Jun 28, 2010
Conventional Soybeans Finding Niche in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to the Mato Grosso Institute of Agricultural Economics (Imea) during the 2009/10 growing season 54% of the soybeans produced in Mato Grosso were genetically modified. The percentage is expected to increase to 60% for the 2010/11 growing season and may eventually hit 70%.
The president of the Mato Grosso Soybean and Corn Association, Glauber Silveira, feels that the ideal situation would be for half of the soybeans in the state to be GMO and the other half to be conventional soybeans. That would enable farmers to choose between the two types of soybeans depending on the economic situation. Some Brazilian farmers are convinced that there will continue to be a market for conventional soybeans. Currently in Brazil, the demand for conventional soybeans is outstripping the supply.
Some grain companies are paying R$ 2 per sack more for conventional soybeans or about US$ 0.60 per bushel more than for GMO soybeans. With the soybean crop in the U.S. 91% GMO and in Argentina its 98.9% GMO, the only reliable location to purchase conventional soybeans is in Brazil.
Mato Grosso is already into its 90 day soybean-free period, but there is some discussions about the correct timing and length of the period during which no live soybeans are permitted in the state. Currently, the soybean free period is between June 15 and September 15. Many farmers would like the period to end earlier, sometime in August. That would allow them to plant their soybeans earlier if the soil moisture is adequate. Earlier planting means earlier harvesting and then more time to plant a second crop of corn or cotton. