The economic impact of organic production in Brazil: A study based on municipal production hotspots.

Camila De Moura Vogt,Douglas Alcantara Alencar,Adelar Fochezatto,László Vasa

doi:10.1371/journal.pone.0264095

Camila De Moura Vogt, Douglas Alcantara Alencar + Show 2 more

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https://doi.org/10.1371/journal.pone.0264095

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Abstract

The agroecological products market has increased substantially worldwide in recent decades. As a traditional agricultural country, Brazil has followed this trend and has increased the production of certified organic products in recent years. In addition, the country is one of the largest consumer markets in Latin America. This study aims to measure the effects of organic production on the economic development of municipalities through spatial analysis and econometric methodologies. Thus, it estimates the impact of organic production hotspots on the 2017 gross domestic product of Brazilian municipalities and the agriculture gross value added. The results indicate that the organic hotspots had a positive effect on both variables. Therefore, the results corroborate incentives for organic production as an alternative for the sustainable development of the agricultural sector.

Highlights

Organic agriculture has increased its economic importance in the global agribusiness sector
The existence or not of organic production hotspots is influenced by factors related to Brazilian municipalities’ economic, land tenure, and location characteristics
Participation in organic agriculture has increased; the economic effects of production are still unclear for socio-economic development in Brazil

Summary

Introduction

Organic agriculture has increased its economic importance in the global agribusiness sector. In 2017, 69.8 million hectares of production were registered globally, which generated 97 billion U.S dollars [1]. This represents an increase of 102% in the total cultivated area compared to 2008 and an increase of 93% in the total value traded. The number of producers increased during this period, from 1.4 million producers in 2008 to 2.9 million in 2017. In Brazil, the increase in the number of organic producer certifications and optimistic consumption forecasts reflect the growing importance of this segment for the country’s agribusiness sector [2]. The country is the largest market for organic produce in Latin America and the Caribbean, according to 2017 projections [1]

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