ANALYSIS OF NATIONAL POLICY FOR FAMILY FARMING ORGANIC PRODUCTS TRADE IN BRAZIL

The Food Acquisition Program (PAA) was created in 2003 by the Brazilian government to promote family farming and comprises actions as agricultural products distribution to people experiencing food insecurity and the formation of strategic stocks. This research aims to analyze organic food trade in PAA program context by considering the payout of organic products, the relative proportion of organic products traded and the diversity of products traded in Brazil. Thereby, analyzing the efficiency of this public policy in supporting family farmers. Our empirical results reveal that PAA program has no significant impact on the price increase of organic products on a national level. However, the additional percentage paid for organic products vary significantly among Brazilian states, with some states paying less for these products in some years while others pay more than the 30% foreseen by law. All states trade a small proportion of organic products in relation to the total products operationalized by PAA. Our results add valuable contributions to the literature by presenting evidence that smallholder organic agricultural production in Brazil is still very low and in need of stronger public actions. Besides these outcomes are also relevant for the guidance of public policies in other developing countries.