THE ROLE OF
LOCAL FOOD PRODUCTION TO REDUCE FOOD LOSSES AND IMPROVE REGIONAL ECONOMY
João Roberto Maiellaro
PPGEP/UNIP and Fatec Zona Leste, Brazil
E-mail: joao.maiellaro@fatec.sp.gov.br
João Gilberto Mendes dos Reis
PPGEP/UNIP and Fatec Zona Leste, Brazil
E-mail: betomendesreis@msn.com
Fernando Juabre Muçouçah
Fatec Ferraz de Vasconcelos, Brazil
E-mail: f292dir@cps.sp.gov.br
Oduvaldo Vendrametto
PPGEP/UNIP, Brazil
E-mail:oduvaldov@uol.com.br
Robson dos Santos
Fatec Zona Leste, Brazil
E-mail: robson@fatec.sp.gov.br
Submission: 22/08/2018
Revision: 13/09/2018
Accept: 24/09/2018
ABSTRACT
Brazil
is one of the most important agricultural producers worldwide. However, the
nation faces logistics and distribution matters due to the size of the country.
Therefore, local food producers are fundamental to Food Supply Chains
performance. They are near to the consumers and reduce the logistics impacts.
To understand the role of local food producers, this study analyzes the Local
Food Production in Mogi das Cruzes and the support of the local government. The
city is the hub of Sao Paulo's metropolitan green belt. We collected data
directly from the Municipal Secretariat of Agriculture. The results suggest
that the local government performs technical and legal actions and there is a
concerning in supporting the local food producers, keep on this economic
activity in a good level of efficiency.
Keywords: Local
Food Production; Green Belt; Mogi das Cruzes city
1. INTRODUCTION
Brazil
is one of the most important countries in
agribusiness of the world. An estimation
of 2017 for the Brazilian harvest of cereals, vegetables and oleaginous totaled
221,400,000 tons, 20.3% higher than 2016 when the production reached 184
million tons. The estimated harvested area is 59,900,000 hectares in 2017, that
represents an increase of 4.9% compared to 2016, with 57,100,000 hectares.
Rice,
corn and soybeans are examples of very important products of this group, which,
together, accounted for 93.5% of total
estimated production and 87.4% of the harvested area. Compared to the previous
year, there is an increase of 1.9% in soybeans, 10.3% in corn and 1.2% in rice.
About production, there was an increase of 11.8% for soybeans, 10% for rice and
38.9% for corn (IBGE,
2017).
From a supply chain perspective,
the globalization in the agribusiness sector has influenced Food Supply Chains
(FSC) that are affected by increasing the distance between food production and the consumers. This
situation not only has enlarged emissions of greenhouse gases but also has
decreased the relationship between local food producers and consumers (BOSONA;
GEBRESENBET, 2011).
Another
fundamental factor relies on the fact
that distance raises the food losses along the supply chains. The Food and
Agriculture Organization of United Nations (FAO) estimates that one-third of
all food produced globally for human consumption is lost during the stages of
production and transport or wasted after the food purchasing, during the stages
of cooking, sorting, and consumption (FAO,
2013).
Indeed,
packing, storage, inventory management and
transportation can be very challenging for FSC. There is often significant time pressure on post-harvest
activities as most agricultural products are perishable. Hence, a postponement in transport may cause high losses (BEHZADI,
et al., 2018).
Currently,
one of the solutions analyzed to reduce these losses in the logistics process is increase the participation of Local Food
Producers. There is a global movement in the sense of offers conditions for
local producers who attends this demand. In Brazil is not different and many municipalities are
developing assistance programs to these producers that involve investments and
buy products.
Mogi
das Cruzes, for instance, considered the most important
city in the green belt of the metropolitan region of São Paulo, produce and
supply several types of food and flowers beside employed a huge workforce. Despite the importance of the
city production some questions need to be answered as for how does the local
government supports and manage the local
food production? how does the local
government monitor the activities of local production and how does the local food is
sold nearby with the support of the local government?
This paper aims to investigate the local food
production in the Mogi das Cruzes city, and to
bring a wide range of information about the local government activities
to help and support local food producers. This knowledge could be used to find
solutions to improve production in distribution in the city and at the same
time contribute with benchmarking information for other cities in Brazil and
the World
The
paper is divided as follows: a literature review, methods, results and
discussion and finally, it presents the conclusions and suggestions for future
studies.
