An Agribusiness Over R$ 10 Billion: The Brazilian State Of São Paulo

            The primary objective of this paper is to select the leading agricultural activities and to assess theirs distribution among the 40 Rural Development Offices (EDR) in São Paulo State .The specific objectives of this study are: (1) to identify the distribution of the total agricultural productions values of the 28 leading activities among the Rural Development Offices (EDR); (2) to identify the most important leading activity in each EDR, and (3) to classify the leading activities all over the State of São Paulo.

An Overview

            São Paulo comprises an area of 247,898 square kilometers located within the southeast region of Brazil. The state lies between latitude 20 degree and 25-degree south and meridian 44-degree to 53-degree west. Its southeastern border is the Atlantic Ocean and its western border extends nearly to the country of Paraguay.
            A peculiar geographic feature influences the climate – an extensive mountain formation, which is, parallels the coast. A humid-tropical coastal plain lies between this mountain range and the ocean, while the areas to the north and west of the range are characterized by rolling plains and a sub-tropical climate. Seasonal changes are apparent in the plain region of the state, and winter temperatures can fall to freezing levels. Most of the rainfall occurs between October and March with annual precipitation averaging 1,300 millimeters.
            In its native state virtually all of the area now comprising São Paulo was covered with dense forests. For this reason soils have been relatively high in humus and generally quite fertile in many region of the State and jointly with the great climate diversity, production possibilities exist for a wide range of agricultural products.
            A characteristic observed throughout the Brazilian economy has been the spectacular growth of the industrial sector and the long-term agriculture sector decline relative to its national income contribution.
            The Brazilian gross national income has increased from US$ 45,107 million (1970) to U$ 804,182 (1997), while São Paulo State contribution to national income was over 39,00% during 1970-75 and it declined to 35,48% in 1997 (Table I) . São Paulo is still leading as the greatest contributor of value added tax (ICMS) which has steadily been decreasing from 47,31% (1974) to 37,18% (1999) and its contribution was greater than the total contribution of four Brazilian regions: North, Northeast, South, and Center-West. Over and above that São Paulo ICMS participation has been shortening with total levy of ICMS around US$ 39,00 billion.
            When the oil crisis began in 1973, the São Paulo State Government took a remarkable advantage by promoting the PROÁLCOOL program (1975) in order to rearrange the land use toward an alcohol production to replace oil importation, which started a profound change not only in the agricultural sector but also in the industry and service sectors.
            The sugar-cane started to play a more important role in the São Paulo State economy, since it jumped its participation in the leading agricultural product value from 12,16% (1974) to over 30,00% during the 1990s. The sugar-cane yield has been steady 78.5 tons per hectare with a sugar production around 8.0 billion of tons and an alcohol production of 8.86 liters.
            The cropped total area in São Paulo State is around 20 million of hectares and pasture occupies over 10 millions of hectare with 12.7 million of head cattle.
            São Paulo agriculture is outstanding with fertile soils and adequate weather that allows the planting of crops from different climates, such as coffee and wheat.

Results and Conclusions

            This articles relied primarily on planted area and production data supplied by the São Paulo's Secretary of Agricultural, especially the Institute of Agricultural Economics (IEA) jointly with Coordination of Technical Assistance (CATI). The prices for the farmers come from a monthly survey based on 731 strategic point distributed all over the 645 counties (municípios) of São Paulo assorted in 40 Rural Development Offices (EDR). The computer program VALPROD allows the estimation of the production values depending upon the aggregate concern, such as county, EDR, state and others.
            An activity becomes the most important activity (MIA) or the main activity , when one or two activities sum up more than 30.00% EDR production total values. A closer look in figure 1 reveals several informations about activity production total values (VP) among the 40 EDR.The numbers inside of the map identify where the EDR is locate, that is 33- Registro is on the South, 16- Guaratinguetá is on the East and 32-Presidente Wenceslau is on the West. It shows the delineation of the 40 EDR and the letters inside the EDR represents the MIA, that is in the 33-Registro the letters BA are Bananas, the letters inside 35- São João da Boa Vista CT are Coffee and Potato . Figure 1 shows how the 28-activity production total value of the EDRs is distributed along the State according to the grade differentiation. Table II summarizes the descriptive tabulation of the 40 Rural Development Offices (EDR) numbers and leading activities total values. Twelve EDR respond for 49.37% of São Paulo activity production total values and each one of these had a total values over R$ 300 million. Twenty - five EDR are in the range over R$ 100 million to less than R$ 200 million which represent 49.14 % of VP.
            Table III lists the 40-EDR according to the VP and the MIA. The highest-ranking EDR was 35- São João da Boa Vista with a VP of R$618.139 million that represented 6.17% VP. The MIA was Coffee and Potatoes with R$216.662 million that represented 35.05% of this EDR. With a VP over R$303.1 were 03-Araraquara, 06-Barretos, 27-Orlandia, 04-Assis, 22-Limeira, 34-Ribeirão Preto, 36-São José do Rio Preto, 2- Araçatuba, 26-Mogi Mirim and 14-Franca (they were located at Northeast of São Paulo State except 04-Assis and 2- Araçatuba), worthwile to notice that 12 EDRs were responsible for 49.37% of the State production total values.
            Sugar cane was MIA in 15 EDRs, beef was MIA in 9 EDRs, milk was MIA in 5 EDRs and coffee and chicken were MIA in 3 EDRs.
            Table IV shows how the 28 leading activity production total values have evolved in the 1996/97, 1997/98,and 1998/99 cropped years, particularly noteworthy the participation in the last year of eight activities over 5.00% each , that is sugar-cane (23.44%), beef (10.75%), chicken (8.25%), industry orange (6.68%), coffee (6.47%), eggs (6.11%), type C milk (5.90%) and corn (5.57%). The sugar cane has been the dominat activity, although it has decreased from R$ 3.77 billion (1996/97) to R$ 2.35 billion (1998/99, 1 dollar = R$1.85). Worthwhile to notice that sugar -cane is the most important activity in 15 EDR. The beef activity has been the second most important, a total value over R$ 1.07 billion and jointly with sugar-cane represent 34.19% of the São Paulo leading agricultural activity total values. 



