COOPERPOMARIS/SC

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Partners Activities

Cooperative of Fruit of the

Northern Plateau of Santa

Catarina -

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Partner Activities

Department of Rural

Socioeconomic Studies of Parana - DESER/PR

Identify and discuss problems and potential

references, by carrying out a participatory analysis of diversification and income, in order to qualify for the action of the inclusion of new crops, alternatives to tobacco, along with tobacco growers in southern Brazil.

State Foundation for Agricultural Research - FEPAGRO/RS

To validate, develop and provide technologies for farmers and fisher folk in the Valley of Rio Pardo, North Coast, Campos de Cima da Serra and Viamão and the surrounding area of the Rio Grande do Sul.

Agronomic Institute of Paraná - IAPAR/PR

Diversification of production systems based on

tobacco growing in south-central Paraná: Networks of family farms and agroecological production of oilseeds for biodiesel and co-products.

Federal University of Santa Catarina – UFSC

Monitoring and dissemination of agro meteorological data in support of fruit growing on the plateau north of Santa Catarina as an alternative to growing tobacco.

Federal University of Technology of Parana – UTFPR

Identifies through research the main systems of rural production that occurs in tobacco cultivation areas in southern Brazil that has had some productive

reconversion projects funded by the National Program of Diversification of areas of Tobacco Cultivation MDA/SAF/DATER.

University of Santa Cruz do Sul – UNISC

Building networks for membership in the agro industry of the Valley of Rio Pardo: The agrocon network Asflor is implementing a process of technical assistance and rural extension, with the capacity of the producers involved in agro industries covering the municipalities of the Valley of Rio Pardo to qualify for the production and management system, benefitting the Agricultural families in the region.

Federal University of Rio Grande do Sul – UFRGS

Propose an alternative to the culture of tobacco in the region of the Valley of Rio Pardo, particularly the municipalities of Santa Cruz do Sul and Vale do Sul in the state of Rio Grande do Sul. Their aim is to support the agricultural sector in production, characterization, conservation and use of plants for pharmaceutical interests, also aimed at the demand of well

established industrial services, that are lacking in

supplies.

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Partner Activities

State University of the Central West – UNICENTRO/PR

Developing University extension activities that may assist and promote the diversification of key properties of the Agricultural Family in tobacco cultivation in the municipalities of the region of Irati/PR.

Brazilian Agriculture Research Enterprise (Embrapa) on Temperate Climate

Technically and economically feasible development alternatives to tobacco growing in the Agricultural Family properties, based on agro ecological principles for them in Rio Grande do Sul.

Source: adapted from MDA 2010.

The research developed by Embrapa on Temperate Climate deserves to be highlighted, since it works on training farmers for food processing with installation, training and monitoring of demonstration units of manioc, castor bean, parsley, watermelon, fig, citrus and pasteurized milk. Seven municipalities are covered by the project: Amaral Ferrador, Canguçu, Capão do Leão, Morro Redondo, Pelotas, São Lourenço do Sul and Turuçu, all of them in the state of Rio Grande do Sul. Some local partnerships were celebrated with the United Association Communities of Canguçu Interior (UNAIC) and the Cooperative of Small Farmers of the South Inc. (COOP). The following table presents partial results of the project, in different production systems.

Table 5: Embrapa on Temperate Climate Research on different production systems -

Products and Specific goals and partial results.

Products Specific goals and partial results

Citrus

Despite market fluctuations, especially in supply chains of the manufacturing industry, the fruit production has provided interesting economic indicators, especially for those who seek specialized producers constantly updating with market trends. In the case of citrus, special conditions of insolation and

temperature allow for the production of fruit with a greater flavor and appearance, which highlights the vocation of the southern region of Brazil for the production of table fruits.

Manioc

It is among of the most important and consumed crops in Brazil.

In several regions it is largely responsible for income, primarily

in the production of flour and starch. With great culinary value,

manioc keeps the production system greatly simplified, which

contributed to its expansion. Currently the root figures in

programs of biofuel for their potential of carbohydrates. The

project aims to demonstrate the possibility of an increase of

income with the manioc cultivation, due its genetic hardiness

and high standard.

