Rural Villages Development Program
Rural Villages Development Program
PG.7 Queiroz Galvão in Sub-Saharan Africa
9
Rainfall Patterns in Sub-Saharan Africa
53
10
Average Annual Precipitation in Africa
55
Insolation
57
rural villages Development program
13
Water Resources
59
Aims of the Rural Villages Development Program
14
Major River Basins of Africa
61
Overview – Rural Villages Development Program
16
Why to Invest in Agriculture
63
Social Infrastructure
18
Employment Generation
65
Transport Infrastructure
20
Poverty Reduction
67
Production Infrastructure
22
Attraction of Foreign Direct Investment
71
The Mandala Farming System
24
Public Sector Engagement in Agricultural Investment Promotion in Africa
79
Production Infrastructure – Production of Food And Cash Crops
26
Global Food Prices and Demand
81
Energy Infrastructure
28
Creation of Sophisticated Agro-Industry Supply Chains that Multiply Positive Impacts Upstream and Downstream of Farms
85
The Case of Brazil
87
Associated Industries
91
QUEIROZ GALVÃO´S EXPERIENCE WITH INFRASTRUCTURE PROJECTS SELECTED PROJECTS WITH BIG IMPACTS ON AGRICULTURE
93
General Overview – Conceptual Project of the Rural Villages Development Program
30
Success Cases – Implementation and Management of Large Agricultural Infrastructure Schemes
32
Next Steps
40
THE POTENTIAL OF AGRICULTURE IN AFRICA
43
Infrastructure for Irrigation Schemes
96
Availability of Arable Land
44
Valle De Quíbor Agricultural Project – Venezuela
98
Favorable Climatic Conditions
50
Highways
102
Rural Villages Development Program
TABLE OF C O NTE NTS
CORPORATE BACKGROUND
CORPORATE BACKGR OUND
PG.11 Rural Villages Development Program
CORP ORATE BACKGROUND
Q UEI R O Z GALVĂƒ O i n S u b - S a h a r a n Afr i ca Queiroz GalvĂŁo is a Brazilian Group focused on construction with more than 5 decades of experience. Present in Africa since 2006, it commenced its activities in Angola, within the process of National Reconstruction, having been awarded several construction projects and having reached over 5 thousand employees, of which at least 4 thousand Angolans.
Ghana
In 2010, the group started its expansion to other Sub-Saharan countries, with offices in Ghana, Gabon and Mozambique. Gabon
Angola
Mozambique
r u ral v illages D e v elopment program
PG.15 Queiroz Galvão has developed a concept for a Rural Villages Development Program which has the strategic aim of delivering the necessary infrastructure for the well-being of rural populations and the development of economic activities with the purpose of promoting:
Employment and Wealth Generation
Increase in the standards of living through new infrastructure
• Generation of new direct and indirect jobs for rural populations;
• Construction of new houses, schools, health centers, public administration facilities, among others;
• Creation of several opportunities to include smallholders into dynamic agribusiness supply-chains.
• Stable and reliable power supply;
Rural Development • Addressing the challenges of food security through the creation of a sustainable, diverse and continuous food supply to local and national markets; • Promotion of new farming technologies, with innumerous side effects such as skills development, increase in yields, among others.
• New roads and water supply infrastructure.
Rural Villages Development Program
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AIMS O F T H E R U R AL V ILLAG ES D E V ELO P MENT P R O G R AM
PG.17 The types of infrastructure facilities envisaged by the Program can be structured in four strategic axes:
SO C IAL IN F R AST R U CTU R E
• Housing; • Schools;
T R ANS P O R T IN F R AST R U CTU R E
• Access and haulage roads; • Highways; • Storage and/or product distribution centers
• Health Centers; • Public Administration facilities.
P R O D U CTION IN F R AST R U CTU R E
• Water supply systems; • Agricultural production infrastructure; • Agro-processing industrial facilities.
ENE R G Y IN F R AST R U CTU R E
• Power generation systems; • Rural Electrification.
Rural Villages Development Program
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OV E R V IE W – R U R AL V ILLAG ES D E V ELO P MENT P R O G R AM
PG.19 Construction of new and/or improvement of existing urban facilities in rural areas.
