August 1, 2008

Brazil's SLC Agricola to plant more soy in 2008-09

Brazilian agribusiness company SLC Agricola expects to plant soy in over 50 percent of its 220,000 hectares in 2008-09, local news service Estado reported late Thursday (July 31).

"Even though the price of corn exports have improved, due to the crop being used in the production of ethanol in the US, the price still isn't as attractive as soy," Estado quoted Laurence Gomes, SLC Agricola's investor-relations director as saying.

The company this year planted 50 percent soy, 35 percent cotton and 15 percent for corn, he said.

SLC Agricola expects the costs of production in 2008-09 to rise 24 percent compared with 2007-08, Estado reported.

The company delayed the purchase of some fertilizers for the next harvest to avoid recent peaks in oil prices, the agency also reported.

SLC Agricola also said it recently purchased 3,406 hectares of land in Brazil's northern state of Maranhao.

SLC Agricola will pay 14 million Brazilian reals ($8.9 million) for the land, or the equivalent of 350,000 60-kilogram bags of soy.

SLC Agricola is one of Brazil's largest owners of farmland in the centre-western and northeast states.