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Soybean production

PRIMAVERA PRODUCTION CAPACITY
Primavera has technical-economic viability, for culture, processing, storage and delivery of the product SOY in grains in amounts, quality and at a predetermined place.
We have plantations of soybean near the cities of Silvanópolis, Porto Nacional, Rio do Sono and Monte do Carmo, all located in the State of Tocantins and also near the city of Correntina, in the State of the Bahia.
We have 350,000.00 hectares , production capacity has the possibility to reach 1 million ton. When the state will increase the production to 4 million ton, we alone will represent 25% capacity. We can increase that by adding other farmers under our umbrella when we organize our international marketing and markets.
The first register of culture of soybean in Brazil occurred in the city of Santa Rosa (State of Rio Grande do Sul). From the year of 1940 the soybean, in Brazil, started to have an economic importance, its evolution was constant and increasing and began to be cultivated in several States, whereas currently the greatest producer is the State of Mato Grosso, followed for by the States of Paraná and Rio Grande do Sul. Great agricultural borders hace been opened, with significant increase of the planted area. States as Goiás, Mato Grosso do Sul, Bahia, Tocantins and Maranhão, had given their important contribution so that in the year of 2003 Brazil was nominated to as the 2nd world-wide producer, being responsible for the production around 27% of all soy produced in the whole world. For the year of 2009 production is estimated in about 58.5 million metric tons.
Opening borders and sowing cities, the soybean led the implantation of a new civilization in the center of Brazil, making progress and development of a depopulated and devaluated region. It has led to sprouting cities in the emptiness of the open pasture, and has made possible the development of the Brazilian poultry and pig farming, whereas the soy is the basic ingredient of its feed.
 

FUTURE PERSPECTIVES
Going through a prospective analysis on the dynamic agro business of the Brazilian soybean and taking as reference the current reality, it seems pertinent to affirm that:

* The consumption will grow and consequently the demand for soy in the world, whereas the human population will continue increasing;

* The purchasing power of this population will continue developing itself, predominantly in Asia, where there is the greater potential of soy consumption;
* The fear of the mad cow decease will keep the consumption of pork meat and chicken high, whose feeding is made with rations based on soy, whose demand will grow. Due also to the prohibition in Europe of the meat flour use in the rations for bovines;
* Not traditional industrial uses of the soy, such as biodiesel, inks, varnishes, among others, will increase the demand for the product;
* The internal consumption of soy will grow, stimulated by official policies designated to use the enormous productive potential of Brazil, that is excessively dependent on the external market;
* Protectionism and the subsidies of soy, sponsored by the rich countries, will tend to diminish by the logics and pressure of the markets and the World Trade Organization , increasing, consequently, the international prices, that will stimulate the Brazilian production and exports;
* The production of our main competitors (U.S.A., Argentina, India and China) will tend to self stabilize due to the lack of available areas for expansion of its territories;
* The productive chain of the Brazilian soy will tend to decrease itself from the heavy taxation incident on it, in order to develop its competitiveness in the external market;
* It can also be estimated, by the trends of the current picture of the Brazilian agriculture, that the production of the oleaginous in the Country will each time become more concentrated in the great properties of the mid-west and northeast, in detriment of the small and medium properties of the Southern Region, in which the owners, due to lower competitiveness in the production of grains, will tend to migrate to other agricultural activities (milk production, creation of swine and birds, culture of fruits and greenery, ecotourism, among others), because they are more intensive in the use of workmanship hand, “generally abundant merchandise” in small familiar properties, where scarce resource is the land.

Under these considerations, it seems rational to believe in the future of Brazilian production of soy, among the great world-wide producers of the oleaginous, Brazil appears as the country that presents the best conditions to expand the production and supply the expected increase with the world-wide demand. Just in the ecosystem of the open pasture, this country owns more than 50 million hectares of virgin land and available for immediate incorporation to the production of soy. With exception, perhaps, of Argentina, that still will be able to grow until a maximum of ten million hectares, the area cultivated with soy in U.S.A., in the China and India, (that together with Brazil produce more than 90% of the world-wide soy), will only grow if they reduce the areas of other plantations.

