March 2, 2004
Russia Grow Soybeans In Brazil
Yug Rusi, a major Russian agri-business group, is planning to lease a plot of land in Brazil to grow soybeans.
The company is looking into leasing a plot of land of 20,000 hectares to begin with, Sergei Kislov, the group's board chairman Sergei Kislov, told Interfax. The amount of investment in the project has not been disclosed.
Kislov said the decision to lease land was taken during a recent visit to Brazil as part of a government delegation. During the trip, Russia signed a deal to buy 1 million tonnes of soy beans from Brazil. However, price analysis has shown that it is better to grow soy beans in Brazil rather than buy them.
The cost of growing a tonne of soy beans in Brazil is $150 million, but it costs $210 to buy.
Brazil, in contrast to Russia, has unique conditions for growing soy beans. Brazil has increased production of soy beans from 1 million to 60 million tonnes a year in the past 20 years.