Brazil can become the first global biodiversity power, offering integrated products spanning crop farming, cattle ranching and forests. This new focus for agribusiness would be a way to circumvent global warming, which is projected to worsen considerably, according to climatologist Carlos Nobre.
The specialist was recently a guest on SeguroCast, CNseg’s podcast, to discuss the impact of climate change on agribusiness and its consequences for the insurance industry.
Even if the countries that signed the Paris Agreement meet their targets for reducing greenhouse gas emissions, according to the climatologist’s calculations, a 2 Celsius degree increase in world temperatures would already be disastrous for agricultural production, especially in equatorial nations. “Output of grains, such as corn and soybeans, would be harmed, even with the advancement of technologies and genetic improvement,” he says.
FIDES Rio 2023
Among other topics, FIDES Rio 2023 – an international insurance industry event that will take place from September 24 to 26 in Rio de Janeiro – will debate climate change and its impacts on the insurance sector.
Diversify to face changes
According to Nobre, one solution would be to diversify consumption items by harnessing tropical biodiversity, such as açaí berries grown in the Amazon, which already generate billions of dollars in revenue. “Around 80% of the world’s people only eat 13 types of food, including grains and animal proteins,” he says. “Brazil has huge capacity for more resilient and sustainable products, with great economic potential.”
He also says that a mixed-product model in rural areas is a much more profitable path, as well as protecting the environment. Crops can combat land degradation and boost the fertility of pasture land. Meanwhile, native trees offer animals a haven to escape the heat. “In extensive livestock farming, when there is shade, cattle gain 200 grams more per day and milk production can be up to 20% higher,” he explains.