Brazil Agriculture: Regional Agricultural Investment Opportunities in Brazil

Interview with José Roberto Bortolozzo, Founder of Central Agrícola Nova Era (CANEL)

Can you talk a little bit about Piauí?

Piauí has a natural vocation for agricultural production, reforestation, and grain culture and we’re privileged in terms of logistic: we are very near to the second consumer centre of the country. We can serve up to 40 million inhabitants.

Everyone is looking at Piauí as a favourable option; it’s near the harbour which is currently in reconstruction. This harbour will be of a major importance for the progress of the Piauí state.

Big companies are coming to Piauí. How are you able to compete with these companies?

The ideal thing is not to compete but to make partnerships with those coming companies.

Regarding the agriculture sector in Piauí, it seems that everything has been already done. Which are the opportunities left for investors from Europe and other parts from the world?

We are working in the eucalyptus reforestation. We need to have a big industry in Piauí in the cellulose and paper pulp to “manufacture” this forest.

In Piauí there is still a lot of space to be profited from. We are just profiting from 12% of our agricultural capability which is relatively very low.

One of the major opportunities is to have companies to transform our raw materials. We are also looking at the animal protein market since we don’t have it here and the products have to travel the whole country to arrive here into the Northeast part of Brazil.

Which are your future perspectives for your particular sector?

The perspectives for agriculture sector in Piauí are very good. The agriculture business for soya and corn is going to grow in the new future. The world stock is diminishing and the worlds’ consumption – on the other hand – is being increased. This trend is actually very good for Piauí; the United States can’t expand their agricultural soils. Also, the only Brazilian state with available lands is Piauí with 5 million ha.

If the foreign producers came here, could they potentially bring the local agriculture producers out of business?

No. We are here since 1988 and we were the pioneers in the soya production in Piauí. Since then, agriculture is professionalizing and developing at such a rate that only the best producers are able to maintain their business here.

We studied several locations like Bahia, Rio Grande do Sul, Mato Grosso, and others before we settled here in Piauí. In Mato Grosso, for example, the costs of fertilizers are too high. Even in logistic terms Piauí has much more advantages. Piauí has 4,4 million hectares of good soil ready to be used.

CANEL trades soya, corn, cotton, eucalyptus, and limestone mining and all of them are profitable.

We always talk about the good things in/about Piauí. What about the challenges Piauí has yet to face in the agriculture sector?

We use cutting edge technology; the materials are adapted. The major problem in Piauí is the transport system and the whole infrastructure: roads and possibly railways and harbour. When the harbour is built and ready and if there are good roads and railways, Piauí will probably be the best place in the world for agricultural production.

Which are your medium term projects in terms of agricultural development in Piauí?

I think we have to profit from the moment and grow in all segments.

There is a U.S. group from Tennessee that has established in Urussuí ten years ago and they came to CANEL to meet us and see how we were doing things. There are already 3 U.S. companies in the Serrado. I know it’s difficult for foreigners to invest in the country, but those who made it are very happy and satisfied with the results.

Is CANEL going to invest its own money or are you looking for investors and partnerships?

Every year we have been going to the U.S. to see what methods and technologies are working over there so that we can copy them over here in Piauí.

CANEL already has a couple of U.S. partners in terms of technology: they came into our lands and experimented with new methods, new processes, new technology.

Is the entire agricultural production consumed locally or are you also exporting?

A part of the production stays at BUNGE, one of our partners, and they export it.

Piauí is not known outside Brazil. What has to be done for it to be more known?

About 5 years ago Piauí began to worry about its external/international image outside of Brazil. All that is shown is Mato Grosso and Goiás – but this is actually slowly changing.

The National Media is now speaking a lot more about Piauí. Piauí has today a good quality of life, which is better than in the São Paulo’s interior, for example. I’m from São Paulo and I’m not going to return back because – even in terms of the agriculture – you have the space you need for your growth here in Piauí only.