The $1.6 billion program aims to increase market access, agricultural productivity, and climate resilience
WASHINGTON DC, NOVEMBER 7TH, 2024 - The World Bank Board of Directors has approved the Transforming Brazil's Agrifood System program, a comprehensive initiative designed to revolutionize the national agrifood system. It will support family farmers by increasing agrifood productivity and food and nutrition security, expanding access to markets, enhancing sustainable management of natural resources, and building resilience to climate change. Over its lifetime, the program is expected to benefit 421,000 family farmers and nearly 1.2 million people living in rural areas.
With a total budget of $1.602 billion, including up to $1.289 billion from the International Bank for Reconstruction and Development (IBRD) and up to $313.20 million from counterpart financing, this program will span 12 states and involve the Ministry of Agrarian Development and Family Farming (MDA) as well as the Ministry of Agriculture and Livestock (MAPA). The program is set to run over a 10-year period, concluding in 2034.
Family farmers make up 77 percent of Brazil's nearly 5 million rural properties and produce most of the food consumed daily across the country. They account for 87 percent of cassava, 70 percent of beans, 34 percent of rice, and 21 percent of wheat production. Additionally, they produce 60 percent of milk and 50 percent of poultry. Supporting these farmers is crucial for sustaining Brazil's food and nutrition security, promoting sustainable economic development in rural areas, and strengthening resilience to climate change.
The new program leverages the expertise and knowledge from across the World Bank Group and its development partners to advise national and subnational governments on improving the delivery of agricultural public goods and services. Governments will be able to choose from a list of tailored activities that align with their specific agrifood system goals, while contributing to broader national efforts to improve access to markets, agriculture productivity, food security, sustainable management of natural resources, and climate resilience. It also provides targeted direct support to family farmers to support the transition for a more sustainable and resilient agrifood system.
The first phase of the program will be launched with a project in Bahia, led by efforts of the state government. This first phase aims to empower family farmers and their organizations-such as cooperatives and community associations-by providing a customized package of support, including technical assistance for farming, business development services, and matching grants to finance the growth and sustainability of agribusiness plans of farmer producer organizations.
The first phase in Bahia will also enhance access to safe drinking water services in rural areas of Bahia, ensuring that families have reliable access to clean and safe water for their daily needs. This will not only improve the health and well-being of rural communities but also reduce the time burden of household chores, particularly for women. Additionally, the project will support efforts to develop a rural water state policy and bring about institutional changes in the water sector to mainstream a strategy for managing sustainable and climate-resilient rural water services.
"This partnership is very important and adds to a set of measures by President Lula's government aimed at strengthening family farming, which plays a fundamental role in transforming agri-food systems. We want abundant and high-quality food on the tables of all Brazilians," said Paulo Teixeira, Minister of Agrarian Development and Family Farming.
"The new project will enable various states and the federal government to pursue medium to long-term development objectives, learn from implementation while achieving scale, and induce replicability of good interventions across the country. Starting in Bahia, the program is paving the way for a more prosperous future for family farmers across several states in Brazil," said Johannes Zutt, World Bank Country Director for Brazil.
Website: https://www.worldbank.org/en/country/brazil
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