Big Brazilian Growth Ahead

Big Brazilian Growth Ahead

2012 crop values up steeply, and soybeans to play a large role.

Higher commodity prices will increase the total gross value of Brazil's ag production, in 2012, to R$357.3 billion, says the country's National Agriculture Confederation in a report.

In local currency terms, that's a nearly 9% increase over calendar 2011. And, taking livestock out of the equation, the CNA says total gross value of production comes to R$225.3 billion, up more than 12% from 2011.

Boring down further, their study indicates soybeans played a very big part in that year-on-year increase in value. The value of Brazil's soybean crop accounted for R$225.3 billion, up 21% over the prior calendar year, at R$68.3 billion.

2012 crop values up steeply, and soybeans to play a large role.

Meanwhile, Brazil's Ag Ministry says the country's soybean production will continue to climb over the next ten years. A Ministry report has whole soybean production increasing by 25% over the period, to 88.9 million tonnes.

But corn will increase as well, in the CNA projection for final 2012 values. Corn is slated to bring in R$34 billion by year's end, which would be up almost 40% from 2011. Production over two crops was up, in 2012, by 26%, with planted area up nearly 11% when lots of southern Brazilian producers tried to make up for soybean production lost to a January drought with second-crop corn.

Meanwhile, Brazil's Ag Ministry says the country's corn production will only increase into the future. They say that in the decade from 2011/12 to 2021/22, total Brazilian corn production will increase 1.7% per annum or 70.4 million tonnes. That will mean, they say, 11.4 million tonnes available for export and building stocks.

On the sugarcane side, the group put the value of 2012 sugarcane production - roughly half for sugar and half for ethanol—at R$43 billion, up 43% in terms of income on a production nearly 8% lower than in 2011.

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