Asphalt streets and roads
Schools, Health Centers
Public Administration facilities
Rural Villages Development Program
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SO C IAL IN F R AST R U CTU R E
PG.21 Construction of access and haulage roads through which supplies, agriculture machinery and products can be swiftly and safely transported. Construction of highways to connect production areas with consumption, industrialization and/or export-processing regions.
AC C ESS R OA D S
H I G H WAYS
Rural Villages Development Program
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T R ANS P O R T IN F R AST R U CTU R E
PG.23 With the purpose of promoting sustainable agriculture practices and food security, the Program encompasses a production concept in which a family may dedicate to two production systems at the same time. • Production of food crops for local consumption through the concept of MANDALA (sustainable and organic farming).
Production areas of food crops for local consumption
• Production of cash crops that may be sold to agro processing industries.
Production areas of cash crops
Rural Villages Development Program
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P R O D U CTION IN F R AST R U CTU R E
PG.25 Mandala is a concept of organic and cooperative farming in which subsistence agriculture can coexist with production of fish, livestock, and other kinds of food products. Its main characteristics are: • The production areas are circular. • In the center of the area, there is a water tank for irrigation and fish production. • In this tank, the fish and bird manures are also used as fertilizers. • Apart from agricultural and fish production, small animals can also be raised, such as chickens and cows, among others.
Rural Villages Development Program
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T H E MAN DALA FA R MIN G SYSTEM
PG.27 • The infrastructure of the rural villages will enable small holders to produce food – through the MANDALA SYSTEM – and cash crops at the same time, with the latter as a source of income. • There are various examples of this type of coexistence in agriculture in which cash crops can be: • Annual crops – maize, soybean, rice, among others. • Permanent crops – Fruit trees, citrus, coffee, oil palm, sugar cane, etc.
Rural Villages Development Program
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P R O D U CTION IN F R AST R U CTU R E – P R O D U CTION O F FOO D AN D CAS H C R O P S
PG.29 There are various agro processing industries that are able to generate excess power through the use of biomass residues in thermal generation systems. Therefore, the Rural Villages Development Program includes as concepts: • Promotion and design of agro processing projects that enable electricity generation with the use of residual biomass. • Development of rural villages that can be self-sufficient in power generation.
B IOMASS R ESI D UES
SU GA R C ANE B AGASSE
MAI Z E ST R AW
OIL PALM R ESI D UES
Rural Villages Development Program
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ENE R GY IN F R AST R U CTU R E
PG.31
RURAL VILLAGE
PUBLIC ADMINISTRATION
CROP PRODUCTION AREAS
Rural Villages Development Program
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G E N E R A L OV E R V I E W – C O N C E P T U A L P R OJ E CT O F T H E R U R A L V I L L AG E S D E V E LO P M E N T P R O G R A M
PG.33 There are several examples of construction and management of large agricultural infrastructure schemes around the world. Here are three models that are worth looking at. Brazil – Large scale irrigation projects • General concept: Construction of large irrigation schemes with all types of infrastructure (roads, water and power supply). • Production models: Small holder properties combined with medium and large commercial farms. • Investment model: Public investment with long term financing provided mainly by Development Finance Institutions – DFIs (World Bank, etc.). • Land Ownership: Private, with the primary sale of land plots performed by government agencies. • Maintenance and management expenses: Management performed by farmers’ associations, with maintenance costs funded by charges and fees paid by the farmers.
Rural Villages Development Program
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S U C C E S S CA S E S – I M P L E M E N TAT I O N A N D M A N AG E M E N T O F L A R G E AG R I C U LT U R A L I N F R A S T R U CT U R E S C H E M E S
PG.35 Malaysia – FELDA – Federal Land Development Authority • General concept: Construction of rural villages for oil palm small holders, with all necessary types of infrastructure. • Production model: small holder agriculture (family owned) with farms that range from 4 to 5.7 hectares. • Investment model: Public investment. • Land Ownership: Collective (early years) and private. The farmer acquires land with a 12 year financing plan granted by governmental agencies, similar to real estate projects.
