Brazil’s agricultural output expected to rise

by Craig Janis

Brazil is an agricultural powerhouse and a world leader in exports of soybeans, sugar, orange juice, and coffee. It is also one of the top producers and exporters of cotton, poultry, and beef. This trend of Brazilian dominance in agriculture seems poised to continue with an expected 8.5% increase in production for grains, legumes, and oilseeds, as well as a 1.5% increase in the amount of land currently under cultivation. Additionally, the coffee crop is expected to increase by 14.4% this year over last.

From MercoPress:

The production of grains, legumes and oil-seeds this year will be 8.5% greater than in 2009, according to the latest estimate. The previous estimate based on data from January indicated the total crop would reach 143.4 million tons.

Land under cultivation will grow by 1.5% compared with 2009, eventually reaching 47.9 million hectares, said IBGE.

The crop boost this year can be attributed mainly to the 17.4% increase in soybean production and 2.6% increase in corn.

Soybean is the chief crop production of Brazil, accounting for just under half of the total grain and oil seed output.

Soy, corn and rice, the three main crops, occupy 81.5% of all the cropland in the country.

Soybean production this year will reach 66.9 million tons, thanks to improved climatic conditions and the increase in the area under cultivation, while the corn harvest is forecasted in 52.4 million.

Brazil, the world’s top grower and exporter of coffee, will produce 2.8 million tons of beans this year which is 14.4% more by volume than last year.

These positive agricultural numbers bode well for Brazil’s overall economic output since agricultural revenues are a relatively high (compared to the Europe and the US) 6.5% of the country’s overall GDP.