0201.30.00) and frozen (NCM 0202.30.00) [14], converted into carcass equivalent price and net of processing, handling and transportation costs. [2, 11]

Pigmeat: average unit values of Brazilian exports of meat of swine, frozen (NCM 0203.29.00) [14], converted into carcass equivalent price and net of processing, handling and transportation costs. [2, 11]

Poultry: average unit values of Brazilian exports of meat of chickens and roosters, not cut in pieces, frozen (NCM 0207.12.00) [14], net of processing, handling and transportation costs. [2, 11]

Sources:

[1] Brazilian Institute of Geography and Statistics (IBGE).

[2] Getulio Vargas Foundation (FGV) database.

[3] Statistical Yearbook of Rural Credit, BACEN, various years.

[4] Integrated System of Financial Administration of the Federal Government (SIAFI).

[5] Information directly provided by the National Treasury of Brazil.

[6] Information directly provided by the Brazilian Ministry of Agriculture and Food (MAPA).

[7] OECD Aglink data base.

[8] FAO database – FAOSTAT.

[9] National Food Supply Company (CONAB).

[10] USDA – Economics and Statistics System: The Foreign Agricultural Service's Production, Supply and Distribution - PS&D.

[11] Institute of Agricultural Economics Research (IEA), agricultural wholesale prices data bank.

[12] ESALQ/BM&F database of agricultural wholesale prices and transportation tariffs.

[13] COMTRADE database.

[14] MDIC-ALICE data base, Ministry of Industrial Development and Trade.

[15] International Grains Council (IGC).

[16] International Coffee Organisation (ICO).

[17] OECD PSE/CSE database.