Rural Villages Development Program
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SU C C ESS CASES – IM P LEMENTATION AN D MANAG EMENT O F LA R G E AG R I C ULTU R AL IN F R AST R U CTU R E S C H EMES
PG.37 Tanzania – SAGCOT – Southern Agricultural Growth Corridor of Tanzania • General concept: Construction of “infrastructure backbones” – power, roads and water supply – in a region with fertile soil as a means to attract private investment to agriculture. • Production model: Small holder properties combined with medium and large commercial farms. • Investment model: Public investment with long term financing provided mainly by Development Finance Institutions – DFIs (World Bank, etc.). • Land Ownership: Public, with long term concession agreements.
Rural Villages Development Program
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SU C C ESS CASES – IM P LEMENTATION AN D MANAG EMENT O F LA R G E AG R I C ULTU R AL IN F R AST R U CTU R E S C H EMES
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PG.39
PG.41 In order to move forward with the Rural Villages Development Program, Queiroz GalvĂŁo proposes the following roadmap:
1
Id e n t i f i c at i o n o f l a rg e a r e a s w i t h h i gh a gr i c u lt u r a l p ot e n t i a l a n d t h e m o s t s u i ta b l e cr o p s
2
Id e n t i f i c at i o n o f m a i n i n fr a s t r u ct u r e c o n s t r a i n t s a n d e l a b o r at i o n o f i n fr a s t r u ct u r e pr oj e ct s
3
D e l i v e r y o f i n fr a s t r u ct u r e pr o p o s a l s to t h e G ov e r n m e n t
4
G ov e r n m e n t a ppr ova l
5
S t r u ct u r i n g o f f i n a n c i n g agr e e m e n t s
6
Ex e c u t i o n
Rural Villages Development Program
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NE X T STE P S
T H E P OTENTIAL O F AG R I C ULTU R E IN A F R I CA
PG.45
“Agriculture is the next big thing on the continent.” Obiageli Ezekwesili, vice president of the World Bank’s Africa Region.
“50% of the arable land that exists today is in Africa.” Obiageli Ezekwesili, vice president of the World Bank’s Africa Region.
“Africa can feed itself in a generation.”
Calestous Juma, Professor of the Practice of International Development at Harvard University.
Some of the data that support the belief in the Continent’s potential for agriculture are: • Vast extensions of arable land mostly unused. • Favorable climatic conditions, with good levels of rainfall and sunlight. • Considerable availability of water resources.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Much has been spoken about the potential of agriculture in Africa and such potential has been widely evidenced in the recent years.
PG.47 Africa is the continent with the largest extension of potential arable land in the world, even though it has one of the lowest rates of arable land in use.
Potential arable land by region (thousands of hectares) 1,109,851
1,028,473 777,935 479,632
Sub-Saharan Africa
South and Central America
384,220
North America
Europe
Asia and the Pacific
Source: FAO TERRASTAT DATABASE
“AFRICA HAS 29% OF THE WORLD’S TOTAL POTENTIAL ARABLE LAND”.
Potential arable land by region (as % of total) 29% Sub-Saharan Africa 27% South and Central America 13% North America 10% Europe 21% Asia and the Pacific Source: FAO TERRASTAT DATABASE
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
AVAILA B ILITY O F A R A B LE LAN D
PG.49 Potential arable land in use by region (as % of total) 39% Asia and the Pacific 12.9% Sub-Saharan Africa 11.7% South and Central America 19% North America 17.4% Europe Source: FAO TERRASTAT DATABASE
Current and estimated area of arable land in Africa by subregion (thousands of hectares) Thousands of hectares of arable land
Northem Africa Southem Africa
160.000
Western Africa Eastem Africa
120.000
80.000 Western Indian Ocean Islands
40.000
Central Africa 0 Current area of arable land (2003) Estimated potencial of equivalente rainfed arable land area Source: FAO TERRASTAT DATABASE
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
“However, ONLY 12,9% OF THE WORLD’S ARABLE LAND IN USE IS IN AFRICA”.
