October 4, 2006

Brazil's 2006/07 soy crop to be 50 percent GMO

Brazil's 2006/07 soy crop will be at least 50 percent transgenic, said Amelio Dall Agnol, a researcher at Brazil's top crop science institute, Embrapa.

In the 2005/06 crop, some 9 million hectares of genetically modified soybeans were planted out of a total 22 million. This season should see an additional 2 million hectares of GM soy added, Agnol said, following last years ruling by the government that permitted GM soy to be planted. Brazil soy growers are expected to plant under 21 million hectares of soy in the 2006/07 crop.

"From what we hear in talks with farmers and cooperatives, all signs are pointing to a big increase in transgenic soy," Agnol said.

Farmers use GM soybeans to control the spread of weeds in soy fields, thus reducing herbicide costs.

Monsanto, makers of the only transgenic soy seeds permitted in Brazil, said the company couldn't comment on sales volume at this time. Monsanto's Roundup Ready soybean is used by a handful of crop science companies in Brazil to produce varieties of transgenic soybeans. Farmers have to pay a fee for using the genetically modified seeds, but fee costs still come out lower than extra investments in herbicides, Agnol said.

Brazilian farmers are currently facing one of their worst financial crises in decades and will spend less on the 2006/07 crop, according to consensus estimates.

Brazil is the world's no. 2 soy producer and exporter.