World Grain - July 2021 - 23

Brazil wheat production, imports
(in 1,000 tonnes)
Brazil soybean production, exports
(in 1,000 tonnes)
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
30,000
60,000
90,000
120,000
150,000
Production
Imports *Estimated **Forecast
Production
" Plentiful, and generally cheap, corn supplies in Brazil's
Center-West region have enticed investment in the corn ethanol
sector over the last few years, " the report said. " The Brazilian
Corn Ethanol Union (UNEM) estimates that the sector
will produce about 2.5 billion liters of corn-based ethanol in
market year 2020-21. "
There are 16 corn ethanol plants in the country, four of
which are corn only, with the rest equipped to use corn or
cane. According to the attaché, industry sources report at least
seven other corn-based ethanol plants in the planning, development,
or construction stage, which could come online in the
next two years.
" If all the ongoing projects are built as planned, Brazil's
corn ethanol production could top 5.5 billion liters per year,
consuming more than 13 million tonnes of corn annually, " the
report said.
In the annual report on the grains sector, the attaché - predicting
a record 7.05-million-tonne wheat crop in 2021-22 -
said that " historically high domestic wheat prices are pushing
farmers to dramatically expand wheat cultivation. "
" Brazilian wheat production is concentrated in the south of
the country, especially in the states of Parana and Rio Grande
do Sul, " the report said. " Together, those two states account
for roughly 85% of total Brazilian production. Even with a
bumper crop in 2021-22, Brazil will remain one of the world's
largest importers of wheat. The crop is one of the few commodities
for which the country is not self-sufficient. "
Millers want more domestic wheat
The report notes that the Brazilian Wheat Millers' Association
(Abitrigo) is continuing to push the Brazilian government
to adopt the group's " National Wheat Policy, " which, among
other things, aims to dramatically increase wheat cultivation
in Brazil.
" According to Abitrigo, failing to achieve self-sufficiency
World-Grain.com / World Grain / July 2021
Exports *Estimated **Forecast
in wheat production leaves Brazil vulnerable to the whims
of exporting countries that could place limitations on foreign
sales of wheat, as has been the case with Russia this year, "
the report said. " There are also persistent rumors that Brazil's
largest wheat supplier, Argentina, could do something similar,
which could jeopardize sales channels for Brazilian millers. "
Abitrigo puts the number of flour mills in operation in Brazil
in February 2019 at 165. It estimates the total amount of
wheat milled in 2020 at 12.7 million tonnes.
" Per-capita consumption of wheat in Brazil has slumped in
recent years but has been offset by population growth, leaving
the overall wheat consumption level relatively static, " the
attaché said.
Brazil is a key global oilseed producer, accounting for almost
a quarter of total global supply, the attaché said in a separate
report on the oilseeds sector, published on April 1.
" Globally, Brazil is the leading producer and exporter of
soybeans, accounting for more than one-third of the world's
soybean production, " the attaché said.
Strong demand, high prices, and a favorable exchange rate
have contributed to a continuing expansion in area and production,
with the attaché forecasting an area of 40 million hectares
in 2021-22, up from 38.5 million the year before.
Brazil has adopted biotech crops on a large scale, becoming
the world's second largest producer with 104 events approved,
according to a December 2020 attaché report.
" The total area planted to GE crops reached over 53 million
hectares during the recently completed crop year of 2019-20, "
the attaché said.
Chris Lyddon is World Grain's European correspondent.
He may be contacted at: cajlyddon@gmail.com
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to worldgrain@sosland.com. For reprints of WG articles,
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23
2021-22**
2020-21*
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2021-22**
2020-21*
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
Source: USDA Foreign Agricultural Service
http://www.World-Grain.com
World Grain - July 2021

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