by PressBrazil plans to increase soybean production by expanding acreage
Brazil expects record soybean volume
Brazil is a strong player in the agricultural market. Following trends, the country has decided to reconsider the allocation of acreage. It is planned to increase the volume of soybeans by expanding its area of cultivation. It is projected that in 2021/2022 marketing year the legume crop will reach 141 million tons. This figure will be a record for the country, and as the area to be planted is 40 million hectares.
According to some experts, the high soybean crop could compete with products from the U.S., which has a leading position in the global market.
The decision to expand production of the crop in Brazil was made after analyzing current trends, demand and price changes. According to FAS, the processes currently observed in the market will continue in the next season, which allows the forecast of production and export shipments. Brazil is considered one of the largest suppliers of soybeans, it provides more than 30% of the total demand for the product in the world market.
According to FAS, the country has all the conditions to grow large amounts of soybeans. First of all it concerns arable land, which allows expanding the area under the crop.
The national company CONAB assessed the situation in the segment of soybean production in the country. It turned out that for the previous 5 seasons the area under the legume increased by about 13%, to 4.55 million hectares. By 2030, soybean acreage in the Mato Grosso region is projected to grow by 40% to about 14.79 million hectares. In comparison, last season the area under the crop was about 10.3 million hectares. Now the crops have increased by 3%.
Growing soybeans is profitable for Brazilian farmers against the backdrop of a weak national currency. Under such conditions, exports will only grow, facilitated by the consumption of oil and meal, which regularly increases.
Soybeans are used for food purposes, as feed for livestock, as well as for fuel production. And the demand for the legume crop will continue to grow, especially given the development of green energy sources. Soybeans are used to make biodiesel and other fuels for vehicles. Another factor in the increased demand for the crop is the growth of meat consumption in the world. This, in turn, requires the raising of more animals that need to be fed. The main importers of soybeans are European countries and China. The latter has been the largest buyer of Brazilian soybeans for several years in a row, and there is no question of reducing supplies in the coming years.