September 13, 2007

Argentina to remain top soy producer next year

Argentina would remain the top soy producer in South America next year, as soy farmers in second-place Brazil are expected to shift production to more profitable crops, according to a report from Brazilian agricultural consultancy Safras & Mercado.

Currently, Argentina's annual soy output stands at 46 million tonnes, followed by Brazil with 42 million tonnes.

South America's soy planted areas are seen to increase by 4.0 percent  on-year to 41.65 million hectares in the 2007/08 crop year, the report said.

The growth will be chiefly due to the expansion of the soy planted areas in Argentina, Paraguay and Bolivia, up by 5.0 percent , 8.0 percent  and 5.0 percent , respectively.

Brazil would also see an expansion of soy planted areas, but at a lower growth rate of 2.0 percent .

Argentina's annual soy demand is estimated at some 47.5 million tonnes and thus the country would need to import at least 2.0 million tonnes of the product.