TABLE I. São Paulo Total Product Value (SPGNP) Shares by Economic Sectors and Its (SPGNP)
Contribution to Brazilian Gross National Product in the years 1970, 1975, 1980, 1985, 1990 and 1997.
(Percentage)
Sector 1970 1975 1980 1985 1990  1997
Agricultural 5,72 4,98 3,54 5,15 4,58 4,70
Industry 43,85 44,33 44,49 39,79 37,42 36,39
Service 50,43 50,69 51,97 55,06 58,00 58,91
São Paulo Contribution in Brazilian Gross Product  39,43 39,19 37,49 36,12 37,02 35,48
Brazilian Gross Product a 45,017 137,272 250,315 210,844 469,318 804,182
Source: State system of Data Analysis (Fundação Sistema de Análise de Dados –Seade), Gétulio Vargas Foundation (Fundação Getulio Vargas- FGV).
a In US$ billion. Aucthors’s computation.

Figure 1 – Delineation of the 40-Rural Development Offices (EDR) , the Distribution of the Production Total Values (EDR) and Indentification of the Most Important Activities (MIA) in the State of São Paulo,1999. 

Rural Development Offices (EDR): Main Activities:

01 – Andradina 21 - Jaú  
BA
Bananas
02 – Araçatuba 22 - Limeira  
BF
Potato + Beans
03 – Araraquara 23 - Lins  
BL
Beef+Milk
04 – Assis 24 - Marília  
BV
Beans
05 – Avaré 25 - Moji das Cruzes  
CA
Sugar Cane
06 – Barretos 26 - Mogi-Mirim  
CB
Sugar Cane+Beef
07 – Bauru 27 - Orlândia  
CC
Sugar Cane + Coffee
08 – Botucatu 28 - Ourinhos  
CE
Onion
09 - Bragança Paulista 29 - Pindamonhangaba  
CF
Coffee
10 – Campinas 30 - Piracicaba  
CO
Sugar Cane + Eggs
11 – Catanduva 31 - Presidente Prudente  
CS
Sugar Cane + Soybeans
12 – Dracena 32 - Presidente Wenceslau  
CT
Coffee + Potaoes
13 – Fernadópolis 33 - Registro  
FB
Beans + Beef
14 – Franca 34-- Ribeirão Preto  
FL
Chicken + Orange
15 - General Salgado 35 - São João da Boa Vista  
FR
Chicken
16 – Guaratinguetá 36 - São José do Rio Preto  
LJ
Orange
17 – Itapetininga 37 - São Paulo  
LT
Milk
18 – Itapeva 38 - Sorocaba  
OV
Eggs
19 – Jaboticabal 39 - Tupã  
TO
Tomatoes
20 – Jales 40 - Votuporanga      



TABLE II. Descriptive Tabulation of the 40 Rural Development Office (EDR) Numbers and the 28 Leading Activity Production Total Values, 1998/999 Cropped Year.
Range
Rural Development Office (EDR)
Total Production Values
R$ million
Frequency
Percentage
Cumulative % Percentage Cumulative %
400 and over
6
15.00
15.00
28.73
28.73
300-less 400
6
15.00
30.00
20.64
49.37
200-less 300
14
35.00
65.00
34.16
83.52
100-less 200
11
27.50
92.50
14.98
98.49
Less than 100
3
7.50
100.00
1.49
100.00
                   Source: Aucthors’s computation.

Table III The Rural Development Office (EDR) Main Activity (MIA) and 28 Leading Activity Production Values in the EDR (VPj) over São Paulo State, 19978/99 Cropped Year a.