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Products Specific goals and partial results

Sweet Potato

Sweet potato has a feature that gives relative advantages over other cultures. It can be used for human consumption, including flour, or used as a component in animal feed as raw material, for the manufacture of alcohol and the branches used as animal fodder. Its great power of land cover is also noted, which is an excellent soil protection against the weather. A FAO study (2000) puts this vegetable as the sixth most produced in Brazil.

The project works to offer high quality plant seedlings. The material is multiplied in vitro under laboratory conditions in order to eliminate the major diseases that affect production, enabling real productivity gains in the order of 120%.

Figs

It is a cultivation well adapted to the climate of southern Brazil.

Mainly, the fruits are used in agro-processing, although they can be marketed fresh. It is a strategic culture to supplement

income. The proposed project is to demonstrate the

technologies available for the cultivation of organic figs and empower farmers in the establishment and management of orchards of fruit species.

Mini watermelon

The market for mini vegetables has grown significantly in recent years in Brazil. The project tests mini watermelon as another option for the diversification of the production system.

Depending on the market differential, good occupation of the area and the simplicity of the production system, the mini watermelon proved to be a viable alternative for diversification in the areas of tobacco production.

Milk

The installation of demonstration units of milk and grass features is one of the most productive. Milk is a traditional and very large line of production of family agriculture. The activity of milk production on small properties has outstanding

characteristics, as a continuous generation of income throughout the year, and accounting for other seasonal or

permanent activities. The project confirms that family agriculture is primarily responsible for milk production in the southern districts. The demonstration units of milk and grass follow a modern dynamic transfer and appropriation of technology, because in addition to introducing new technologies into pasteurization, we conducted a monitoring of key indicators to improve the system over a particular period for systematic changes: milk quality, management of rearing and good habits in the act of milking.

Honey

Honey emerges as an important alternative to growing tobacco,

with great potential for income generation on the small farm. In

2007 Brazil produced about 35 tons of honey, the Rio Grande

do Sul state being the highest producer, with 7,365 tons or

21.2% of domestic production, according to IBGE data.

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Products Specific goals and partial results

Artisanal processing of food from animal and vegetable origin

The inclusion of family agriculture in the consumer market for food is recognized as a challenge. New perspectives are beginning to emerge. Artisanal processing food may receive the same value for its production as industrialized food, considering the offers of products with no chemical additives.

The proposed projects aimed to reduce farmers' dependence on tobacco production, training them in the artisanal processing of food, whether of animal or vegetable origin, and thus increasing their income.

Source: adapted from MDA 2010.

Another experience that deserves to be highlighted is the pilot project for reference generation on diversification production and income on the tobacco cultivated in the Municipality of Dom Feliciano/RS, where there are 2,500 properties with less than 50 hectares and 87% of farms are classified as family agriculture farms. The production harvest of the municipality in 2008/2009 mainly included tobacco production (86.3%), and other cultivations, such as wood (9.45%), cattle (2.27%), milk (0.27%), and corn (0.19%).

In 2010, 2434 families were producing tobacco on 5721 hectares and generating a total income estimated at US$ 36.5 million. The challenges are economic and social. Despite the contribution of tobacco growing to the local Gross Domestic Product (GDP) of around R$ 130 million, other variables related to health, education, environment, present levels of concern, reflecting the low HDI, which was 0.73, and the poverty rate around 16.8% in 2009. The debate involves policy development, where economic activities in the city can contribute effectively to achieving improvement in life quality of urban and rural families.

This pilot project aims to integrate policies and programs with federal, territorial and local actions to enhance opportunities for development, with references to the Diversification Program. The specific goals for the project include the implementation of demonstration units of free-range, organic chicken, fish breeding, and milk; and, the cultivation of grapes for the production of grape juice and wine. It is also aimed to coordinate ATER actions for the diversification of production and income, healthcare in tobacco production, and communication and information delivery for farmers.

The projects funded through the Program do not include goods, crops or food purchase. As shown above they are on technical assistance, rural extension, training and research. Through these activities the Program may achieve some specific objectives, such as offering funds for technical assistance; and, in certain way, enhancing local production with new approaches, standards and techniques for processing goods, that opens fair markets to farmers. But the goal of market guarantee could not be achieved through the Diversification Program by itself.

