Monday, December 10, 2012

Brazil still has potential to increase production of wheat

From Oct. 21 to Oct. 23, 2012, the 19th International Wheat Conference, one of the main events inside Brazilian wheat chain, was held in Florianópolis, the provincial capital of Santa Catarina in Brazil. During this event, about 500 people including producers, equipment suppliers, experts, researchers and the public authorities from many different countries attended the meeting and discussed on the theme of “It’s Time for Wheat”, according to CCM’s November issue of South America Crop Protection Monthly Report.

On the second day of the meeting (Oct. 22), according to Sergio Amaral, the President of the Brazilian Association of Wheat Industry (ABItrigo), if Brazil continues to develop the new technology and new variety of wheat, its wheat production still has potential to be increased.

In fact, the unit yield of wheat in Brazil has increased significantly from 1970 to now. According to the Food and Agriculture Organization of the United Nations (FAO), the unit yield of wheat in Brazil was about 886 kg/ha. in 1970, but in 2012, the unit yield is expected to reach 2,800 kg/ha. However, the unit yield of wheat has been little changed in recent five years, plus no obvious expansion of wheat planting area, the production of wheat failed to increase continuously in Brazil during this period. In order to meet domestic demand, Brazil needs to import wheat from other countries every year.
In 2012, due to the higher price of corn, farmers preferred to plant corn instead of wheat in Brazil. As a result, the planting area of wheat in Brazil is expected to decrease in 2012/13. According to the latest report of the US Department of Agriculture (USDA), the planting area of wheat in Paraná, the main wheat production region in Brazil, is estimated to decrease by 27% in 2012/13 compared with that in 2011/12, which will lead to the decreasing production of wheat in Brazil in 2012/13. As a result, the import volume of wheat in Brazil will also increase in 2012/13. 
The possibly increasing import volume of wheat in Brazil is unfavorable for the development of its wheat planting. So it’s much important for Brazil to develop the new technology and variety of wheat to improve the unit yield of wheat, since the improving unit yield of wheat will help boost the willingness of farmers to plant wheat in Brazil, thereby increasing the wheat production.

With the improvement of people living standard and change of lifestyle, people need more and more wheat in the world. According to USDA, the world’s consumption of wheat has increased by 8% from 643 million tonnes in 2008/09 to 695 million tonnes in 2011/12. Although USDA estimated that the consumption of wheat will decrease to 678 million tonnes in 2012/13, it’s still higher than that in previous years.
However, the total production of wheat in the world is unstable amid the increasing consumption of wheat. According to USDA’s estimation, the production of wheat in the world in 2012/13 will be less than the consumption. As a result, the supply of wheat will be in shortage in the world. In this context, if Brazil increases its production of wheat, it's believed that it can help reduce the wheat supply pressures in the world.

Source: South America Crop Protection Monthly Report 1211

Content of South America Crop Protection Monthly Report 1211
Argentina may lose 20% of projected corn crop in 2012/13
Peru coffee production to drop in 2012
Chickpea planting develops fast in Argentina
Mato Grosso court orders Monsanto to suspend royalties
Paraguay regulates responsibilities of GM cotton importers
Brazil suspends citrus exports to EU
Brazil authorizes temporary use of spinosad-based pesticides on fruit
FMC launches new ripener for sugarcane in Brazil
Syngenta launches Ampligo® in Argentina
Arysta LifeScience gets approval for Legacy® fungicide in Paraná, Brazil
Brazilian farmers must be alert to pest management on soybeans
PSA appears in kiwifruit orchards in Chile
Embrapa warns of occurrence of green belly stink bug in wheat
Brazil still has potential to increase production of wheat

South America Crop Protection Monthly Report , a monthly publication issued by CCM International on 31th of every month, offers timely update and close follow-up of South America's  Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development.

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