Oklahoma Agricultural Leadership Program
Class XII Scribe Notes
Brazil International Experience
February 4-16, 2006
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Oklahoma Agricultural Leadership Program
Brazil International Experience
Scribe Notes
February 4-16, 2006
Saturday, February 4
Scribes: Brett Porter and Brian Wiles
FMD Discussion – Dr. Leslie Cole
Dr. Leslie Cole from the Oklahoma Department of Agriculture, Food and Forestry met us at the OKC airport and spoke briefly to the class about Foot & Mouth disease in Brazil. She mentioned there are 7 different types and over 60 sub-types of this disease and it represents one of the most infectious diseases on the planet. While Brazil is affected, some contamination could be crossing the border from either Paraguay or Uruguay.
FMD poses its biggest threat to US livestock through further cross-border contamination. While the organisms can be killed with either high or low PH, it can survive in products such as meat, sausage or cheese. Class members were advised to avoid bringing back such products, as well as items made with animal skins. Tanned leather was described not to be a threat.
The last case in the US was in 1929 and the last case in North America was in Canada and Mexico in 1953. The most recent outbreak in Great Britain cost an estimated 6 billion Pounds Sterling.
Dr. Cole described a scenario of a US outbreak. It is estimated that US exports would immediately decline 20% and cost the US over 6.6 billion dollars. It would primarily affect beef, dairy and pork production but other areas would also be affected. Sheep and goats can have the virus yet not show any outward signs of symptoms. Pigs can shed huge amounts of the virus. When cattle are affected, decreased production and ultimately death will occur. However, non-traditional livestock such as deer, antelope, llama and even hedgehogs still pose a transmission risk.
The class was advised to always practice good bio-security such as disinfecting footwear, making sure all clothing is either discarded or laundered and using boot covers while visiting farms and ranches in the risky areas.
Sunday, February 5
Scribe: Brian Wiles
Oliver Flake – Importance of Brazilian Agriculture
With Michael Sheeann
Mr. Flake is employed by the USDA with the Foreign Ag Service. Their goal is to promote and expand US agricultural opportunities throughout the world and eliminate world hunger. Oliver described the country of Brazil as a vibrant and successful agricultural nation with a tremendous amount of further potential. Brazil’s area is roughly the same size as the US. Agriculture in Brazil makes up 13% of the gross domestic product and comprises 42% of all exports. They currently rank # 1 in the world in orange juice, sugar and coffee production. In tobacco, they are the #1
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producer as well as the #1 exporter. Out of the total land allocated in Brazil to agriculture, 83% is currently used as pasture. They are major players in cotton and beef exports. Ethanol production went from 10 million tons to 16 million tons. In Brazil, 52% of all new cars are “flex fuel” vehicles. That is, vehicles that can run on either gas or ethanol.
The main problems present in Brazil today stem from uncertain currency and exchange rates (weak dollar) and lack of infrastructure. The Brazilian Real has strengthened against the dollar recently. There is very little rail system investment from the government in the country and a huge lack of ports and waterway infrastructure. Most roads in Brazil are either overused and in poor condition or non-existent. It was mentioned that some large producers are not waiting for the government to assist them in shipping routes and are instead building rails and roads themselves. While some farmers are favored in Brazil with low interest rate loans, most are not able to secure inexpensive financing. Interest rates from Brazilian banks are astronomical compared to US interest rates. There is also some concern over squatters and the free land movement (MST).
Mr. Flake described the Brazilian government as willing to take a stand, but having little ability or desire to enforce laws. The judicial system was not spoken of in a positive light and land ownership rights were noted as somewhat arbitrary.
A brief follow up presentation was presented by Jose Luis Campos. Mr. Campos studied agronomy in Brazil and has a very large ranch in the area. A powerpoint presentation was shown which focused on additional information regarding Brazilian agriculture.
