The EU-Mercosur Agreement draws Significant Interest from both within and outside Europe's Farm Gates

Publicado em 05/12/2024

Europe's industry, Commerce, and Services represent around 95% of the GDP of its developed economies. 

*José Luiz Tejon to Radio Estadão

Published on 27th 11 /2024 

Europe's industry, Commerce, and Services represent around 95% of the GDP of its developed economies. 

What, here in Brazil we call "The inside of the farm gate", European Agriculture, has a much more significant role concerning the emotions of their societies,due to the traumas experienced by their populations during wars, along with the events of plant diseases decimating potato plantations, and also in fear of potential conflicts, where food and energy could be used as “weapons”, through embargoes and shortages.  

To complicate matters, we are witnessing an exodus of young people from traditional agricultural European regions.  

As a current example, I mention my Asturian roots, the “Pueblo” of Cuerigo, one of 18 townships of Allen, Spain.

Farmers are also currently used for partisan political polarisation, as pointed out by the creator of the concept of Agribusiness in the world, Professor Dr. Ray Goldberg, from Harvard, who warned in his interview: “Food has the mission to unite the world nowadays polarised and divided by political factions”.

Therefore, the situation surrounding the Carrefour CEO's retraction, communicated through a formal letter sent to our Minister of Agriculture, Mr. Carlos Fávaro, highlights the complexities of agricultural interests in Brazil. This retraction, emphasising the value of Brazilian Agricultural production, comes amid significant financial stakes—billions of euros—linked to the EU-Mercosur Agreement. This agreement has attracted immense interest from various sectors, in Europe and also globally, as it shapes trade dynamics and agricultural policies.

The interplay of these interests underscores the broader implications for international trade and the agricultural market.

European corporations are seeking to expand into global markets with significant growth potential, particularly focusing on Asia and Latin America during their meetings and conferences. These regions are seen as key opportunities for growth and investment, driving strategic discussions over how to navigate successfully and capitalise on these emerging markets.

These objectives take into account the aggregation of value, both in Science and Technology of what we call, in Brazil, "The before the farms' gates, concerning, genetics, digitalisation, systems, and robotic mechanisation.

Regarding post-farm Agrindustrialisation, brands have been created and products and services have been expanded focusing on new consumers in growing economies such as Asia and Latin America, where Brazil is always among the 10 main consumer markets in the world.

Consequently, if French meat arrives in French supermarkets at 12 euros/kg and Brazilian meat at 4 euros/kg, it is quite clear that the Big Game played by EU & Mercosur agreement isn´t soybeans, corn, coffee beans, meat or commodities. 

European business interests are focused on the growth of their industry, commerce, and mainly on value-added services. In these sectors, there´s a strong emphasis on “terroir” and origin designations.

So, Agriculture plays a crucial role by leveraging the high perceived value of these products, such as cheeses, champagne, cognac, wines, and olive oils. This focus on quality and heritage enhances the market appeal and drives economic growth.

Therefore, Brazilian Agriculture will be very welcome as a valuable source of supply, of the “Supply Chain“within the required quality at a very competitive cost for the thousands of business corporations that impact and decide around 80% of the world's Agro-industrial business complex.

However, Brazilian industry, commerce, services such as logistics, finance, insurance, the carbon market, and the biofuels industry are fighting fiercely for the Big Global Capital.

The agreement between the EU & Mercosur will be celebrated! And briefly.

We fully expect to see Brazilian brands rise to prominence and for strategic marketing  plan for thrive and succeed!

Au revoir….

*José Luiz Tejon – PhD in Education-Universidad de La Empresa/Uruguay. Master's degree in Art Education and History of Culture - Mackenzie University. Journalist and Publicist - Harvard, MIT and PACE/USA /Insead in France, Specialisation Academic Coordinator of Master Science Food & Agribusiness Management at Audencia in Nantes/France and FECAP/ Brazil.  Managing Partner at Biomarketing and TCA International.  Professional Head at Agro Anefac.  Writer author and Co-author of 37 books.  Agro Personality Award 2023. ABAG.  Former director of Grupo Estadão, Agroceres and Jacto S/A.