2. LOCAL FOOD PRODUCTION
The
literature discusses concepts of Local Food Production (LFP) often. It is
difficult to draw conclusions about the
local economic impact of local foods systems. Many studies perform narrow
geographic and market scope. It is challenging to make comparisons establishing
operational, logistics and government support aspects. Micro-scale business
concepts have become more common around the world, and there is increasing
interest in these among consumers (MIGLIORE
et al., 2015). Consumers are in pursuit of different sources
of food produced near their home (MIGLIORE
et al., 2014; NIE; ZEPEDA, 2011).
Short
Food Supply Chains (SFSC) allow understanding how and where food is produced,
enabling the development of a trust relationship between consumers and
producers. The main methods that could help researchers to achieve certainty
are implemented to SFSCs in face-to-face relations with consumers and
connecting products to their regional features (AGGESTAM
et al., 2017).
SFSCs
are more accessible to producers who speak the same language as their consumers
and who share similar social, economic and environmental values (JAROSZ,
2011).
The
term local food slips effortlessly of the tongue and while an everyday
common-sense approach might suggest that local food is produced and consumed
within a scarcely well-defined geographical area, there appears to be no
generally agreed or widely adopted definition.
One
set of definitions is essentially based
on geography and looks to define local regarding
the distance between producers and customers, though there is not clear agreement of a limiting distance, or in terms of local
authority boundaries. Thus, one of the definitions of local recognized by the
National Association of Farmers’ Markets (NAFM) is in terms of the radius from the market and while the association
suggests that 30 miles is ideal, and 50 miles is however acceptable (JONES
et al., 2004).
While
the term “local” food is usually seen,
there are no criteria. When asked to use political borders, customers generally
define the term as food grown within a county or neighboring place, or within a
certain city or state. Furthermore,
political boundaries do not appear to be the best delineation to define local
food.
Scaling
food production is a world challenge. Encouraging the involvement of mid-sized
farms looks to be a classic solution because it can expand the accessibility of
local food while providing alternative revenue streams for troubled family
farms. Many barriers stand in the way of such a development. The logistical,
structural and regulatory barriers to
increased scale in local food systems are well known. Limited understanding about the way in which scale developments
affect the perception and legitimacy of local food systems can be a relevant
matter (MOUNT,
2017).
Many
familiar that defend the local food production might suggest that important pieces of added value within local
food systems are generated by the
reconnection of producer and consumer, the direct exchange through which this
occurs, and the shared goals and values that provide the basis for reconnection
(Mount,
2017).
The
necessary data to measure the economic local
impact are highly costly to obtain, and researchers must agree on a standard
way of accounting for the costs involved of produced and purchased local foods
or on a standard set of economic modeling assumptions. Many questions
surrounding the economic impact of local foods remain unanswered and could be
raised by future researches, e.g., if local food systems help the city-rural
economy or if the economic benefits of expanding local food systems might be
unevenly distributed (USDA
ERS, 2017).
According
to the 2001 census in Brazil, in 1991, 233,000 people lived in rural areas of
Sao Paulo city and in 2,000 that number
reached 620,000 inhabitants. It suggests an interesting
gap regarding the definitions of what is considered rural and what is
considered urban population. This movement has happened mainly in peripheral
areas, occupied by informal settlements and irregular land subdivisions which
means this urban population is occupying
a rural area, that has lost this main
characteristic. Urban population is expanding the boundaries, in areas which are still considered rural by
policies and laws (BARBIZAN,
2011).
2.1.
The
Importance of The Green Belt of São Paulo And Mogi Das Cruzes City
Until
the middle of the 20th century, Brazilians were not aware of the wide variety
of vegetables before the arrival of Japanese immigrants, characteristically
diet from the sea and plants. These immigrants had a key role in Brazilian agriculture, bringing new species of
vegetables and food in general. Many Japanese immigrants live in the Alto Tietê
region and they have dedicated their
entire lives to agriculture. The arrival of these immigrants was established through an immigration
agreement between Japan and Brazil at the beginning of the 20th century (INSTITUTO
FLORESTAL, 2013).
Mogi
das Cruzes is considered as the main town in the region of Sao Paulo’s green
belt, and it has the largest center of production of vegetables, fruits and
flowers of Brazil, with a relevant share
of the national market of mushrooms, persimmon, loquats, vegetables, and flowers.
There are a large presence of farmers with Japanese origin (SANTOS;
BELLO, 2014).
Among
the legacies left by immigrants and their descendants, there are many
techniques of agriculture, as the development of new species of vegetables and
flowers, including orchids and various foreign dishes (DA
SILVA et al., 2015).
