November 4, 2024

Brazil projects 27% increase in grain production over next decade

Brazil's grain production is set to grow by 27% over the next decade, driven by productivity gains and the conversion of degraded lands, Valor International reported.

This projection, compared to the 2023/24 harvest, suggests the country will produce approximately 378.95 million tonnes of grain, as outlined in a study by the Ministry of Agriculture in collaboration with Embrapa, Brazil's state agricultural research agency.

During this period, the total planted area is expected to increase by 15.5%, reaching 92.2 million hectares. The crops expected to see the largest expansion in planted area include soybeans (25.1%), winter corn (24.9%), and wheat (18.4%).

According to Silvio Farnese, Director of Economic Analysis and Public Policies at the Ministry of Agriculture, "a significant portion of the planted area growth will be supported by the Program for the Recovery of Degraded Lands, offering favourable credit lines for the productive regeneration of low-yielding areas." This programme is expected to play a key role in Brazil's agricultural expansion by providing incentives for the sustainable recovery of underperforming lands.

Soybeans are projected to remain the dominant grain in Brazil's production landscape. The study estimates that soybean output could reach 199.4 million tonnes, an increase of 52 million tonnes from current levels. Corn production, likewise, is expected to rise, with total output reaching 153.1 million tonnes—a growth of 32.3%, predominantly from winter crops.

In addition to grains, Brazil's meat production is also set for expansion over the coming decade. According to the National Supply Company (CONAB), chicken meat production is expected to reach 19.5 million tonnes, a 26.4% increase. Pork production is anticipated to grow by 27.5%, reaching 6.84 million tonnes, while beef production is projected to rise by 10.2%, reaching 11.26 million tonnes.

-      Valor International