Monday, February 6
Scribes: Jake Nelson and Steven Clay
AGCO
We departed our hotel in Porto Alegre en route to Canoas city for a tour of the AGCO tractor manufacturing facility. Most of us (American Okies) pronounce AGCO like it is spelled (ág-kōh), but our tour guide (Geraldine) had a habit of pronouncing it differently (ágee-kōh), thus producing some of our chuckles. Canoas city has a heavy industrial presence and much of its labor force commutes from Porto Alegre by train.
Upon our arrival at AGCO, a table of pastries and snacks greeted us along with our hosts Mr. Gregory Riordan, Ms. Thais Carsten da Rosa, and Mr. Naiger. Mr. Riordan began the program with a video presentation (in English) summarizing AGCO’s general operations. AGCO is headquartered in Atlanta, Georgia, USA. Gross sales for AGCO-Canoas are approximately $4.5 million annually. In Brazil, the Canoas facility is the largest for AGCO, and 60% of its production is exported. This contributes to AGCO’s large export capabilities, as evidenced by their product distribution having destinations in 52 countries, which includes the United States. The number one importer of AGCO tractors is Argentina. AGCO manufactures 25% of the world’s tractors under numerous brands including Massey Ferguson, which is the top selling tractor in Brazil. Brazilian production of Massey Ferguson tractors in 2003 reached 500,000. The Massey Ferguson 275 is the highest selling model in Brazil. A second AGCO facility in Santa Rosa manufactures Massey Ferguson combines at the rate of 250 per month.
AGCO asserts they possess and distribute indispensable technology for today’s farmers. This is accomplished in part by the many brands and subsidiaries within the AGCO name. These include Fieldstar, Soilteq, and Auto-Guide. Fieldstar is a GPS-based guidance system, which has components that are physically transferable between various equipment (e.g. - tractor to the combine). This reduces the farmer’s hardware and component purchases.
Mr. Naiger and Mr. Riordan guided us through the entire production process. Specialized equipment for hardening steel and making precise and accurate measurements was common. The AGCO-Canoas labor force is trained, skilled, and possesses a starting monthly wage of R$1,500/month. The work culture in the facility is evidently more relaxed and “worker-friendly” than most U.S. factories. We observed numerous ping-pong tables located throughout the floor, often adjacent to where much of the work was performed. This allowed recreational time during breaks throughout the day. Conversely, many workers were found to be contently napping during their break. This observation was not too strange, but seeing them nap directly in their work area (e.g. – on the seat of a tractor in the final assembly area) was a bit different. The final portion of the facility tour was at the wastewater treatment area, where the effluent from the restrooms and production processes is collected, treated, and used to maintain a small jungle of reeds and trees near the facility. While we did not actually see any monkeys, Curtis Liles was certain that some resided in the trees.
After the tour the bus drove us a few blocks to a yellow, tin-roofed building surrounded by palm trees, and were served a lunch sponsored by AGCO. The lunch was typical of our trip; a buffet comprised of salads, grilled beef, sausage, rice, beans, some kind of flour that you are supposed to sprinkle on everything, Pepsi, Guarana’, and bottled water (sem gas e com gas both available).
Señor Astor Tornquist’s Farm
Following the lunch we climbed back onto the bus and rode to Santa Cruz do Sul (do Sul translates ‘of the South’). Similar to Canoas city, Santa Cruz do Sul has a heavy industrial presence, which is due to the success of the tobacco industry in the region. In Brazil, where tobacco thrives, there do other industries thrive. While the bus passed through the town, we were told that the Virginia variety of tobacco is better than the Burley variety, but is tough to manage its production because the curing process coincides with the Christmas and New Years holidays. Accordingly, tobacco farmers growing Virginia varieties assume long hours during the holidays, as the curing process requires 24-hour monitoring.