With exception of Brazil, the agricultural areas of all other producing countries are almost or totally depleted.

 

CURRENT SITUATION OF THE CULTURE OF THE SOY IN THE BRAZILIAN STATES
Agricultural producers of all the country and also from the outside have been installing themselves in the State of Tocantins and south of the State of the Bahia, attracted by the low prices of land, acquiring rural properties and also leasing areas from third parties, basically aiming at the plantation of Soy.
The Paraiso Project will contemplate agricultural producers with wide experience in the agricultural market, many of them with more than 30 (thirty) years only in the culture of soy. The totality of soy to be produced preferably will be destined to exports in grains and in the future it is a desire of these producers to export it in the industrialized form.
Due to the fact that both States possess great agricultural areas, whereas some are still unexplored, it is perfectly feasible that they become one of the most important cellars of grains of the Country. Just with the implantation of this project, there will be a significant growth in the production of these Brazilian States.

 

GROUND, CLIMATE, TOPOGRAPHY, VEGETATION AND NATURAL RESOURCES
The great region of culture is constituted of open pasture with patches of stunted vegetation with small regions of ciliate bushes, clean fields, Amazonian vegetation and areas with predominantly flat topography.
The predominance is of light ground, with average texture, classified as “latosols” (a leached red and yellow tropical soil).
There are considerable areas of sandy soil, classified as quartz’s sands, and that they are being cultivated with great cultures as the Soy, having the necessity of greater care with these areas, due to the easy degradation.
The areas consisting argillaceous ground, above of 30% of clay, are less common in the region, but they are part of a significant area.
The areas destined to the culture of the Soy of the Paraiso Project are constituted of 65% sandy soil and 35% of argillaceous ground.
The climate of the regions are essentially tropical, with two defined seasons, that are, season of droughts and season of waters, with a period of rains that goes from October to April and a period of droughts that goes from May the September. The annual average precipitation is of 1.700 mm, however, there are regions where rains are above 2.000 mm/ per annum.

The period recommended for the plantation of the Soy in the region, is from October 30th to December 15th, with small variations due to possible delay of the beginning of rain season.
The region is rich in natural resources, having great potential for the development of irrigated agriculture, counting on many Rivers and perennial streams, and also the Great Lakes that are in formation with the construction of the hydroelectric stations at the Tocantins River.
In the basin of Araguaia River there are fertile irrigated valleys, having currently more then 120,000 ha of systemized areas, with two annual plantations, due to the facility of irrigation in the period of the droughts.
In the droughts many cultures are planted, such as: soy, beans, corn, sunflower, cucurbitaceous such as watermelon and pumpkin, among others, having a great potential for introduction of new cultures and production of seeds.
The situated area is in the State of Bahia, notabilly in the municipality of Correntina, denominated the Campinas Farm, which is located between 2 (two) rivers: Rio do Meio and Rio Santo Antonio.
The regions well are served of calcareous deposits, not beeing more than 180 km distance between each other in the majority, which increases the potential of production at the region with significant low transport costs.


INFRASTRUCTURE OF THE REGION COVERED BY THE PROJECT
The States of Tocantins and Bahia already count on a vast tarred road mesh and a great number of highways in pavement phase.
With regard to the infrastructure for storage and drying, it will be insufficient to absorb the increase of the production, lacking, therefore, the construction of some units for drying and storage, proportionally as the farming areas will be increasing.
All the properties of the project have electric energy and are surrounded by state and federal highways, presenting good conditions for the draining of the production.


GUARANTEES
The offered guarantee is pledge of the harvest of 1st degree, linked through the CPR- CÉDULA DO PRODUTOR RURAL (Rural Product Certificate) issued in 10 (ten) bonds, covering 1 (one) year/harvest, created and supported by Law 8,229 of 08/22/1994, 02/14/2001 Law 10,200 of and resolution 2324 of the National Monetary Council of Brazil.


AGRICULTURAL TECHNOLOGY
Initially the planting will be done in the conventional form, with later changes to direct plantation. The change of the type of plantation and the genetic improvement of cultivating will make possible the productivity gain as we estimated above.