PG.51 Major climatic factors influencing crop water needs
In the last 3 decades of the 20th century, many countries in the world were able to revolutionize their agriculture sectors, achieving self-sufficiency and in most cases, becoming net food exporters. Strong infrastructure development and technology were fundamental to these developments, but suitability for crop production remains one of the main factors for success in agriculture. Suitability is mainly a combination of good soils and favorable climatic conditions (rainfall patterns, temperatures, humidity, sunshine) and fortunately, Africa has some of the most outstanding conditions for agriculture in the world. Let´s start analyzing rainfall patterns, as crop water need is one of the key factors for successful agriculture development.
humidity sunshine Cº
Fº temperature windspeed
evaporation
evaporation
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
FAV O R A B LE C LIMATI C C ON D ITIONS
PG.53 Water demands of selected crops (mm/growing period) 2,000 1,700
Source: Food and Agriculture Organization – FAO
600
575
550
575
650
800
pe
r Po ta Ri to ce So (pa d rg hu dy) m /M ill et So y be an Su ga rb ee Su t ga rc an e Su nfl ow er
750
Pe p
nu
t
600
Pe a
n
450
io
el on
500
M
ze ai M
n tto Co
us tr Ci
at
Ba
rl ey
/O
at
s
Ba
/W
he
na na
fa l
fa
550
On
650
600
at o
1,050 1,000
To m
1,200
Rural Villages Development Program
Crops have different water demands and the variation among their needs can vary as much as 1.000 mm per year or even more. Here are some of the water demands (mm) of important crops per growing period (mm/total growing period).
Al
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
R AIN FALL PATTE R NS IN SU B - SA H A R AN A F R I CA
PG.55 As we can see below, most Sub-Saharan African countries have good rainfall patterns, with averages ranging from a minimum of 800 mm/annum to 2.000 mm in most areas.
Av e r ag e a n n u a l pr e c i p i tat i o n
Precipitation in mm 0-200 200 - 400 400 - 600 600 - 800 800 - 1000 1000 - 1400 1400 - 2000 2000 - 3000 3000 - 4500
1000
0
Source: Food and Agriculture Organization – FAO
1000
2000 Kilometers
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
AV E R AG E ANNUAL P R E C I P ITATION IN A F R I C A
PG.57 The important issue here is that insolation, or hours of sun/day is a very important variable affecting agriculture suitability in a given region, as sun light is the source of energy for photosynthesis. Therefore, in most cases more sun light means more crop production and Africa is also a privileged Continent when it comes to insolation. Average solar radiation recorded in the period 1990-2004
Source: Centre for Energy and Processes, Ecole des Mines de Paris, 2006
90
80
-2 0
28
70
-2 0
27
60
-2 0
26
50
-2 0
25
40
-2 0
24
30
-2 0
23
20
-2 0
22
10
-2
-2
0
0 20
21
90
00 -2
0 19
80
-1 0
18
70
-1 0
17
60
-1 0
16
50
-1 0
15
40 14
0
-1
30
-1 0
13
20
-1 0
12
10
-1 0
11
00 10
0
-1
0
-1
90
0
-9
80
0
-8
70
0
-7
60
0
-6
50
0
-5
40
0
-4
30
0
-3
-2
20
0
-1
0
Yearly Mean of Irradiance in W/m2
Rural Villages Development Program
Insolation is a term used to explain the measure of solar radiation issued on a specific surface and can be given in several units, such as sun hours/day, W/m², among others.
10
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
INSOLATION
PG.59 Climate change has turned water resources management into one of the most strategic policies needed in the 21st century. In this sense, water management infrastructure becomes vital, whether it is to store water to avoid water shortages or to contain water in cases of excess raining, floods, etc. In addition to that, when it comes to agriculture, a range of issues may turn irrigation into an indispensable need if a project is to be successful. • Sometimes, very good soil is located in areas with rainfall patterns that are not satisfactory; • Irrigation, even in areas well served with good rainfall, can become an important tool for yield improvement. Fortunately, virtually all regions of Sub-Saharan Africa have plenty of rivers that, if evaluated with wisdom, can become powerful sources of water for irrigated agriculture.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
WATE R R ESOU R C ES
PG.61 Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Major river b a s i n s o f Afr i c a
River basin boundaries Altitudes 2500m 1500m 1000m 500m 200m 100m
Source: Aaron T. Wolf et al, 1999; Revenga et al; ‘Watersheds of the World’, WRI, Washington, D.C., 1998; Rekacewicz, ‘Atlas de poche’, ‘Livre de poche’, Librairie generale francaise, Paris, 1996 (revised in 2001).
