November 27, 2003

 

 

Expansion of Soybean Cultivation in Brazil's Center-West Savanna Favourable to Wheat Planting

 

The expansion of soybean cultivation in Brazil's vast center-west savanna should favor an increase in the region's wheat planting as a rotation crop, government and private specialists said.

 

Center-west's soy area has grown an estimated 35% since the 2001/02 (October-June) crop, from 6.97 million hectares to 9.36 million ha in 2003/04. Most of Brazil's future soybean expansion will occur in this region.

 

This growth in soy planting has already contributed to a 30% growth in the region's winter corn (March-August) area over the same period and should generate similar growth in the area planted to wheat in the coming crops.

 

"Soy's arrival in the center-west opens the necessity to rotate crops," said Silvio Farnese, general coordinator of food supply at the Agriculture Ministry.

 

"Producers already rotate with corn, but it would be interesting to divide up the area between corn and wheat, which would be a new alternative."

 

A ministry study organized by Farnese estimated that approximately 1 million hectares in the center-west could be used for wheat cultivation during the Brazilian winter crop cycle, March-August.

 

Currently, 120,000 hectares of wheat are planted in the region. According to the study, the region has the potential to put out 2.22 million tons of wheat. The region put out about 300,000 tons from the crop just harvested.

 

Brazil has been the world's largest wheat importer, bringing in about 7 million tons per year.

 

TROPICAL WHEAT

 

The absence of wheat in the center-west, which lies well within the tropics, was long justified by the traditional belief that wheat is suited for more temperate climates.

 

Benami Bacaltchuk, head of the wheat department of the Agriculture Ministry's crop research department (Embrapa), said he has spent years adapting the grain to all of Brazil.

 

"All regions over 800 meters above sea level can plant wheat in the winter," said Bacaltchuk. "It's an area that stretches from Rio Verde in Goias to Alto Araguaia (in northern Mato Grosso), more or less 2 million hectares."

 

He said even some areas in the west of Bahia, another new agricultural frontier in the country, could plant wheat.

 

"The cultivation of wheat in the center-west has not evolved even more because of the market, which is changing," he said. "Fifteen years ago, planting soy in Mato Grosso state seemed like a utopia. Today it is the largest national soy producer. A short time ago, there weren't even 10,000 hectares of wheat in the center-west."

 

J.Basso, a firm that produces soy, corn and wheat on 13,400 hectares in Ponta Pora in Mato Grosso do Sul, recently returned to planting more wheat and plans to expand its area for wheat by 50% next season.

 

"In recent years (our wheat planting) has reduced significantly. This year we decided to plant more and the result was interesting," said Airton Francisco de Jesus, agronomist at J.Basso.

 

"The minimum prices guaranteed by the government improved substantially and there has been greater demand from flour mills in the region," he said. "Aside from this, we harvest sooner than the south (where most of Brazil's wheat is grown) and get better prices."