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

See all articles by Antonio Salazar P. Brandao

Antonio Salazar P. Brandao

Universidade do Estado do Rio de Janeiro (UERJ)

Gervasio Castro de Rezende

Institute of Applied Economic Research (IPEA)

Roberta Wanderley da Costa Marques

Institute of Applied Economic Research (IPEA)

Date Written: July 2005

Abstract

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

Brandao, Antonio Salazar P. and Castro de Rezende, Gervasio and da Costa Marques, Roberta Wanderley, Agricultural Growth in Brazil in the Period 1999-2004: Outburst of Soybeans and Livestock and its Impact on the Environment (July 2005). IPEA Discussion Paper No. 1103, Available at SSRN: https://ssrn.com/abstract=766124 or http://dx.doi.org/10.2139/ssrn.766124

Antonio Salazar P. Brandao

Universidade do Estado do Rio de Janeiro (UERJ) ( email )

Rio de Janeiro, 22030-000
Brazil

Gervasio Castro de Rezende (Contact Author)

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil
+55 21 3804 8000 (Phone)
+55 21 2240 1920 (Fax)

Roberta Wanderley Da Costa Marques

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

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