Mogi
das Cruzes city is the main food supplier of the Metropolitan region of São
Paulo. São Paulo city is the biggest city in Brazil and one of the biggest
cities in the world. This region is the largest pole of national wealth. The
Gross Domestic Product (GDP) corresponds to about 57% of the total of the state
of São Paulo. The cities that belong to metropolitan region of São Paulo are Arujá,
Barueri, Biritiba-Mirim, Caieiras, Cajamar, Carapicuíba, Cotia, Diadema, Embu
das Artes, Embu-Guaçu, Ferraz de Vasconcelos, Francisco Morato, Franco da
Rocha, Guararema, Guarulhos, Itapevi, Itapecerica da Serra, Itaquaquecetuba,
Jandira, Juquitiba, Mairiporã, Mauá, Mogi das Cruzes, Osasco, Pirapora do Bom
Jesus, Poá, Ribeirão Pires, Rio Grande da Serra, Salesopolis, Santa Isabel,
Santana de Parnaíba, Santo André, São Bernardo do Campo, São Caetano do Sul,
São Lourenço da Serra, São Paulo, Suzano, Taboão da Serra e Vargem Grande
Paulista.
A
study demonstrated the importance of the green belt of Sao Paulo to preserve the
environment, watershed protection areas, and water production. It was
concluded, however, that it is difficult in adopting laws on the environment,
low management capacity of producers, and obstacles in obtaining financing (QUEIROZ,
2013).
One
of the reasons that prompted the declaration of the green belt of São Paulo as
a biosphere reserve, it is due to the fact it surrounds one of the planet's
largest cities that concentrates 10% of the Brazilian population, with very low rates of green area per inhabitant.
The green belt brings a quality of life to the metropolis of Sao Paulo,
supplying water and a variety of food. Rivers cut through the urban area, and
this region is a habitat of great
biodiversity of species, protects the soil from heavy rainfall, and ensures
food safety of cities of the metropolitan area (INSTITUTO
FLORESTAL, 2013).
The
vegetables that are produced in the east region of the green belt, not only in
Mogi das Cruzes but also in cities as Suzano,
Biritiba-Mirim, and Salesópolis, occurs through a direct transaction with the
small local retail or selling the central supermarkets supply chains. In case
of sale to supermarket chains, the producer is responsible for the cost of
shipping and other fees required by the company,
however, it has a regular demand (SATO et al., 2006).
3. RESEARCH METHODOLOGY
As
described in the introduction, the purpose of the study is to generate an
overview of the Local Food Production. We adopted a case-study approach to
allow a deeper insight into the features of LFP. A case study as a research strategy often
emerges as a reasonable option for
students and other new researchers who are seeking to undertake a minor scale
research project based on their workplace or the comparison of a limited number
of organizations.
Case
studies are widely accepted because they may offer insights that might not be achieved with other approaches. Finally,
case studies have often been seen as a
useful tool for the preliminary, exploratory stage of a research project, as a
basis for the development of the framework and the methods that are required for surveys and investigations (ROWLEY,
2002).
To investigate LFP, Mogi das Cruzes city was chosen
for two purposes: for its significance in São Paulo urban area where the city
is in charge to produce and to distribute the main portion of vegetables and
also, due to the engagement of Secretary of Agriculture of the city with LFP
and its aim to share the data to develop studies that can contribute to
improving the delivery of produced food in the city.
This
study was conducted through interviews
with the team of the Secretary of Agriculture and professionals of this
division. To identify general aspects of the food production in Mogi das
Cruzes, they were asked to turn information available about the role of the
government of the city in managing and supporting the local food production. In addition, they were asked to demonstrate
studies, researchers and developed statistics by the local government in the
past years. A documental research was also conducted including data such as food
production, sales, employment, and the range of performed activities by the local
government.
4. RESULTS AND DISCUSSION
Sao
Paulo is one of the largest cities in the world. The estimated population is
12,106,920 people, and the human development index is 0.805 (IBGE,
2017).
Different foods types consumed in Sao Paulo are
produced in the green belt of the city. The most influential city of the
green belt is Mogi das Cruzes. The city
is far 60 km from São Paulo city. Figure 1 shows the location of Mogi das
Cruzes in the metropolitan region of Sao Paulo.
Figure 1: Location of Mogi das Cruzes city
The
city of Mogi das Cruzes produces a wide range and different types of food such
as fruits, vegetables, mushrooms, quail and ostrich eggs, rabbit meat and goat
meat. The flowers production is considered
a substantial activity in the city as well. Figure 2 provides the main products
of the city for territory.
Figure
2: Areas of food production (Authors, 2018)
The
monitoring and supporting of the local food production by the local government
is a duty of the Secretary of Agriculture. It was
founded in 2012, with the investment of BRL 974,000. The team is
composed of 15 professionals that perform a wide of public activities, as can
be seen in Figure 3.
