February 6, 2004

Brazil Soy Crop Face Asian Rust Risk

Brazil's bumper soy crop could be severely reduced by the Asian rust disease unless weather conditions in South America dries up fast, according to the government's agriculture research agency, Embrapa.

Recent strong rainfall in most soy producing regions has increased the spread of the potentially devastating and fast-moving fungus, which flourishes in moist conditions.

High rainfall levels have led farmers to spray additional amounts of fungicide this season and now stocks are running low, according to Embrapa.

Embrapa soy crop pathologist Jose Tadashi Yorinori said around 15 million hectares of Brazil's 20 million hectares of soy have shown some traces of Asian rust in the past month.

The highest incidences of the disease have been registered in Mato Grosso and Goias states in the center-west region and Parana in the south.

Rust can be effectively contained by punctual fungicide spraying. Some producers stocked up after losing out to the disease last year, but others might have to pay dearly following the recent sharp increases in freight charges.

The disease took an estimated 3 million metric tons off Brazil's 51 million-ton crop last year. According to Yorinori, Asian rust-resistant varieties of soy could take at least five to 10 years to develop.

Brazil is the world's No. 2 soybean producer with production seen at around 58.9 million tons this year, up from 51.6 million tons, according to Brazilian Vegetable Oil Industry Association, or Abiove.