Brazilian farmers switch land from grazing to soy
25/10/2012
The worst drought in 56 years in the US has left farmers there unable to grow the crop, pushing prices up, and farmers in the south are looking to capitalise.
In Brazil, many are being advised to consolidate herds and invest in lime and fertiliser to make the land suitable for the crop.
Ranchers are reportedly pushing more steers into feedlots where they can be fattened quickly, a trend that is helping drive the biggest expansion in soybean in a decade but may also add to domestic grain demand.
The farm economics institute Imea of Mato Grosso estimates the state's soy output will nearly double by 2022 to 39 million tonnes with a 50% increase in area from converted pasture.
Cattle in Brazil are expected to eat 5.3% more soy and 5.5% more corn this year than in 2011, the national feed industry association says. Brazilian cattle, however, rely little on grain compared with animals in the US or other countries that depend on feedlots.
Similarly, in Argentina, farmers are moving land from cattle pastures to soy. Growers are expected to dedicate between 1 million hectares and 1.2 million hectares to soybeans in the 2012/13 crop year, up from 876,000 hectares last year.
Share this story:
