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This paper presents an analysis of the main determinants for the increase in Brazilian production and exportation of agro-based products from 1990 through 2013. The analysis led to some interesting conclusions. First, Brazil did not follow a predetermined model calibrated for success in the international agricultural and agro-processed markets. Rather, it altered its budget to support market-oriented agricultural policies in a responsive manner that reflected the constraints and opportunities arising in both the domestic and international markets while taking advantage of abundant agricultural land, a favourable climate, and a willingness to invest by farmers and larger agribusiness companies. Second, increasing agricultural production and capacity facilitated increasing exports of both agricultural and agro-processed products. Third, Brazilian exports of agro-based products were increasing before and after the 2002 through 2008 international surge in food prices. Our econometric model revealed that increased Brazilian agricultural and agro-processed food production and overall world GDP growth, rather than international prices, have been the main drivers of Brazilian agricultural and agro-processed exports. Acknowledgement : This document is an output from a project funded by the UK Aid from the Department for International Development (DFID) for the benefit of developing countries. However, the views expressed and information contained in it are not necessarily those of or endorsed by DFID, which can accept no responsibility for such views or information or for any reliance placed on them.


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