September 8, 2008

Soy production boost in Brazil

Japan's Mitsui is expanding soy production in Brazil as global grain demand grows.

An acquisition of 13,000 hectares in the northeastern Brazilian state of Bahia by local Mitsui subsidiary Multigrain SA increased their total cultivated landholdings by more than 10 percent  to 113,000 hectares, an area 1.8 times the size of Tokyo..

Investment in the expansion will cost several billion yen, including irrigation facilities and other equipment. Mechanization and labour-saving measures on existing farms will further boost production capacity and enhance cost competitiveness. Overall, the aim is to increase soy output 30 percent  to 130,000 tonnes in 2009.

Mitsui expects high grain prices to help it recover its investment despite the risks crop farming presents.