To achieve the market guarantee for family agriculture products, the MDA and

the Social Development Ministry offer other structural programs for sustainable rural

development, which create an “institutional market” to stimulate food production. The

National Secretariat for Food and Nutritional Safety, linked to the Social Development

Ministry, has the objective of formulating and implementing a National Food and Nutritional

Safety Policy. This policy aims to promote and coordinate Federal Programs in this area,

developing structural and emergency actions on hunger alleviation, through programs and

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projects on food production and distribution, support and incentives to family agriculture, regional development, food and nutritional education, among others.

This Secretariat is responsible for the coordination of the Program for Food Acquisition (PAA). The Program is run by both Ministries, of Agrarian Development and Social Development, in partnership with state and local governments, civil society, organizations of family agriculture and social assistance network entities. The Program aims to ensure access to food in quantity and regularity to populations vulnerable to food insecurity and nutrition, promoting social inclusion through the strengthening of family agriculture. It also contributes to the formation of strategic stocks and allows small farmers to store their products to be sold at fair prices.

The PAA is considered one of the main strategic actions of the Fome Zero Program (Zero Hunger), operated in accordance with the National Policy for Family Agriculture – Pronaf. In summary, during crop production the Government guarantees the acquisition of family agriculture products at prices compatible with the regional market expectation for harvest time. After harvest the farmer chooses whether to sell his production to CONAB (National Supply Company), if the market prices are below those fixed in the contract, or directly to the market, if the prices are up. The PAA is organized in a way that allows for advance purchase of family agriculture food, without licitation, within the limit of R$ 3,500.00 per family/per year (MDS/PAA, 2008). The following table helps to better understand the PAA and its different modes of operation.

Table 6: Food Acquisition Program (modes of operation) Modality Objectives and

Functioning

Resource

source Coordination Way of Access

Direct Purchase

Hubs of purchase. In cases of low market prices or in order to meet

demands from populations vulnerable to

food and nutrition insecurity. It fulfills an important role in price

regulation.

MDS and MDA CONAB Individual

Stock formation

Instruments to support commercialization. It

allows financial resources and the entity

may purchase family agriculture products. The

organization may also form stock for later commercialization in better market conditions.

MDS and MDA CONAB Cooperative and Association

Purchase with Simultaneous

donation

Purchase of food produced by family agriculture and donation

to organizations that belong to the socio- assistance network.

MDS CONAB, states and municipalities

Individual, Cooperative and

Association

31 Modality Objectives and

Functioning

Resource

source Coordination Way of Access

Incentive to milk production and

consumption

To allow for milk consumption for families that are in a condition of

food and nutritional insecurity and to

stimulate family agriculture.

MDS

States from the northeast and

Minas Gerais

Individual, Cooperative and

Association

Food purchase for school

Allows for the purchase of food produced by family agriculture for

school food.

MEC- PNAE FNDE, states and municipalities

Family agriculture organizations

Source: adapted from Simoni (2009).

⁵¹

Innovations on the public policy scenario such as the PAA refresh the productive dynamics for small farmers. Once guaranteed purchase, guaranteed profit, local and regional market circuits become valued and stronger. There are still some issues to be addressed in the PAA, especially those related to the execution of the Program, challenges linked to transportation, access, and even strengthening of the commitment of local organizations and local governments.

It is important to note that policies aimed at family agriculture are not well solved and tensions related to them begin at the federal government level. The lack of interaction between ministries and even departments of a same ministry, as was verified during the interviews, indicates the complexity of the issue and related actions on territorial development linked to family agriculture. A manager from MDA reports that divergences start at the definition of concepts, such as sustainability of production. The meaning of a sustainable production varies from one ministry to another depending on political interests, especially when related to access to credit. Internal political disputes turn off the limits of competencies and create confusion and overlapping tasks.

The National School Feeding Program (PNAE) is another program that is addressed toward stimulating food production in family agriculture. It determines that at least 30% of the funds transferred by the National Education Fund (FNDE) for school meals should be utilized to purchase products from family agriculture and rural entrepreneurs or from their organizations, giving priority to agrarian reform settlements, indigenous and traditional communities.

