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Agricultural Commodity Control under Vargas in Brazil, 1930–1945

Published online by Cambridge University Press:  05 February 2009

Fiona Gordon-Ashworth
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Extract

The ground covered by recent studies on Brazil between 1930 and 1945 has fallen into two main schools of interest: one has concentrated on the political history of this period; the other on the background to Brazilian industrialization. With the exception of coffee and rice, Brazilian agriculture has remained relatively neglected as an area of research. Yet the importance of Brazilian agriculture both as a source for domestic consumption requirements and also as an export earner has constantly been presented as the explanation for the political evolution of Brazil in these years and the concomitant increased interest shown in the development of Brazilian manufacturing industries. This paper will concentrate on the Brazilian agricultural sector and will consider the nature of Vargas's agricultural autarquias — that is, the semi-autonomous administrative units Vargas established to supervise and direct the activities of selected areas of the economy and of society. It is hoped that, in so doing, it will contribute to a deeper understanding of how Getúlio Vargas governed Brazil between 1930 and 1945.

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Articles
Information
Journal of Latin American Studies , Volume 12 , Issue 1 , May 1980 , pp. 87 - 105
Copyright
Copyright © Cambridge University Press 1980

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References

1 For a general bibliography of Brazil in this period, see Skidmore, T. E., ‘The Historiography of Brazil, 1889–1964’, Hispanic American Historical Review, Vol. 55 (1975), pp. 716–48, and Vol. 56 (1976), pp. 81–109.CrossRefGoogle Scholar For general political coverage of the period, see Levine, R. M., The Vargas Regime: The Critical Years, 1934–1938 (New York, 1970),Google ScholarSkidmore, T. E., Politics in Brazil, 1930–1964 (New York, 1967)Google Scholar and Dulles, J. W. F., Vargas of Brazil. A Political Biography (Austin, 1967).Google Scholar On industrialization, see, for examples, Dean, W., The Industrialization of São Paulo, 1880–1945 (Austin, 1969);Google ScholarLeff, N. H., The Brazilian Capital Goods Industry, 1929–1964 (Cambridge, 1968);CrossRefGoogle ScholarSimonsen, R., Brazil's Industrial Evolution (São Paulo, 1939)Google Scholar and Stein, S. J., The Brazilian Cotton Manufacture: Textile Enterprise in an underdeveloped Area, 1850–1950 (Cambridge, 1957).CrossRefGoogle Scholar

2 The literature on coffee will be considered in section I. For rice, see Smith, G. W., ‘Comercialização e desenvolvimento económico: o estudo de um caso brasileiro’, Estudos Económicos, 3 (1973).Google Scholar On the development of Brazil's manufacturing industries, see Simonsen, R., Aspects of National Political Economy (São Paulo, 1935);Google ScholarStreet, J., Notas à margem das tarifas advaneiras (Rio de Janeiro, 1933).Google Scholar For the observations of contemporary industrialists on the subject; Great Britain, Department of Overseas Trade, Harvey, E. Murray and Sands, N. A. P., Economic Conditions in Brazil September, 1935 (1936), p. 6 for the views of a foreign observer. The British trade report series will be referred to hereafter as D.O.T, with the author and title of the report.Google Scholar

3 Sir Niemeyer, O., ‘Niemeyer Report to the Government of Brazil’, published in the Diário de Notíias (Pôrto Alegre), 25 07 1941.Google Scholar

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7 For the purposes of this article, which deals with commodity-producing areas, the centre-south refers to the states of Espírito Santo, Rio de Janeiro, the Federal District, São Paulo and Minas Gerais. The north-east refers to Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Sergipe and Bahia. For state participation in agricultural production see Brazil, Ministério das Relações Exteriores (hereafter M.R.E.), Brasil 1937 (Rio de Janeiro, 1937), pp. 106–64Google Scholar and ibid.Brasil, 1939–1940 (Rio de Janeiro, 1940), p. 119.Google Scholar

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10 League of Nations, Review of World Trade, 1931–32 (Geneva, 1932), p. 9 shows the percentage change in average coffee export prices (gold) from 1929 to 1931 to be 60 per cent.Google Scholar

11 Brazil, M.R.E., Brasil, 1933 (Rio de Janeiro, 1934), pp. 65–80.Google Scholar

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13 Wileman's Economic Review (New York), 8 Jan. 1934, pp. 3–4.Google Scholar

14 Brazil, M.R.E., Brasil 1943 (Rio de Janeiro, 1943), p. 261.Google Scholar Between and 1943, 77,070,577 sacks were eliminated. In 1933, 13,687,012 sacks were destroyed and in 1937, 17,194,428 sacks.

