The Context

Brazil is a major agricultural and industrial power, and the strongest economy in Latin America and the Caribbean. It is a leading producer of coffee, sugarcane, soybean, beef and poultry. 

Brazil has made significant progress in reducing poverty from 64 per cent in 1990 to 28 per cent in 2021. Despite this, Brazil remains a country of great contrasts. Inequality is highest in rural areas, especially in the semi-arid northeast. 

Despite only representing 6.8 per cent of Brazil’s GDP, agriculture is important for income, employment and foreign exchange. Small-scale agriculture accounts for 77 per cent of agricultural production and employs three quarters of the farm labour force. 

However, most of the dynamism in the agriculture sector is created by corporate agriculture and driven by export commodities. Family farming is still characterized by low economic dynamism and a high incidence of poverty. 

Brazil faces frequent and intense droughts and heatwaves caused by climate change. This affects food security, soil and food quality, and could increase diseases, such as dengue, zika and malaria. 

The Strategy

IFAD investments focus on rural development in the northeast semi-arid region with the aim of increasing family farmers’ production and income. Activities target the most marginalized groups – such as indigenous and afro-descendant communities, women and youth – and include: 

• organic and agro-ecological production methods; 

• access to markets; 

• strengthening farmers’ organizations; 

• water collection and conservation technologies; 

• participatory planning methodologies; and 

• policy dialogue with national counterparts.