Brazil’s rural production could increase US$18.8 billion with increased connectivity – study

RIO DE JANEIRO, BRAZIL – The gross value of Brazilian agricultural production (GVaP), estimated at R$1.057 trillion (US$199 billion) for 2021, could grow by up to R$101.47 (US$18.8) billion with the increase of connectivity in rural areas through the telecom model, said on Wednesday the Ministry of Agriculture, based on a study developed by Esalq/USP.

Currently, only 23% of the Brazilian agricultural area has some degree of internet coverage, the survey showed.

In a first expansion scenario, the transmission capacity of 4,400 towers currently existing in Brazil would be used. This would enable increasing coverage from the current 23% to 48%, capable of providing a 4.5% increase in GVaP with a gain in productivity projected at R$47.56 billion.

A second scenario includes the installation of 15,182 new towers, which would be enough to supply a final coverage of 90% of connectivity demand in the field and would provide a 9.6% increase in GVaP of R$101.47 billion.

“Our rural producers demand technology and are ready to receive more innovation. Connectivity promotes technological progress in the field. And it also promotes a real proximity of the rural environment with large urban centers,” said the Minister of Agriculture Tereza Cristina in an online event to launch the study.

She also said that connectivity can modernize agribusiness and is a strategy to attract young people to the countryside. “Our rural population is aging and the way to attract young people to the countryside is through technology.”

The Minister also delivered the study to Minister of Communications Fábio Faria and pointed out that it will guide unprecedented initiatives to increase rural connectivity through broadband internet technologies such as satellite, fiber optic cable, and telecom, including the new 5G generation.

To start being used in Brazil, 5G technology is pending the auction of the new internet generation, scheduled for the second half of this year. Meanwhile, 20 pilot projects will be implemented by the Ministry of Communications, 7 of them in rural areas.

“We need to implement this technology to universalize mobile coverage in rural areas,” the Minister of Communications said at the event.

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