May 10, 2007

USDA: Brazil to harvest record soybean crop of 58.2 million tonnes

As one of the world's leading soy exporter, Brazil is seen to harvest 58.2 million tonnes or 2 million tonnes greater than last year, according to the data published by the US Department of Agriculture (USDA) in its "Brazil Oilseeds and Products Annual Soybean Report 2007."

The USDA says the increase is due to favourable weather conditions and high international prices of the commodity. Despite the sector's three-year setback due to drought, soybean rust and the strong Brazilian currency, the business of growing soybeans continue to thrive as it expected to weigh 50 percent of Brazil's total grain production this year.

With its technological conditions and area availability, Brazil has become the largest oilseed producer in the world. According to the report, there are still 90 million hectares available for oilseed crops without causing deforestation. However, it will need a new farming policy to begin structural changes in planting the crop and eventually lead Brazil as the world's number one soybean producer.

Having been dubbed as "agriculture's new frontier", Brazil is taking into account the global soybean supply where leading soybean countries Argentina and the United States have failed to fill in.

As demand for corn-based ethanol continues to surge, soybean harvests around the world are expected to decrease with farmers shifting its sight to corn. But this scenario has encouraged Brazilian soybean farmers to expand their acreage for next season's crop harvest, particularly in northern and centre-west Brazil. The USDA estimates soybean land area to rebound by 4 percent to 21.9 million hectares for 2007/2008 crop season.

To view the whole USDA report, please click here