Elizabeth M'M'Q' Farina

1

Brazilian pork and beef agribusiness systems
Market Opportunities for Developing
Countries IAMA Forum , June, 2004

• Elizabeth M.M.Q. Farina
• University of São Paulo
• FEA Department of Economics and Business
• PENSA Food and Agribusiness Program

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Market Opportunities for Developing Countries

• Poverty Alleviation
• Wealth creation

3
Food and Agribusiness Paradigm Transformation

• Commodity System
• General Standards based on few attributes
• Low cost observation attributes
• Scale Cost advantages
• Value Addition processing

• Differentiation System
• Proliferation of standards based on very a large
  number of attributes
• High cost observation attributes
• Scope Cost advantages
• Value addition in natura products

4
Brazil's Example beef exports industrialized
and in natura
in export value
Beef Exports and Imports
in quantum
Source ABIEC
5
Questions

• How can developing countries take advantage of
  opportunities opened by the new paradigm?
• How to reach small and medium businesses ?
• How to reach the poor?
• What are the costs of new standards compliance?
• What are the benefits?
• Which are the main challenges?

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Developing Countries

• Main common feature of DC disparities
• Income
• Education
• Capabilities
• Opportunities
• Development
• transformation of minds, condition of life and
  institutions (formal and informal rules that
  constrain and guide citizens actions)
• Transformation of the vicious circle of exclusion
  into the virtuous circle of development

7
An Intelectual Barrier to be Overcome
Tom Reardon