Position Paper

Country: Brazil

Topic: The question of food security

Committee: ECOFIN

Honorable chairs, fellow delegates

Overview of the topic:

Brazil is a key agricultural and industrial power with the strongest economy in Latin America.
However, despite recent improvements in income distribution, poverty remains widespread, with
income inequality a significant challenge at the root of rural poverty.
Your country’s stance:
Two of the main causes of poverty in the country are extreme inequalities in land tenure and a
lack of access to formal education and skills training. In recent years, the government has established
programs designed to address these challenges, including the 2010 Technical Assistance and Rural
Extension Law which includes a National Policy to provide support to smallholder production. Subsidies
on marketing and stocking of several key commodities (maize, wheat, and milk) were also increased in
2010 to reduce the impact of the global economic crisis on rural areas.

Past actions undertaken by your country at a national and/or international level:

The Guaranteed Price Policy is the main Brazilian agricultural policy for achieving food security
and is aimed at small and medium-sized farmers. The primary idea of this policy is to ensure that
purchase prices at least cover production costs, plus a certain level of profits. The government buys
surplus crops, paying higher prices than those in the market. This mechanism reduces risks for crop
producers during the harvest and is an important mechanism to reduce the price volatility that is
intrinsic to the agricultural sector. When prices fall below the minimum level established by
government, measures are taken such as buying crop surpluses from small farmers, prices equalization
and financing the building up of stocks of selected crops. The minimum guaranteed price for crops
considered to be regional and summer harvests is defined by government. This policy is aimed at
achieving economic growth, increasing farmers’ income and increasing the competitiveness of crop
exports, when applicable.

In January 2003, Brazil’s Zero Hunger Program was launched. The program comprises 60
different initiatives with a goal of providing food access to 11.4 million families within five years. At the
peak of the global food prices crisis, the Brazilian government’s first response was the creation of the
More Food Program by the Ministry of Agrarian Development (MDA), a program intended to equip,
organize and strengthen small farms and counter the global food crisis and the recent increase in prices
of agricultural commodities worldwide.
 Proposed solutions and conclusion:
Finally as recent food price shocks have led to nearly a billion people facing hunger, it is
essential to focus on immediate assistance for the most vulnerable by developing social protection, for
instance through the provision of cash transfers targeted at poor women and young children. Support
programs such as food stamps or vouchers can also help to shore up consumption while meeting
immediate food needs, particularly during times of crisis. Simultaneously, efforts should be made to
ensure minimum wages are implemented for all workers and adjusted to reflect changes in food prices.