The acquisition of food is provided, whenever possible, in the same county as the schools. When supplies cannot be obtained locally, schools can complement the demand among farmers from the same region, rural areas, state and country, in that order of priority. It is a policy that guarantees a market for fresh and processed foods produced by small farmers.

Diversification on small farms requires a continuous and qualified process of work for discussion, planning and access to public policies of structural character, which includes credit, technical assistance, training, logistics and facilities for marketing products, with the strengthening of rural organizations and cross-sector government involvement.

States in partnership with local civil society institutions must develop strategies guided by

51 Simoni, Jane S. A multidimensionalidade da valorização de produtos locais: implicações para políticas públicas, mercado, território e sustentabilidade na Amazônia. Tese de doutorado. 391f. Desenvolvimento Sustentável. Universidade de Brasília. 2009.

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the partnership, participation and principles related to the quality of life for families and the sustainability of production systems.

In some tobacco producing areas, this policy is not being put into practice because there is not enough variety and quantity of products from family agriculture to even reach the stated 30%. This situation is clearly verified in tobacco growing regions, as the key stakeholders interviewed have mentioned. Tobacco monoculture limits the

“institutional market” created by the Federal Government to inject resources in local and regional markets. Another factor that challenges family agriculture producers in tobacco growing areas and their access to national public funds such as the one from the National Educational Fund is local and national sanitary rules that up until April of 2011 did not allow family agriculture food products to be transported between municipalities within the same region.

Another policy with great importance to strengthen family agriculture is the National Program in Support of Family Agriculture (Pronaf). It finances individual or collective projects that may improve income for small farmers or family agriculture, as it is commonly known. The program offers the lowest interest rates out of all credit systems in the country for rural financing and insolvency. This loan program was created in 1995 and it is a mechanism to stimulate production and infrastructure improvement in rural areas in order to create adequate conditions for the processes of development and quality of life.

⁵²

In the Harvest Plan for 2010-2011, R$16 billion was allocated to support family agriculture. It is a credit program that benefits more than 2 million families and it is a viable instrument of agricultural and non-agricultural usage in the field. Several other instruments are associated to PRONAF, such as Family Agriculture Insurance (SEAF), the Price Guarantee Program for Family Agriculture Products (PGPAF) and Insurance for producers that live in the semi-arid regions of Brazil (Harvest Guarantee Program). The sustainable PRONAF was created in 2008 with the purpose of using rural credit to support sustainable principles within the productive system and quality of life.

⁵³

Even though it is a national program, in the first years, most of Pronaf resources were employed in the South of Brazil due to a number of reasons: small farmers were more inserted into markets and dependent on the acquisition of agricultural inputs to guarantee production; there was a greater structure of education and functioning by official technical assistance and by the labor union movement; there was more pressure from the labor union movement on the government and banks; the existence of a bank network better spread throughout the region; the existence of public technical assistance in most of the municipalities (Emater and Epagri); the emergent credit cooperatives; the National Treasury (source of financial resources) guaranteed greater facility to operate loans; and, the fact that Tobacco Industries guarantee the loans, making it easy for credit operations.

⁵⁴

According to Marcos Vargas, up until 2001, 40% of the Pronaf budget was destined to small tobacco growers. During the 90ʼs one single cigarette manufacturer received US$ 900 million in Brazilian subsidies.

⁵⁵

After a period of increase on the number of contracts and transaction values, a period of stagnation began on the harvest of 1999/00. If the applied values were deflated it is possible to conclude that there was a reduction. This happened for two reasons: difficulties within the program to reach other

52 Idem.

53 Brazil. Actions of the Ministry of Agrarian Development for the diversification of production and income in areas of tobacco cultivation in Brazil. Brasília, Ministry of Agrarian Development, 2010.

54 Nunes, Sidemar P. O crédito rural do Pronaf e os recentes instrumentos de política agrícola para a agricultura familiar. Boletim Eletrônico, Conjuntura Agrícola, n.157, fev.2007. Curitiba: DESER, 2007.

55 Nunes, Juliana C. Plantação de tabaco desmata 200 mil hectares por ano no mundo. Brasília, Agência Brasil, 18/06/2004. http://www.brasiloeste.com.br/noticia/1025/