April 25, 2008

Uruguay soy planting to expand by 20 percent

Uruguay's soy planting in 2008-09 is forecast to utilize 540,000 hectares, a 20 percent increase from the 2007-2008, which was at 464,000 hectares, the USDA Foreign Agriculture Service (FAS) said.

The report stated that around 40 percent of Uruguay's current soy crop is already harvested.

Production for 2008-2009 is forecast to be 1 million tonnes, up from 895,000 tonnes during the last season.

The FAS said the higher output is driven by higher producer returns, increased interest from Argentine producers to expand Uruguay productions due to higher export taxes in Argentina, and large land availability for conversion to agriculture.

As cattle rearing had become less profitable in Uruguay than soy production, farmers are converting pastures to soy acreage.