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MISCELLANEOUS

Fri 21 Apr 2023 3:19 pm - Jerusalem Time

Brazil is on its way to becoming the world's largest corn exporter

The "little harvest" of corn has become Brazil's most important crop in a decade, ahead of the traditional early-year harvest. Thanks to him, Brazilian maize production this year will set a new record.


Thus, Brazil will become the largest exporter of corn in the world, ahead of the United States , thus occupying a position it had reached only once, in 2013.


Brazil's maize production is expected to reach 124.9 million tons (10.4 percent increase compared to last year), of which 76.3 percent will come during the second harvest, according to the latest report by the National Supply Company (CONAP), which was published. this week.


This comes despite a "delay in the soybean harvest" due to "heavy rains" in the state of Mato Grosso (central west), the main producer of soybeans and corn in the country, where the mild winter allows for a second harvest.


On his farm in Sinop, in the Brazilian grain reservoir of Mato Grosso state, Elson Jose Redivo completed the sowing of corn a few weeks ago, which he had begun following the soybean harvest.


In this region, the fields extend farther than the eye can see, while the farmers' schedule is linked to the soybean and corn crops, which extend over "about 100 percent" of the farmland spread over an area of 1,550 hectares. The corn harvest will take place in June.


Contacted by AFP by phone, Redivo explains that the rise in the selling price of maize, driven in particular by the opening of ethanol plants based on this grain from 2017, has encouraged producers to invest more in the "small harvest" known as "safrinia" ( Safrinha).


"The maize (obtained) from the second harvest has become more attractive, and we have more fertilizers, genetically improved seeds and agricultural machinery, which allows for faster and more accurate sowing," he says.


"We were able to increase the areas" allocated to corn cultivation and "improve our productivity, thus significantly increasing our production," he added.
Genetically improved varieties currently occupy almost all Brazilian maize fields.


For his part, Joao Pedro López of the raw materials market analysis firm StoneX asserts that with such production expectations "the country will be able to increase the exportable surplus", which will allow it to sell more abroad.


This comes as demand for Brazilian maize rises, in light of the harvest problems faced by traditional exporters, such as the United States and Argentina, which have been affected by climate change, and Ukraine, which is at war.


Likewise, demand has increased with the opening of the Chinese market to corn, after the signing of an agreement between Brasilia and Beijing in early 2022, according to Lopez.


According to the US Department of Agriculture, the South American giant can export 52 million tons of corn this year, compared to 31.9 million tons in 2022, thus overthrowing the United States, whose exports are expected to reach 49 million tons.


"Brazil is positioning itself as a competitor to the United States and has the potential to increase its production," says Enori Barbieri, vice president of the Brazilian Maize Producers Association (Abramilho). "There is still a lot of land available for this crop... and our production can still improve further," he adds.


But in order to improve its performance abroad, while meeting growing domestic demand driven by the needs of the meat sector and the ethanol industry, Brazil will have to face a number of challenges.


Lucilio Alves, a researcher from the Center for Advanced Studies in Applied Economics at the University of São Paulo, says Brazil must "successfully increase its investments in agricultural equipment" in order to "accelerate sowing and harvesting...and continue to improve its logistical infrastructure for the sale of produce."


For his part, Riccardo Arioli of the National Agricultural Confederation points out that "in Mato Grosso, we noticed a storage deficit of about 60 percent during the last harvest" of soybeans and corn.

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Brazil is on its way to becoming the world's largest corn exporter