The Expansion of the Main EU Competitors' Supply Chains: Brazil's Case

The Expansion of the Main EU Competitors' Supply Chains: Brazil's Case

Cornelia-Florentina Alboiu (Casa Academiei, Bucharest, Romania), Dan-Marius Voicilas (Casa Academiei, Bucharest, Romania) and Iuliana Ionel (Casa Academiei, Bucharest, Romania)
Copyright: © 2014 |Pages: 14
DOI: 10.4018/ijsem.2014040103


The objective of the article is to make an in-depth analysis of the main Brazilian agri-food supply chains, including a country overview, having given the fact that in recent years Brazil has become one of the most important competitors of the European Union (EU). The subject is challenging due to the fact that EU must take into consideration the evolution of the most important competitors in order to adapt its policies and to create the economic framework for a stable and long run growing main supply chains. The article presents a brief country overview including its infrastructure, the importance of agri-food chain in Brazil, the evolution of the main supply chains (beef, poultry and pork), and makes a brief analysis of the governance structures and discuss the economic relationships. The analysis is accompanied by some facts regarding the country's specific political, social and cultural influences on the chain's performance. The article concludes that Brazil has become one of the most important competitors of the EU ranking with its supply chains as a major competitor for the EU supply chains. The analysis will help in the formulation of adequate public policies regarding the EU regulations and to increase EU competitiveness.
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Agri-Food Sector Overview

Agricultural area in Brazil is extremely large with 275 million hectares, being surpassed barely by Australia, China, and the United States in 2011. Arable land represents only 72 million ha, and about 5.4 million ha are equipped with irrigation facilities (FAO 2011). In the last decades, Brazil made great efforts to shift from a traditional farming system to a farming system based on large-sized farms that apply modern technologies. The Brazilian Institute of Geography and Statistics reports the number of farms in Brazil at 5.2 million. The number of small subsistence farms with less than 10 hectares is still quite large, accounting for close to half of the total (49.4%) but only 2.2% of the area farmed. Farms larger than 1,000 hectares represent only 1% of all farms, but 45% of the area farmed. Grains and livestock products are typically produced on large scale farms, whereas staple commodities are produced on small family farms.

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