São Paulo Government Credit Supports Small Dairy and Beef Producers
On October 14, Brazil’s National Livestock Day, São Paulo’s Secretariat of Economic Development highlighted two state initiatives aimed at small livestock businesses: credit from Banco do Povo Paulista (BPP) and support from the SP Produz programme. National agricultural and livestock revenue was estimated at R$1.39trn in July by the Agriculture Ministry’s Secretariat of Agricultural Policy. Livestock accounted for R$504.8bn, or 36.1% of the total.
BPP provides loans ranging from R$200 to R$21,000 to formal and informal microentrepreneurs. The monthly interest rate starts at 0.35%, with repayment terms described by the programme as facilitated. Between January 2023 and September 2024, the bank completed 1,601 operations for the raising of cattle, goats, poultry, pigs and buffaloes. The disbursements exceeded R$28.5m and covered businesses producing milk, meat and other animal products.
Borrowers can use the money to purchase animals, inputs and equipment or to expand their operations. Applicants must conduct a productive activity in a municipality served by BPP and have no restrictions recorded with Serasa or the state’s Cadin register. They must also complete an entrepreneurship qualification course, provided free of charge either in person or online by Qualifica SP or Sebrae. The state has more than 570 Banco do Povo units.
SP Produz was created in 2024 to encourage the self-organisation of sector groups and support regional economic development. In Mogi das Cruzes, in the Alto Tietê region, the local dairy production chain is managed by the city’s Rural Union and brings together about 70 small livestock producers. Most raise dairy cattle, while some keep goats. The group received more than R$700,000 in funding.
Fábio Kazunori Dan, president of the Rural Union, said the group’s milk currently serves the regional market. “We have a cooperative, which is still small, and it needs to strengthen in order to serve larger markets,” he said. The funding was used for professional training and consultancy in sales, marketing and financial management. Dan said the group sought to make the activity more profitable, raise productivity and create more successors in livestock farming. He added: “When small producers with common objectives come together, the whole chain benefits: trade, retail, wholesale and the production of inputs. This gives us optimism, because we have resources to make a start. It is an important stimulus.”
The Mogi das Cruzes group, classified as mature, applied again this year for support under the state funding call; the application process is under way. The Rural Union also manages the local mushroom-growing chain and has applied for recognition of a flower-production chain. São Paulo has two other dairy production chains: Tupã, in the Marília region, which is classified as established, and Andradina, in the Araçatuba region, which remains under development.