0m
PG.63 In the economic history of nations, the development of the agriculture sector has left many positive dividends in terms of economic growth, generation of employment opportunities, development of new technologies, among many other positive impacts. Some of the main positive externalities of developing the agriculture sector are: • Generation of abundant employment opportunities; • Poverty reduction; • Attraction of foreign direct investment; • Growing food demand and prices (also to address food security); • Creation of sophisticated agro-industry supply chains that multiply positive impacts upstream and downstream of farms.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
W H Y TO IN V EST IN AG R I C ULTU R E
PG.65 Even when carried out with modern technology and techniques, agriculture can be considered a job-intensive economic activity, in the sense that it is able to generate many more jobs per investment than other economic sectors. In other words, AGRICULTURE DEVELOPMENT IS ONE OF THE MOST INEXPENSIVE WAYS OF CREATING LARGE AMOUNTS OF JOBS, as shown on the table below. Job creation per $ 1 million investment Industry
Direct
Indirect
Induced
Total
Oil & Gas
0,80
2,90
1,48
5,18
Financial Industry
3,22
2,34
1,67
7,23
Coal
1,90
3,00
1,96
6,86
Livestock
6,40
9,10
6,20
21,70
Crop Agriculture
9,80
6,50
6,50
22,80
Source: Heidi Garrett-Peltier and Robert Pollin, University of Massachusetts Political Economy and Research Institute
Creation of direct jobs per $ 1 million investment
9.80
6.40
3.22 1.90 0.80 Oil & Gas
Financial Industry
Coal
Livestock
Source: Heidi Garrett-Peltier and Robert Pollin, University of Massachusetts Political Economy and Research Institute
Crop Agriculture
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
EM P LOYMENT G ENE R ATION
PG.67 Agriculture and agribusiness can also play a major role in poverty reduction and alleviation. Countries that have had strong improvement and growth in their agro-based industries (such as Australia, Argentina, Brazil and South Africa) have seen a sharp increase in the GDP per capita of rural populations as well as the improvement of many other social indicators.
Evolution of the Agricultural GDP per capita (GDP per capita of rural populations) in selected countries (USD) 17,223 16,665 14,840
14,234
Brazil
10,803
Argentina Australia South Africa 5,360
3,257 847 315 1994-1996
4,659
4,838
1,147
1,575
1,689
620
763
720
3,832
1999-2001
Source: FAO Statistical Yearbook 2009
2005
2006
1,843 743 2007
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
P O V E R TY R E D U CTION
PG.69 Comparison between Australian agricultural GPD per capita (2007) and GPD per capita of selected countries in 2011 (power purchasing parity) – (USD) 14,234 11,600
11,000
4,700
Australia
Brazil
Source: FAO Statistical Yearbook and CIA
Indonesia
South Africa
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Just as a means of reference, Australia´s agricultural GDP per capita is far higher than the average GDP per capita (total GDP, including all economy sectors) in many developing nations, such as:
PG.71 According to some estimates, by 2050, the world´s population will reach 9.1 billion people, nearly 34% higher than today (Source: FAO – How to feed the world in 2050). This trend makes food and energy production some of the main challenges for the future. In order to increase food production, yield improvements in traditional large scale food producers will not be enough. That makes expansion into new or less traditional areas mandatory in order to meet future food demands and Africa can play a big role in meeting the new food requirements. As a matter of fact, global agribusiness corporations have already realized that Africa is strategic when it comes to new crop production areas with high potential. Some examples of huge investments in African assets are demonstrated on the following pages.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
ATT R ACTION O F FO R EI G N D I R E CT IN V ESTMENT
PG.73
R E C ENT IN V ESTMENTS O F T H E C OM PANY IN A F R I CA
Cote D´Ivoire Olam has recently inaugurated 2 new processing facilities in Cote D´Ivoire, one being a cashew processing plant and the other a dairy processing plant, the first of its kind in West Africa. Direct benefits • 30.000 benefited farmers; • 2.400 direct jobs generated, of which 60% are female; • Over USD 200 million in additional investments are expected for the next 3 years in the country.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Olam International is a leading global integrated supply chain manager with a portfolio of 20 agricultural products and food ingredients. Established 22 years ago, it has a direct presence in 65 countries. With stocks traded at the Singapore Stock Exchange, its revenues in 2011 reached over USD 12 billion.