Our second tour destination was the farm of Señor Astor Tornquist, who is the 55-year-old son of a farmer. Soybeans, corn, rice, winter wheat, oats (cover crop) and black beans are the crops produced. He surface irrigates 53 hectares (133 acres) of land for rice production. Typical yields include 3,000 kg/hectare for beans and 8,280 kg/hectare for corn. The price for corn during our visit was R$17.00/60 kg. Farm-land in this region is apparently a valuable commodity due to location near Santa Cruz do Sul, as Señor Tornquist claimed he would not sell his farm if he were offered R$20,000/hectare. Señor Tornquist was quick to say that the Brazilian government likes to ask the U.S. government not to subsidize U.S. farmers. A technical question regarding his soil fertilization practices was asked, and it was learned that 650 kg of nitrogen (in the form of urea) is added to each hectare as a normal procedure.
Shortly after this conversation, a yellow New Holland corn combine made its presence known in the corn field, which resulted in a near stampede of Okies running to take pictures of the process; as if, they had never seen a combine. Our guide and our translator (Geraldine and Carla) have no agricultural background or experience, and were quite confused by this reaction. Meanwhile, Señor Tornquist rolled his eyes at the Okies as he puffed on his cigarette. The dangers of photographing working combines quickly became evident, as our own Curtis Liles (yes-the same fellow who was watching for monkeys back at AggieCo) received a near fatal blow to his back from a naked corncob that was thrown from the combine at approximately 98 miles per hour. The Okie farmers who were more experienced in chasing working combines laughed hysterically while covering their crotch with one hand and taking pictures with the other. Fortunately, Mr. Liles’ only injuries were a sore back, a pulled groin, suffered while running from the cobs, and subsequent mental distress from monkey nightmares that were to come later in the night.
Once this excitement was over, we viewed additional combines, tractors and planting equipment. The planting equipment appeared to be modified to fit the requirements of his soil, which impressed Matt Gard, Steven Clay and Brent Rendel. Finally, and on a more serious note, we had a lesson in perseverance, with particular emphasis on personal safety. Before we loaded the bus, Señor Tornquist held up his right arm, which revealed a gnarled resemblance of what once was a hand. He told us that after 40 years of farming, he lost his hand in a combine. At the time of our visit, the injury occurred 1 ½ years ago.
Cachace distillery
We loaded the bus and headed to our hotel for a quick break, before loading back onto 3 mini-buses for our final trip of the day to a local Cachace distillery. Cachace is an alcoholic beverage derived from sugar cane (recall that ethanol vehicle fuel can also be derived from sugar cane, so . . .). Cachace reportedly has its origins from the Negro populations that came to Brazil from Africa. Straight Cachace (i.e. – shots) is robust, pungent, and quickly clears the sinus cavities. It can also help you reach the next fuel station should your vehicle’s guage reach the empty mark.
The distillery is owned and operated by Lizete and Ulrich Höllerman, with help from their son Alexondre. The name of their operation is Fingerhut (like a sewing thimble), because of the thimble-shaped mountain that must be conquered to reach their very remote location. The process is a typical fermentation process. The sugarcane initially is processed with a diesel powered press, and the resulting juice is approximately 15% sugar at the beginning of fermentation. Like all distillers, Fingerhut has its own and unique “special yeast” for converting the sugar into alcohol. Each specie of yeast contributes slightly varying flavor compounds. Once fermentation is complete, the ‘juice’ is placed in copper pots and heated (gas-fired with propanol) to boil off the alcohol, which is later condensed and collected. Copper is the material of choice for distilled products because of its ability to bind sulfur. If copper is not used, the sulfur is carried with the alcohol steam and bottled concurrently with the alcohol. If you have ever smelled or tasted sulfur you already understand the need for copper pots. The product is then aged for 3 years in oak barrels with a charcoal lining 3 mm thick. After aging, the product is bottled in clear bottles, and possesses a pale amber color. Because of their storage limitations, Fingerhut sells approximately 2 barrels worth of product per month. One metric ton of raw sugar cane produces approximately 40-45 liters of Cachace.