Bahia State, Brazil

The present study is part of an effort
by the World Bank and the State of Bahia to assess
agriculture sector risks as a contribution to the strategic
economic development and poverty reduction agenda of the
state government. It is composed of two phases: an
agricultural sector risk identification and prioritization
(volume one) and a risk management strategy and action plan
(volume two). The study provides practical elements for the
implementation of the Bahia sustainable rural development
project - named Bahia Produtiva, which is currently
implemented by Regional Development and Action Company of
Bahia (CAR) and is financed by a World Bank loan. Risks in
Bahia’s agricultural sector are highly concentrated in
soybean, maize, cotton, cacao, fruits, vegetables, and
beans. There are a number of relatively frequent (1 in 3, 1
in 5 and 1 in 10 year occurrence probability) risks that
have moderate expected impact. These risks are climate
(drought), pest and diseases, and price volatility. Although
livestock production is greatly exposed to sanitary risks,
Bahia has not suffered catastrophic animal or plant health
events in recent years. Looking at risks from the combined
perspective of their impact potential (moderate to critical)
and management possibility (none to very high), severe
drought and moniliase disease in cacao appear as the risks
with the most critical potential impact and minimum risk
management. Therefore, they require medium to long-term
investment and strong preparation to cope. Considering
output value as a measure of aggregated impact of risks in
Bahia as a whole, the greatest challenges are drought,
aggressive pests and diseases, and weeds resistant to
herbicides in Western Bahia, taking into account the
proportionally large economic size of that region. The
present action plan reflects the strategic lines and
includes some basic details on who, when, and how much is
required for the implementation of the actions. This report
presents the findings and conclusions of the first and
second phases of the agriculture sector risk assessment for
the state of Bahia.