by PressBrazilian farmers plan to increase wheat production
Brazilian farmers expand their crops
Brazil is one of the largest players in the global agricultural market. The country exports wheat, corn, and other products. Despite large production volumes, the country’s president believes that Brazilian farmers have every opportunity to grow even more wheat. Jair Bolsonaro is confident that yields can be increased to 23 million tons per year.
According to data from the Ministry of Agriculture, last year the volume of wheat production in Brazil amounted to 7.7 million tons. Imports of crops were at 6.2 million tons. This season, local farmers plan to expand planting areas to increase the grain harvest.
It is planned that the crop will be sown on 10 thousand hectares more, which will produce an additional 300 thousand tons of wheat annually. The main state of cereals cultivation in Brazil is Roraima, where there are plans to expand the area of crops. Also, more wheat will be planted in other agricultural regions of the country.
Increasing wheat production is an urgent task for many suppliers, especially if we consider the rise in wheat prices. On the U.S. exchange, the price of the crop hit a record high of $11.29 per bushel. This figure is 3.5% higher than the previous figure. The rise in wheat prices is caused by the geopolitical conflict of major suppliers.
Weather conditions in Canada also exacerbated the export situation. Low temperatures have led to a shift in the planting campaign. For example, in April local farmers were supposed to sow 18% of the total area, but only 8% was sown. Such factors negatively affected crop ripening and the quality of the crop.
In order for Brazil to increase production, local farmers need fertilizers. In just one year, the country’s agricultural sector consumes about 40 million stimulants, 85% of which are imported. But with the expansion of planted acreage, farmers will need more raw materials. Currently, stocks of fertilizers are about 13 million tons, and that should be enough for four months. The government is considering options of changing suppliers, and one of the likely sellers of fertilizers will be Iran.
In the spring, UN officials released data on the consequences of the geopolitical conflict in Europe. It is expected that as a result of problems with grain supply about 20% of the world’s population may suffer from hunger and poverty. The fact is that some of the largest exporters of agricultural products participate in this geopolitical confrontation, accounting for 30% of the global production of the entire sector. The food crisis is primarily expected in Africa and the Middle East.