December 12, 2005

Brazil's GM soybean growth area less than expected in 2005

Brazil's GM soybean growth area is less than expected this year, rising only to 40 percent from 30 percent of total soybean area in 2004, according to domestic seed producers.

GM soybean was sown on about 9 million hectares out of an officially estimated soybean area of 22 million hectares, with new crop planting almost completed. But only 3 million hectares of GM soybean were legally registered.

The country's planted soybean area fell for the first time in years.

Ivo Carraro, executive director of farm research cooperative Codetec, said domestic soybean producers were hurt financially this year from drought in southern regions, the unfavourable exchange rate and low prices.

Private analysts said some farmers consequently resorted to using more lower quality seeds and illegal GM seeds smuggled in from Argentina and Paraguay, in a bid to cut costs.

Farmers were also concerned that GM royalties were too high and there was uncertainty about the cost for a long time, the government's agricultural research agency Embrapa said.