Agricultural Growth in Brazil in the Period 1999-2004: Outburst of Soybeans and Livestock and its Impact on the Environment
IPEA Discussion Paper No. 1103
30 Pages Posted: 9 Aug 2005
Date Written: July 2005
This paper analyses the Brazilian agricultural growth since January 1999, when a new exchange rate policy was adopted by the country. The analysis focuses on the behavior of the exchange rate and international commodity prices throughout the period 1999-2004. It is also analysed the behavior of cropped area in this recent period, with the conclusion that there has been a fast increase in area planted with grains in the agricultural years 2001/2002, 2002/2003 and 2003/2004, due almost entirely to the growth of soybeans area. The paper proposes that this expansion of area planted with soybeans was based preponderantly on the conversion of pastures. It is also suggested that expansion of soybeans should not be seen as antagonistic to the environmental policy, specially in what respects the protection of the Amazon forest.
Keywords: Soybeans, deforestation, pasture conversion, livestock
JEL Classification: Q18
Suggested Citation: Suggested Citation