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Soy Invades Corn, Wheat and Bean Land in Brazil

The lack of rain in the Brazil’s main producing regions reduced the 2005 agricultural harvest by 5.2% in relation to the 2004 harvest and 8.8% in relation to the 2003 harvest, which was the greatest on record.

Last year’s Brazilian agricultural production amounted to 112.6 million tons, as against 124.2 million tons in 2003.

The items most affected by the drought were corn (-6.6 million tons) and wheat (-1.1 million tons). These data are available in the publication released today, June 30, by the Brazilian Institute of Geography and Statistics (IBGE) on municipal agricultural production in 2005.

The study reveals that, although the area under cultivation in the country rose by approximately 636 thousand hectares in 2005, in consequence of the expansion in soybean production, there were reductions in the areas used to grow corn (-4.7%), wheat (-15.9%), and beans (-8.3%).

According to the study, besides unfavorable climatic conditions, farmers faced difficulties in renegotiating debts, getting their production to market, and obtaining loans and better prices.



  • Show Comments (1)

  • Guest

    Dead wrong !!!!!
    IT IS NOT due to lack of rain.

    IT IS DUE to your high currency, high costs of fertilizers and high costs of transportation due to your lack of infrastructure transportation ! And also the high borrowing costs and high fuel costs !

    Nothing else !

    Thus farmers are planting far less because they are struggling.

    Just refer to the hundreds of articles and references on this subject.

    Thus the reason provided in the article is just another lie from your your various adminstrations or government agencies TO HIDE THE TRUTH………ON PURPOSE !!!!!!!

    Another pure lie !

    Here are some true statements :
    – governors of the agricultural States delivered to president Luiz Lula Da Silva a document in which detailed the causes of the crisis in the sector and makes a series of requests to the federal government. “The difficulties for our farming sector has been provoked mainly by the economic policy of the federal government, guided by the strengthening of the real currency to the dollar”. They also criticized the high cost of the diesel fuel. According to them, to plant, harvest and to carry the production from 1 hectare of soybeans 200 liters of diesel fuel are used. In November of 2002, this cost on average of US$ 70 or 7 bags of soy per hectare. In April of 2006, this cost was 200 dollars or 20 bags of soy per hectare. Source: SÀ³NotÀ­cias May 17, 2006

    Summing up:

    4 years ago the cost of diesel to plant a crop was about 7 bushels per acre; today it takes 18 bushels to cover the fuel costs.

    – (end of May) : On Thursday the government promised to finish the highway north (BR 163 to the port on the Amazon) – this has been promised for 8 years.

    – Tax Cuts for the Ag Sector

    The Minister of Agriculture, Roberto Rodrigues, announced the government will reduce import duties and taxes on agricultural inputs to offset the 50% gain of the Real against the US$ since May 2004.

    – Farm combine sales in Brazil lowest since 1976. The vice-president of Anfavea, Persio Luiz Pastre, attributed the poor sales to a decline in profits from the soybean. High costs, especially for fuel, freight and agrochemicals, and the strong Brazilian real against the dollar, which reduces Brazilian soy’s competitiveness abroad, have squeezed producers’ profit margins.

    – Area Planted Expected to Fall
    The President of the Brazilian Association Vegetable Oils (ABIOVE), Carlo Lovatelli, predicts a drop of 5% to 10% in area planted for the 2006/2007 crop. If correct, the planted area will decrease from 22 million hectares in 2005/2006 to between 19.8 and 20.9 million this year.

    – Soybeans Going Through Worse Period Since 70s.the soybean sector is headed to its worse ever situation since planting began back in the 70s. Area Planted Expected to Fall
    The President of the Brazilian Association Vegetable Oils (ABIOVE), Carlo Lovatelli, predicts a drop of 5% to 10% in area planted for the 2006/2007 crop. If correct, the planted area will decrease from 22 million hectares in 2005/2006 to between 19.8 and 20.9 million this year.

    While in Mato Grosso (largest producing State), the President of the Soybean Producers (Aprosoja) is predicting a reduction of as much as 30% in the area planted unless the government takes immediate action.

    – 20 June – In 2004, a harvester cost 12,500 sacks of soya. Today the same harvester cost 26,400 sacks.

    The above are simply extracts from specialized sources in brazilian agriculture.

    Simple demonstration that saying the drought is the primary reason of the problem is not only dead wrong but a pure lie, on purpose, to hide the reality….AS USUAL !!!!

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