Figure
3: Activities of Secretary of Agriculture
(authors, 2018)
In
Figure 3 there are three subsectors that perform
a wide range of activities. The first subsector (Supplying) takes care of the
sales channels supported or managed by the government. There is two main sales
point maintained by the Mogi das Cruzes public administration.
The
local government supports the Municipal market and the Producer market where
food producers sell their goods, paying a rent
for the government. The local government manages the street markets, retailers,
fish markets and night markets. The local producers have a license to sell the
food production paying fees for the government of the city.
The
municipal market is located in a rich area of the city. Its daily activities
occur in a building of 2,000 square meters. The building has 113 stores that
generate approximately 1,000 jobs, considering the direct and the not direct
employees. The flow of people is around 3,500 per day. The annual sales are
approximately BRL 60,000,000.00.
The
producer market is established in an area
where local producers can sell products in trailers, shops, and stands, just on
Sundays. This business generates around 2,000 employees and the sales are approximately BRL 100,000,000.00 per year. Other
minor markets and retailers generate
about 1,200 employees and their sales are
approximately BRL 40,000,000.00 per year.
Table 1: Supplying of local food (Source: authors, 2018)
|
Segment |
Selling locals |
Employees |
Anual Sales (BRL) |
|
Municipal market |
113 |
478 |
60,000,000.00 |
|
Producer market |
232 |
928 |
100,000,000.00 |
|
Street markets and retailers |
460 |
1185 |
40,000,000.00 |
|
Total |
805 |
2591 |
200,000,000.00 |
The
second subsector is farming. The main
objective of this subsector is supporting local producers and stimulating de
food production. Moreover, intents to simplify the technical support to the
local producers. The subsector is divided
into these following categories:
·
Horticulture play: lettuce and similar vegetables,
parsley, chive and similar vegetables,
bulbs and tubers as potato, sweet potato, carrot, turnip, cassava, garlic,
onion, beetroot, cucumber
·
Fruits: Khaki (rama
forte, giombo, and fuyu types), medlar
(fukuhara and mizuho types), atemoya (thompson
and generic types), lemon, grape, banana,
nectarine, avocado, pear, lychee, passion fruit, peach, tangerine, guava and
plum
·
Floriculture: flower in vases, cut flowers, ornamental
plants
·
The culture of fungi: edible mushrooms (champignon,
shitake, white shimeji, black shimeji, pleurotus,
portobello, mushroom of the sun, eryngui, nameko, and enoki
·
Livestock: cattle for meat production, cattle for milk production, beekeeping,
aviculture, posture poultry, goats, sheep, quail culture and fish farmingMogi
das Cruzes has approximately 1.8 million animal calves. It is considered the
largest producer of orchids and hydrangeas of Brazil and it concentrates 60% of
producers of mushrooms of the country. Table 2 shows data about production and
sales.
Table 2: Farming production and sales (Source: authors, 2018)
|
Segment |
Production |
Unit |
Sales per year |
|
Horticulture play |
560 |
1000 tons |
BRL 450,000,000.00 |
|
Fruits |
31 |
1000 tons |
BRL 60,000,000.00 |
|
Flowers |
12 |
millions of vases |
BRL 100,000,000.00 |
|
Fungi |
4,7 |
1000 tons |
BRL 22,000,000.00 |
|
Livestock |
1,8 |
millions of animals |
BRL 90,000,000.00 |
|
|
BRL
722,000,000.00 |
||
Attendance
is the third subsector. Improving unpaved roads
and exemption of taxes have been achieved by this subsector.
The
unpaved roads are severely damaged by the traffic mainly in rainy periods. Local producers consider it
is necessary a continuous improvement to decrease the food losses through the
transport. During the current year, the local government or commercial partners
improved 76 km of roads. The expenses were BRL 3,618,000.00.
The
Exemption Program of Property Tax Territorial Urban, collected as a Rural
Territorial Tax, guaranteed by municipal law, benefits the agricultural
activity in areas considered as urban zones. The requests amount of the benefit
is shown in Figure 4.
Figure 4:
Requests of the exemption program
A
range of other activities performed by the attendance subsector as listed
below:
·
Instituto Nacional de Colonização e Reforma Agrária
(INCRA) station, where the food producers can obtain licenses need for their
activities (about 180 attendances by year)
·
Rural safety meetings – food producers can present
their safety proposals to the local police
·
Public lights – lamps are installed in critical places
in the rural zone, like schools, bus stations, and street crossroads
·
Proposal and monitoring of projects as:
·
PNAE – Programa Nacional de Alimentação Escolar
(74.900 kg of vegetables purchased by local producers in 2016)
·
PAA – Purchasing of the food program
·
Crop launching (support for producers to calculate and
sales prospecting)
·
Including local food in the school’s children meals,
like mushrooms, vegetables, and fruits
·
CAR – Cadastro Ambiental Rural – a partnership with
The Nature Conservancy.
