Agri Commodities

Brazil Set To Have Another Record Breaking Grain Harvest In 2022-23

Located in South America, Brazil is the 10th largest wheat importer in the world. The country imports huge volumes of wheat every year to meet the domestic wheat needs of its 21.43 crore people. Approximately 90% of the country’s wheat imports comes in tax-free form from its Mercosur neighbors namely, Argentina, Uruguay and Paraguay.

And, unusual dry weather conditions in Argentina for the past three years have led to difficulties in procurement of wheat for Brazil. Owing to “La-Nina,” Argentina’s wheat harvest has been low in recent years and as a result wheat exports from Argentina have plunged, which has added to the woes for the people of Brazil.

However, the problem might not last long as according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA), Brazil is set to witness record breaking grain harvest in 2022-2023. The USDA report also estimated Brazil’s wheat production at 9.6 million tonnes and corn production at 125.5 milllion tonnes in 2022-2023. If this happens, Brazil would soon turn from a net wheat importer to a global wheat exporter and this would ease things up for the South American nation as well as for its 21.43 crore population.

Brazil’s Wheat Production At 9.6 mln tonnes, Corn At 125.5 mln tonnes: USDA Report

As per the report published by the Foreign Agricultural Service of the US Department of Agriculture (USDA), Brazil is on track to harvest approximately 9.6 million tonnes of wheat and 125.5 million tonnes of corn in 2022-2023.

USDA attributed this rise in production to improvement and upgradation of existing agricultural production systems such as crop rotation, better land usage that usually remained idle in the months of winter and investment in latest technologies including new resistant cultivars that are adaptable to different climates and diseases.

If Brazil’s domestic wheat production continues to follow the growing trend of 10% per annum, then by 2030 the country may domestically produce around 20 million tonnes of wheat.

Talking of corn, riding on the back of strong domestic and international demand, Brazil’s corn plantation has increased by 3.7% in comparison to the last season which have led to estimations of increased corn production this time around.

Brazil May Soon Shift From Being A Major Wheat Importer To A Global Wheat Exporter 

Like this year where experts are anticipating an increased wheat output, if the domestic wheat harvest continues to grow by 10% YoY, then the South American nation might breach the 20 million tonnes mark by 2030.

According to USDA report, Brazil’s wheat consumption is estimated to be at 12 million to 14 million tonnes in 2030, thereby the country would have ample scope for wheat exports.

The Bottom Line

Owing to increased area under plantation and favorable climatic conditions, experts believe Brazil to have a record wheat and corn harvest in 2022-23 and if the domestic production continues to grow like this, then it might not be very long for the South American nation to turn into a wheat exporting nation.

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