PG.75 Olam has recently inaugurated a wheat processing facility in Ghana at a capital cost of USD 55 million. Other investment highlights • Over USD 450 million in investments announced for the country for the coming years; • Nearly 1.500 new direct jobs expected to be created.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Ghana
PG.77
“We are also optimistic about the longer term prospects for Africa because of its availability of land and labor as well as suitable climate. We will continue to explore opportunities to expand our hectarage there”. (Source: Wilmar Annual Report 2010)
Wilmar has made important investments in Africa in the recent years, including the acquisition of a majority interest in Benso Oil Palm Plantation – BOPP – from Unilever in Ghana.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia’s leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalization on the Singapore Exchange and reported revenues (2010) of over USD 30 billion.
PG.79 The engagement of the public sector in comprehensive investment promotion schemes for agriculture is vital in Africa. In Tanzania and Mozambique, a public-private initiative called “Agricultural Growth Corridor”, which counts on the support of several international institutions and global agribusiness players, is sponsoring a unique strategy for agricultural sector development. Its main highlights are: • Construction of infrastructure backbone axis, with reliable power and water supply and competitive transport infrastructure (roads, rail, port terminals). • Amid the radius of influence of such backbones, agroindustry clusters coupling commercial and smallholder farming schemes are to be implemented. • The underlying idea is that public investment in infrastructure in areas with huge agricultural potential will attract foreign investment in production. • Hundreds of millions of dollars are expected in investments with hundreds of thousands of hectares expected to go into production.
Rural Villages Commercial Farming Areas
Service/Haulage Roads
Service/Haulage Roads Highway
Rural Villages
Commercial Farming Areas
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
P U B LI C SE CTO R EN G A G EMENT IN AG R I C ULTU R AL IN V ESTMENT P R OMOTION IN A F R I C A
PG.81 If there is something we can consider certain about the future, it is that food demand will continue to grow and if production doesn´t grow at the same pace, food prices will also peak. There is a true consensus around this theme worldwide.
“An era of structurally high and rising food prices”. (Source: Citibank – “Global Economics View”, 21st February 2011)
“Global food demand could double by 2050, according to a new projection by David Tilman, Regent´s Professor of Ecology in the University of Minnesota’s College of Biological Sciences”. (Source: University of Minnesota)
“Food prices shall remain high for several years”. (José Graziano, Director General of the UN Food and Agriculture Organization – FAO) Nearly all projections point to the same direction, i.e., expansion of food demand worldwide.
Projected growth in the trade of wheat, coarse grains, soybeans and soybean products Milion metric tons 225 200
Soybeans and soybean products 1/
175 150 125
Wheat
Coarse grains
100 75 50 1990
1995
2000
2005
2010
1/ Soybeans and soybean meal in soybean-equivalent units. Source: USDA Agricultural Projections to 2020
2015
2020
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
G LO B AL FOO D P R I C ES AN D D EMAN D
PG.83 For many of the most traded commodities, consumption growth is forecasted to remain higher than production growth in the coming years.
Production and consumption annual growth rates of selected commodities (2010-2019) – (%) 1.8
1.7
1.8
1.4 1.1
1.2 1.0
1.1
Production Consumption
Sugar
Wheat
Source: OECD-FAO Agricultural Outlook 2010-2019
Rice
Pig Meat
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
G LO B AL FOO D P R I C ES AN D D EMAN D
PG.85
VALUE A D D ITION D O W NST R EAM O F FA R MS In addition to the benefits that agriculture alone can create (job and income generation, etc), agriculture can also be the mainstay of huge value chains with associated and downstream industries around it.