·
Rural producer market
·
New partnerships for roads maintenance
·
Mercado Municipal safety program (safety types of
equipment)
·
Supplying natural gas by pipeline instead of gas
cylinders
4.1.
Future Projects of The Local
Government
During
the interviews, it was possible to identify information about the planning of
local government of Mogi das Cruzes city for the next years. There is a program
called Mogi 2040, where specialists, teachers, researchers, and government
members work for finding new possibilities of supporting the local food
producers. The main actions planned for the next 30 years are creating a Center
of Educational Development, Scientific and Technological of Agribusinesses,
creating a sector of Familiar agriculture business and production, marketing
agribusiness program, agro production certification, farmer certification,
higher efficiency of the maintenance of roads process, agro-tourism program,
familiar activities program and legal land property program.
The
potential of the city of Mogi das Cruzes in consolidating itself as the main
food producer city in the metropolitan region of Sao Paulo is based on
different factors. The city has a privileged strategic location, close to the
city of Sao Paulo, Guarulhos airport, the port of Santos and Dutra highway that
links the two largest cities in Brazil, Sao Paulo and Rio de Janeiro.
The
natural beauty of the region is also considered as a differential factor
because it can attract tourists and help in attracting Government and private
investments. The biggest challenges for
the city of Mogi das Cruzes for keeping your role in food production in the
coming years are the lack of training and qualification of the workforce, the
lack of professionals, the preparation of the infrastructure, the family
succession of properties and water scarcity.
5. CONCLUSIONS AND OUTLOOK
According
to the presented literature review, Mogi das Cruzes is considered as the main town in the region of Sao Paulo’s green
belt, and it has the largest center of production of vegetables, fruits and
flowers of Brazil, with a relevant share of the national market of mushrooms,
persimmon, loquats, vegetables, and flowers.
In this study, the main purpose was to explore
information of many aspects about local food production using as a case study
the city of Mogi das Cruzes, considered as the most important city of the green
belt of Sao Paulo, due to its wide range of food types raised in an area that
is near of the biggest and the most important metropolitan area of Brazil.
It
was asked how the local government
supports and manage the local food
production, how the local government monitors the activities of local production and how the local food is sold
nearby with the support of the local government. The findings of this study
suggest that the local government performs technical and legal actions and
there is a concerning in supporting the local food producers, keep on this
economic activity in a good level of efficiency and diversity.
The
team that is in charge in the Secretariat of Agriculture accomplishes an
assortment of actions, taking care of supplying and local sales issues, farming
requests. They keep a department for attending and helping food producers in a
wide of subjects as taxes, roads maintenance, and licenses.
The
city of Mogi das Cruzes says that there is no sufficient official data to
support the strategic management of the Secretariat of Agriculture. Surveys are
expensive and slow to be performed. Data collection from the producers,
landowners, and occupiers of settlements, which are often poor people with low
educational qualifications, are obtained with a lot of resistance and distrust,
which turn the researches very complex. In
addition, failures of launched programs by previous local governments
keep the producers away and cause unknown and underutilization of the departments services.
The
present study should prove to be particularly valuable to raise more ideas
about on how the food production is supported
in Mogi das Cruzes city and why this region is so important for the food supplying for the biggest metropolitan area of Brazil. New researches that allow
bringing more knowledge about the provided services by the City Council and the
problems faced by local food producers, especially on land grown by family
farmers, are vital to reducing the stresses and difficulties of communication.
The
local government can help local family producers with training programs. The
Secretariat of Agriculture has in its staff, specialized technicians whom can tutor producers on legal issues,
productivity, quality, logistical operations including inbound and outbound.
Training can improve the dialogue between local authorities and producers to a
close, reducing eventual underutilization
of the offered services by the local government.
The
scope of this study was limited to the information available in the prefecture
of the Mogi das Cruzes. It was stated by the team of the local government that
there are no official data about the local
food production of Mogi das Cruzes enough to support all the strategic
planning, and to generate these data through specialized companies of research is
expensive.
Further
research should be undertaken to investigate the results of the investments and
actions from a producer point of view and the local community in general. The
small quantity of data did not allow to know what are the difficulties that
producers have in logistics, labor, funding, purchasing of fertilizer, seeds
and equipment and the various factors of production.
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