Bric Region Agriculture sector booming

The Agriculture sector in Brazil, Russia, India and China are currently enjoying a rapid period of expansion with the overall growth rate across the Bric countries expected to be 28% over the next ten years. With Agriculture markets such as Western Europe expecting to be flat in the near future then it’s the developing world with its rising populations and growing incomes that provides the opportunities for agribusiness to trade. In a recent joint report by the United Nations and Organisation for Economic Co-operation and Development (OECD) it concluded that the Agriculture sector in the Bric Partner countries of Brazil, Russia, India and China will develop three times faster than in the major developed countries.

Way back at the first Bric Summit in 2009 in Yekaterinburg Russia food security was considered a leading topic for discussion at this ground breaking event. The Bric Partner countries agreed that this was an issue and an area of concern were corporation between them would benefit each other and the World.  The recent and future growth of the Agriculture Industry in the Bric countries are partly as a direct result of agreements of cooperation put in place after the 2009 Russian Bric Summit.

With household incomes rising and a growing middle class in the Bric nations their populations are moving away from the staple foods traditional in their country to a diet more closely associated with the developed countries such as higher protein consumption through an increase of eating Meats and Dairy products. Overall consumption of Meat and Dairy products is expected to increase by over 32% by 2023 across the Bric countries with China and India becoming amongst the world leaders in milk production. China and India are currently two and three in terms of Wheat producer’s, with Russia the 5th largest producer and the World’s 3rd largest exporter with the potential to past the US within the next 20 years. Russia’s neighbours Ukraine and Kazakhstan are also increasing wheat production therefore adding weight to this areas potential to be the world’s Bread basket. (See Bric agriculture world production and export positions)

Brazil has the fastest growing agriculture sector out of the 4 key Bric Partners with expected growth to be beyond 40% over the next 7 years to 2020. Brazil leads the world as a producer of Coffee, Beef, Chicken, Orange juice, Sugar and Soya bean.  Another factor which is greatly increasing growth in Agriculture in Brazil is Bio-Fuels such as Bio-Ethanol and Bio-Diesel with Brazil very much as a world leader in this sector it’s expected to almost double its production by 2022 helping part supply the US fuels needs. Brazil is very dependent on imports of Potash to make fertiliser to boast production as the soil in Brazil are mostly derived from ancient geological formation which therefore lack nutrients such as nitrogen, potassium and phosphorus. It’s expected that the agriculture sector in Brazil will increase the Brazilian economy by over 3% for 2013

In China and India Agriculture growth will be 26% and 21% respectively over the next 7 years up to 2020 with Russia’s agriculture sector growing by over 25% for the same period.  To improve agricultural productivity the Bric countries are heavily investing  in plant research and encouraging entrepreneurial initiatives to boast there smaller and medium Agricultural business to modernise helping them become more efficient and productive. The governments of Brazil, Russia, India and China are investing in research, financial backing to farmers, education of farmers and improving rural infrastructure such as transport links to boast agriculture productivity.

The agricultural sector for all of the Bric’s nations is import for exports as well as feeding over 3 Billion people it’s clear that this industry is key to their future development of all the Bric partners. Bric countries are also investing in other countries and in particular in Africa which has 60% of the world’s arable land  so it makes sense to take their experience and knowledge to help shape Africa’s agriculture future.

The Bric region offers excellent Opportunities for all levels of Agribusiness to support agricultural production systems in Brazil, Russia, India and China. Whether you’re a supplier of technology for crop production, farm machinery, Livestock production systems, Research, agricultural supplies, agrichemicals, seed supply, contract farming, Environmental technology, measuring instrumental and control, Energy, Storage and management then there will be demand for growth in the Bric region.