15 See Peláez, C. M., ‘Análise económico do programa brasileiro de sustentação do café, 1906–45: teoria, política e mediçéo’, Revista Brasileira de Economia, 25 (1971).Google Scholar

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18 Brazil, M.R.E., Brasil 1943, op. cit., pp. 251–62. This gave the opinion that Brazil had sacrificed her interests in favour of those of other producers before the war (p. 251).Google Scholar

19 Niemeyer, op. cit., Section 23, ‘Café’.Google Scholar

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23 Some evidence for the transfer of capital from coffee to cotton production has been found. See D.O.T., Harvey, E. Murray and Sands, N. A. P., Economic Conditions in Braril, September 1935 (1936), pp. 48–51,Google Scholar and Peláez, História da Industrialização brasileira, op. cit., pp. 129–30.Google Scholar

24 Accounts and Papers (P.P. 1914–1916, LXXI),Google ScholarBirch, ‘Report for the Year 1912–13 on the Trade of Brazil’, pp. 24–6;Google ScholarAmaral, op. cit. pp. 233–9, and 288–9Google Scholar and D.O.T., Hambloch, E., Report on the Economic and Financial Conditions in Brazil, October, 1921 (1921), p. 36. The best length for cotton fibre was established as being between 22 and 23 millimetres.Google Scholar

25 For the price fall, see League of Nations, op. cit. p. 9.Google Scholar

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27 Stein, op. cit. p. 148.Google Scholar

28 League of Nations, The Statistical Yearbook of the League of Nations 1936/7 (Geneva, 1937, II A.7), pp. 123, 209Google Scholar and ibid.1941/2 (Geneva, 1942, II A.8), p. 173.Google Scholar

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30 Stein, op. cit., p. 137.Google Scholar

31 Wileman's Economic Review, 21 May 1932, p. 3.Google Scholar

32 Brazil, M.R.E., Brasil 1940–42, op. cit., p. 231.Google Scholar See also Stein, op. cit., p. 143.Google Scholar

33 de Andrade, A., op. cit., pp. 120–1.Google Scholar

34 Amaral, op. cit. p. 40.Google Scholar

35 Brazil, Ministério da Agricultura, Indústria e Commércio, Brazil of Today (Rio de Janeiro, 1930), p. 59Google Scholar and Brazil, M.R.E., Brasil 1943, op. cit., p. 232. Between 1937 and 1938, for example, manioc production increased from 850,730 metric tons to 1,037,605.Google Scholar

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37 Boxer, C. R., The Golden Age of Brazil (Los Angeles, 1962), pp. 149–50.Google Scholar

38 For the background and results of the sugar trust, see Accounts and Papers (P.P. 1906, CXXIII), Chapman, ‘Trade of Brazil for the Year 1905’, p. 15;Google Scholaribid. (P.P. 1909, XCII), Cheetham, ‘Report for the Year 1908 on the Trade of Brazil’, p. 38;Google Scholaribid. (P.P. 1910, XCVI), Diario de Pernambuco (Recife) 4 Aug. 1905, p. 3;Google Scholaribid. 1 Mar. 1909, pp. 3–4 and Eisenberg, P. L., The Sugar Industiy in Pernambuco 1840–1910: Modernization without Change (Berkeley, 1974), p. 27.Google Scholar