Typical value chain in agro-processing industries Associated industries before crop farming
Downstream
Fertilizers, pesticides
Upstream
Food Industry
Seeds
Crop farming
Beverage industry
Agriculture machinery
Other processing industries
In most countries where agriculture has evolved into complex and mature agro-processing value chains, research and development has contributed to the creation of real technology development clusters, with industries as diverse as metallurgy and software development backing agro-processing activities.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
C R EATION O F SO P H ISTI C ATE D A G R O - IN D UST R Y SU P P LY C H AINS T H AT MULTI P LY P OSITI V E IM PACTS U P ST R EAM AN D D OW NST R EAM O F FA R MS
PG.87
“In less than 30 years Brazil has turned itself from a food importer into one of the world’s great breadbaskets”. (Source: The Economist, August 26th 2010) Brazil was able to revolutionize its agricultural sector in a relatively short period of time and today it is one of the mainstays of food markets in the world. Committed public sector support through investment in infrastructure and research & development, coupled with intensive private investment in production and industrialization have contributed to making Brazil one of the world´s largest commodity producers and exporters. Some of the highlights of Brazil´s agricultural sector are: • Over 65 million hectares of area under cultivation with several crops. • In 2009, the GDP of Brazilian agribusiness (including agriculture, livestock, crop processing and trade) amounted to nearly USD 540 billion, or 26% of the country´s GDP. (Source: Elaborated by Queiroz Galvão based on different data from CIA, FAO and Ministry of Agriculture and Livestock of Brazil) • Second largest soybean producer in the world as of 2009 – over 60 million tons and nearly 21 million hectares (Source: FAO). • Largest sugarcane producer in the world – over 600 million tons and nearly 8 million hectares (Source: FAO). The development of Brazil agroindustry allowed for multiple multiplying effects, generating growth and improvements in several areas that surround agriculture, such as research and development, metallurgy (manufacturing of processing facilities for agroindustry sectors), manufacturing of agricultural equipment such as tractors, harvesting machines, etc.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
T H E CASE O F B R A Z IL
PG.89 • Made possible, through soil improvement and management techniques, the expansion of agriculture into the CERRADO biome (207 million hectares), which until the 1970´s was not used for agricultural purposes due to high acidity of its soils. • Embrapa has also contributed to outstanding yield improvements in several crops, including grains and oilseeds, which have increased yields in more than 147% over the last 30 years.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
Embrapa, Brazil´s state-run agriculture research and development body is among the most important of its kind in the world in terms of tropical agriculture. Along the years, it has been responsible for several improvements in the country´s agricultural sector. Some of its achievements are:
PG.91 In addition to everything that has been exposed in the previous pages, it is also worth to highlight that several industries have flourished around the agricultural sector in Brazil, ranging from seed and fertilizer production to machinery and processing plants manufacturing. Highlights • All major agricultural equipment manufacturers (tractors, harvesting machines) have manufacturing plants in Brazil.
• Brazil is among the world’s largest manufacturers of sugarcane, orange juice and oilseed processing plants.
Rural Villages Development Program
THE POT E NTI AL OF AGRICULTURE IN AFR I CA
ASSO C IATE D IN D UST R IES
QUEIROZ GALVÃO´S EXPERIENC E WITH INFRASTRUCTURE PROJECTS SELECTED PROJECTS W ITH BIG IMPACTS ON AGRIC ULTURE
PG.95 This contribution can be seen in many ways, of which some are: • More than 30 thousand kilometers of highway grid; • Several irrigation infrastructure construction projects (dams, canals); • Over 1.000 km of power transmission lines; • More than 1.570 MW of installed capacity in hydroelectric power plants. In the next pages, we present examples of construction projects carried out by Queiroz Galvão which have brought consistent contributions to the agricultural sectors of the regions where they´ve been built.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
Throughout its 58 years of existence, Queiroz Galvão has contributed to create the basis for the sustainable economic and social development of Brazil and also of the countries in which it operates.
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CANAL DO SERTÃO – BRAZIL A promise of redemption for the hinterland and rural areas of the state of Alagoas, the Canal do Sertão was designed to carry water from the São Francisco River, impounded in the Alto Sertão region, to around one million people and to irrigate more than 56 thousand hectares, crossing 250 km, to Arapiraca, in the rural area of the state. Construtora Queiroz Galvão is responsible for building 64.7 km of canal and the infrastructure for irrigating 4.820 hectares. In addition to landscaping the step-up pumping station, the project makes it possible to carry out sustainable economic activities, like fish farming, and offers new opportunities to the inhabitants of the 42 municipalities benefited.
