MercoPress. South Atlantic News Agency

Brazil planning 390 million tons of grain and oilseed during the next decade

The study projects that Brazil will increase its soybean production by 20.6%, to 186.7 million tons, in the next ten years

While Argentina struggles to recover from decades of merciless populism, Brazil plans to produce 390 million tons of grain in the next decade, according to a study released on July 20 by the Ministry of Agriculture.

The study, titled “Projections of Agribusiness, Brazil 2022/23 to 2032/33”, says the growth will be mainly driven by soybean, second-crop corn, and cotton and will rely on higher productivity. The current grain production is 313.8 million tons.

The study also estimates that the area planted with grains will expand by 19.1%, from 77.5 million hectares to 92.33 million hectares, in the same period. The grains include peanuts, rice, oats, canola, rye, barley, beans, sesame, sunflower, castor bean, sorghum, wheat, and triticale, as well as soybeans, corn, and cotton.

The ministry says the additional 14.7 million hectares of grain crops could come from converting degraded areas, mostly from extensive pastures, without affecting the country’s vegetation cover. Soybeans are expected to account for 78% of the increase in planted area.

The study projects that Brazil will increase its soybean production by 20.6%, to 186.7 million tons, in the next ten years. The country will also export 121.4 million tons of soybeans, representing 60.6% of global shipments.

Corn production is expected to grow by 27% to 160 million tons in the same period. The study attributes this growth to higher demand from foreign markets and increased use of corn for ethanol production. “Corn and soybeans should face pressure due to their growing use as relevant crops for bio-fuel production – biodiesel and corn ethanol,” the study says. Brazil will export 69 million tons of corn in 2032/33, leading the world market along with the United States, with a share of 30% of global shipments.

Cotton production is expected to increase by 26.8%, to 3.6 million tons, in the next decade. Brazil will account for 12.5% of world cotton production in 2030 and be one of the largest global exporters of the commodity, along with the United States and India.

On the other hand, rice and bean production is expected to decline in the next ten years. Rice production will drop by 2%, from 9.948 million tons to 9.749 million tons. Bean production will drop by 5%, from 3.079 million tons to 2.926 million tons. The study says consumption of both products will remain stable or slightly decrease in the next decade.