Brazilian potential to expand wheat production


Image: Pixabay


The National Commission for Cereals, Fibers and Oilseeds of the CNA discussed, on Tuesday (5), Brazil's potential for expanding wheat production in the country. Topics such as the global scenario, promotion actions for the cereal in the South and the development plan to expand tropical wheat production in the Cerrado.

Cepea/Esalq/USP researchers, Lucilio Alves and Mauro Osaki, spoke about the supply and demand for wheat, considering the impacts of the war between Russia and Ukraine, which are major producers of the cereal and also suppliers of fertilizers. According to them, from 2017 to 2022 the two represented 30% of world grain production.

Alves stated that wheat stocks have been falling for two years in a row and demand is exceeding supply. “It is a reflection of the pandemic, but now with the war there has been a spike in prices, with an increase reaching 75% in a few days,” he said.

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He also highlighted that despite importing almost half of the wheat it consumes, Brazil will not suffer from a shortage of the product.

“The country presented record production in 2021, but we need Russia and Ukraine to produce because stocks are low and the price will continue to rise for the final consumer.”

Mauro Osaki compared the economic performance of wheat in Brazil with the main world producers, taking five harvests (15/16-19/20) as a basis for international and national values. In Russia, for example, the production of one ton costs 62 dollars; in Ukraine, 96 dollars, in Brazil, the value reaches US$ 177.

According to him, the profitability of wheat in recent years has been unfavorable due to the crop's production costs, which favored the planting of corn.

Clipping: agrolink | Source: CNA

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