EDR
Main Activities
Main Activity Production Total Values
VP
%
35 - SAO JOAO DA BOA VISTA Coffee +Potatoes
216.662
35,05
618.139
6,17
6,17
03 – ARARAQUARA Sugar-cane
169.148
32,56
519.414
5,19
11,36
06 – BARRETOS Sugar-cane
162.410
33,43
485.802
4,85
16,21
27 – ORLANDIA Sugar-cane
237.759
55,42
429.000
4,28
20,49
04 – ASSIS Sugar-cane + Soybean
229.329
54,38
421.664
4,21
24,70
22 – LIMEIRA Sugar-cane
125.448
31,04
404.033
4,03
28,74
34 - RIBEIRAO PRETO Sugar-cane
269.036
67,45
398.821
3,98
32,72
19 - JABOTICABAL Sugar-cane
143.680
37,89
379.185
3,79
36,51
36 - SAO JOSE DO RIO PRETO Chicken + Industry Orange
113.496
33,47
339.084
3,39
39,89
02 - ARACATUBA Eggs + Sugar-cane
160.576
48,13
333.630
3,33
43,22
26 - MOGI MIRIM Industry Orange + Chicken
98.728
31,60
312.408
3,12
46,34
14 - FRANCA Coffee
134.379
44,32
303.171
3,03
49,37
21 - JAU Sugar-cane
171.929
60,28
285.206
2,85
52,22
17 - ITAPETININGA Potatoes + Beans
97.733
35,29
276.922
2,77
54,98
23 - LINS Type C Milk
115.248
41,87
275.196
2,75
57,73
30 - PIRACICABA Sugar-cane
127.179
46,77
271.922
2,72
60,45
05 - AVARE Beans + Beef
99.324
36,73
270.390
2,70
63,15
11 - CATANDUVA Sugar-cane
91.170
34,47
264.477
2,64
65,79
38 - SOROCABA Onion
80.955
33,07
244.749
2,44
68,23
01 - ANDRADINA Beef
131.008
54,85
238.808
2,38
70,62
28 - OURINHOS Sugar-cane + Coffee
89.928
38,70
232.337
2,32
72,94
18 - ITAPEVA Edible Tomatoes
91.923
41,19
223.133
2,23
75,16
31 - PRESIDENTE PRUDENTE Beef
73.598
34,75
211.777
2,11
77,28
39 - TUPA Eggs
94.757
44,94
210.818
2,11
79,38
08 - BOTUCATU Chicken
70.886
33,62
210.801
2,10
81,49
15 - GENERAL SALGADO Beef
65.921
32,30
204.042
2,04
83,53
09 - BRAGANCA PAULISTA Chicken
73.460
41,34
177.672
1,77
85,30
25 - MOGI DAS CRUZES Eggs
126.610
83,84
151.002
1,51
86,81
10 - CAMPINAS Chicken
50.295
34,10
147.462
1,47
88,28
07 - BAURU Sugar-cane
43.900
30,44
144.205
1,44
89,72
33 - REGISTRO Banana
118.372
82,11
144.157
1,44
91,16
20 - JALES Beef + Type C Milk
49.347
36,57
134.905
1,35
92,51
32 - PRESIDENTE VENCESLAU Beef
67.071
51,19
131.002
1,31
93,82
40 - VOTUPORANGA Beef + Sugar-cane
54.830
42,35
129.450
1,29
95,11
24 - MARILIA Coffee
49.033
38,98
125.764
1,26
96,36
13 - FERNANDOPOLIS Beef + Type C Milk
39.458
36,95
106.787
1,07
97,43
12 - DRACENA Beef + Sugar-cane 
45.366
42,66
106.337
1,06
98,49
29 - PINDAMONHAGABA Type C Milk + Type B Milk
31.197
41,57
75.031
0,75
99,24
16 - GUARATINGUETA Type C Milk
14.698
30,77
47.756
0,48
99,72
37 - SÃO PAULO Banana
14.975
53,64
27.916
0,28
100,00
ESTADO DE SÃO PAULO . . .
10.014.397
100,00
.
                   aValues are in Real(R$), deflated for march 1999.
                   Source: Aucthors’s computations , see text.

TABLE IV. Leading Agricultural Product Total Values in São Paulo State 1996/97, 1997/98 e 1998/99 Crop Years.

.
Total Agricultural Value ( 1,000 R$)1
Total Agricultaral Value (%)
Agricultural Product
1996/97
1997/98
1998/99
1996/97
1997/98
1998/99
Sugar Cane
3771591
3620514</FONT

Data de Publicação: 16/04/2001

Autor(es): Afonso Negri Neto (afonsonegri@yahoo.com.br) Consulte outros textos deste autor
Maura Maria Demétrio Santiago Consulte outros textos deste autor
Alceu Donadelli Consulte outros textos deste autor
Paulo José Coelho (pjcoelho@sp.gov.br) Consulte outros textos deste autor