EIXÃO DAS ÁGUAS – BRAZIL A fundamental part of the program for transposing the river basins of Ceará State, the Eixão das Águas will cross 256 km to take water from the Castanhão dam to about three million people in Fortaleza, in the nearby industrial areas and in the port of Pecém. The project guarantees water supplies for 30 years, as well as making it feasible to install a hydro agricultural complex of 60,800 hectares. To take the construction work further along the 66.3 km of Section 3, Queiroz Galvão faced the challenge of opening up a nine kilometer canal forming a canyon along the Félix hill range, which at its peak concentrated 350 items of heavy equipment and two thousand collaborators.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
IN F R AST R U CTU R E FO R I R R I GATION S C H EMES
PG.99 The main objective of The Valle de Quíbor Agricultural Project, located in the state of Lara, Venezuela, is to provide infrastructure for the transfer and storage of water from the Yacambu River to the Valle de Quíbor, where the average rainfall is 5 times lower. Queiroz Galvão fully supports the project. Some of the project´s main targets are: • Provide an increase of at least 5% of national agricultural production; • Generation of direct employment opportunities for 32.000 people, in addition to several indirect jobs to be generated throughout the entire supply chain; • Consolidation of irrigation infrastructure and implementation of modern irrigation techniques to cover an area of 26.120 hectares; • Construction of Rural Villages including the supply of new houses for rural families; • Transfer of Brazilian agricultural technology to Venezuela through EMBRAPA. In November 2011, the first harvest of Manzano tomatoes in Monitored Crop Units – a technology transfer initiative related to the project – was carried out and presented outstanding results. While the average Manzano tomato yield in the region is 60 tons/hectare/year, the yield obtained in the Monitored Crop Unit was 240 tons/hectare/year.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
VALLE D E Q U Í B O R A G R I C ULTU R AL P R OJ E CT – V ENE Z UELA
PG.101 Comparison of Manzano tomato yields (tons/hectare/year) – Average yield in Valle de Quíbor vs Improved Yield at Monitored Crop Unit 240
60
Avarage Manzano Tomato Yield
Source: Queiroz Galvão
Yield obtained in the Monitored Crop Unit
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
VALLE D E Q U Í B O R A G R I C ULTU R AL P R OJ E CT – V ENE Z UELA
PG.103 It is almost impossible to tell the story of Brazilian roads as from the second half of the 20th century without mentioning the participation of Queiroz Galvão. Responsible for building more than 30 thousand kilometers of highway grid, it has participated in projects fundamental for integrating regions, like the Fernão Dias, Belém-Brasília, Transamazon, Rio-Santos and Cuiabá-Porto Velho highways. It is also responsible for recent works for expanding and improving the BR-101 highway, and indispensable for supporting the development of cities and states, like the Red Line arterial road, in Rio de Janeiro, and the Mario Covas Ring Road, in São Paulo.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
H I G H WAYS
PG.105 Queiroz Galvão led the consortium responsible for improvements of 44 km of the BR-101 in Pernambuco State, including duplication of lanes, restoration of the paving of the old highway, the installation of four viaducts, three overpasses and three bridges. The work considerably improved the traffic conditions in the state and provided support for investments in the Suape port Industrial Complex.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
B R -101 NO R T H EAST
PG.107 The Mario Covas Ring Road is an expressway accessed exclusively at the intersections of four other large highways and without commerce or residences alongside it. One of its main purposes is to serve as the main transportation link between several agricultural and industrial production regions and the Port of Santos, the busiest in Brazil. Queiroz Galvão led the consortium responsible for the southern stretch of the works, with urban, rural and marine characteristics and the highest technical and environmental safety standards. Its 61.6 km length, with 22 km of branches, loops and banks, house, have 134 special structures.
Rural Villages Development Program
QUEIROZ GALVÃO ´S EXP ERIENCE
MA R IO C OVAS MET R O P OLITAN R IN G R OA D , IN S ÃO PAULO
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