39 Mattos, A., Açucar e Alcool no Brasil (São Paulo, 1942), pp. 196–8.Google Scholar

40 These appeals were reported in Didrio de Pernambuco, 12 Nov. 1930.Google Scholar World sugar prices fell from £9.00 per long ton in 1929 to a low of £4.67 in 1935 on the London market. See International Sugar Council, The World Sugar economy: Structure and Policies, II, The World Picture (1963), p. 342.Google Scholar In Brazil sugar (all types) prices fell from 41$786 mil reis in 1928/9 to a low of 22$613 in 1930/1. See Insrituto do Açucar e do Alcool, Anuério Açucareiro para 1941 (Rio de Janeiro, 1942), pp. 113–219Google Scholar and ibid.1949/50 (Rio de Janeiro, 1950), p. 149. See Appendix II for the rate of exchange.Google Scholar

41 Truda, L., A Defesa da Produção Açucareira (Rio de Janeiro, 1934), p. 226.Google Scholar

42 Correio de Manhã (Rio de Janeiro), 12 Sept. 1931.Google Scholar For a collection of sugar legislation see Velloso, L., Legisla ção Açucareira e Alcooleira (no place ref. 1943), pp. 233–8, 514–58.Google Scholar

43 Brazilian National Archive (Arquivo Nacional), Rio de Janeiro, Presidential Reports ‘Report of the Minister of Agricultural Affairs to Getúlio Vargas regarding the Committee to Study Motor Alcohol’, 3 Nov. 1931. There are no volume or roll numbers for this collection.Google Scholar

44 Velloso, op. cit., pp. 38–42.Google Scholar

45 Instituto do Açucar e do Alcool, Anuária Açucareiro para 1941, op. cit., p. 113.Google Scholar

46 Truda, op. cit., p. 226.Google Scholar

47 Velloso, op. cit., pp. 139–69 which contains the Regulations of the Institute of Sugar and Alcohol.Google Scholar

48 IAA Archive, Rio de Janeiro, Atas da comissão executiva do Instituto do Açucar e do Alcool, 1933–45 (hereafter Atas). On Usinas Nacionais see for example, Atas, 55, 22 Nov. 1939, p. 1.Google Scholar

49 For the Sugar Cane Statute, see Velloso, pp. 514–58,Google Scholar and for the records of a conference of sugar producers which preceded it, IAA, Conferencia Canavicira de 1941 (Rio de Janeiro, 1943).Google Scholar

50 Gordon-Ashworth, op. cit., Chapters 5 and 6.Google Scholar

51 For production and consumption levels, see IAA, Anuaário Açucareiro para 1945–7 (Rio de Janeiro, 1948), pp. 7, 110.Google Scholar

52 IAA, Atas, 62, 2 Aug. 1942, pp. 1–3,Google Scholaribid., 53, 11 Oct. 1942, p. 15 and ibid., 15, 22 Mar. 1944, p. 6.

53 Records of the Pernambuco Refiners' Cooperative (Coopcrativa dos Usinciros de Pernambuco), Recife, Pernambuco, ‘Report for the Year 1948/9’. See also de Goes Monteiroj, E., O Instituto do Açucar e Alcool em 1948 (Rio de Janeiro, 1949), pp. 1–25.Google Scholar

54 IAA, Anuário Açucarciro, para 1953/4 – 1955/6 (Rio de Janeiro, 1956), pp. 30–1. In 1951/2, Pernambuco produced 7,903,501 sacks of sugar (high grade) and São Paulo, 8,105,401.Google Scholar

55 Levine, op. cit., pp. 155–6 and 169–70Google Scholar demonstrates the way in which Vargas intervened in other sectors of the economy. For contemporary observation of the economic development of Brazil, see Kuznets, S., Moore, W. E. and Spengler, J. J., Economic Growth: Brazil, India and Japan (Durham, N.C.: 1955), pp. 68–9. In 1947, for example, 40 per cent of Brazil's income was derived from agriculture and only 23 per cent from industry.Google Scholar

56 An attempt to create a Federal Social Welfare Institute (Instituto de Serviços Sociais do Brasil) in 1945 ended in failure. See Wythe, G., Wight, R. A. and Midkiff, H. M., Brazil: An expanding Economy (New York, 1949), p. 241,Google Scholar and for a general account, Smith, T. L., Brazil: People and institutions (Baton Rouge, 1954).Google Scholar