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03.31.08

» BNDES approves R$ 20 million for innovation in the farming sector 

· Brazil will have the first chip with domestic technology for bovine tracking 
. Investment will substitute imports and will increase competitiveness in the cattle raising sector 

The board of Banco Nacional de Desenvolvimento Econômico e Social [BNDES] approved two financings in the ambit of the Technological Fund [Funtec], directed to innovation in the farming sector.

The first financing, of R$ 18.1 million, is directed to the Excellence Center in Advanced Electronic Technology [Ceitec], in Porto Alegre (RS) [State of Rio Grande do Sul]. The funds will be applied to the development of a bovine tracking radio-frequency identification system.

The other BNDES financing in the ambit of Funtec, of R$ 1.7 million, was directed to Blumenau Regional University Foundation [FURB], with the purpose of producing free software for the management of small agribusiness activities.

The Rio Grande do Sul project provides for the development and manufacture of electronic identification chip for bovine tracking and investments in complementation of the first line of the Brazilian production for manufacturing semiconductors (chips) with such purpose. The operation supported by BNDES will strengthen two segments strategic for the country: semiconductors and agribusiness.

Tracking is a process to monitor all the events and moves in the animal’s life, from birth to slaughtering. The “mad cow disease” crisis and the aphtous fever outbreaks affected seriously the trading and reaffirmed the necessity of Brazilian enterprises to improve their tracking methods for live animals. As a result, the country may supply a meat with guarantee of quality and food safety to consumers.

The financing to Ceitec will correspond to 89.3% of the project’s total cost, of R$ 20.3 million. The support from BNDES will allow the country to obtain experience and control over the technology of chip manufacture for tracking, since this is a dissemination of the first integrated circuit in Brazil. This project represents a significant step towards the country advance in semiconductor industry, allowing its final product to compete internationally.

For the first time, Brazil will produce chips with 0.6 mícron technologies (1 mícron is equivalent to 1 thousandth of millimeter). This technology allows the manufacture of chips with complexities similar to a Pentium I, granting a wide range of applications to the electro-electronic sector.

Up to now, the electro-electronic components used in the tracking electronic identification system are imported, with a high cost to the Brazilian producer. In addition to allowing a substitution of imports, the Ceitec project, supported by BNDES, will integrate the knowledge generated at universities and excellence centers to enterprises, forming a highly qualified manpower in Brazil and stimulating research in micro-electronic and in radio-frequency technologies.

The same must occur in the segment of software directed to bovine tracking, thanks to execution of the FURB project. The investments provide for a creation of communication interfaces applicable to free software and to an administrator of herds that has been developed in partnership with the Megaflex group, of Florianópolis, (SC) [State of Santa Catarina]. The project aims at allowing the commercialization of a solution for bovine handling and tracking.

The investments will promote competitiveness in the Brazilian farming sector, with adjustment to the rules in exports and adaptation to the international standards for trading in the farming sector. Additionally, it has a potential for disseminating innovation by means of other domestic enterprises.

Another merit of the project is in the possible adaptation of the chip to other uses, like, for instance, in car windshields. The global demand of mobile radio-frequency presents a growth expectation from US$ 26.9 billion in 2007 to US$ 701 billion in 2010.

Although complementary, the Funtec, Ceitec and Furb projects may coexist independently, since the Furb solution may use the radio-frequency chip imported in the absence of a domestic similar. However, aiming at the opportunity of increasing the nationalization percentage of bovine tracking and reducing its foreign exchange risk, Megaflex entered into a partnership with Ceitec for future supply of such components.

The initiative of the enterprises is complementary, but they have not entered into a term of exclusiveness in trading the chip and earrings for animals, which is healthy for market competition.

Under the agreement, the chip will come out of the plant with a sequential numbering and single recording memory. Subsequently, the animal’s Sisbov number (Brazilian System for Identification and Certification of Bovine Origin) will be stored, and would be stamped to a earring. The animals registered with Sisbov have an identification number containing the origin property, month of birth, gender, raising system, feeding and sanitary data. Joining to Sisbov is voluntary to rural producers, but will be mandatory in case of trading of bovine meat to markets requiring tracking, as, for instance, the European.

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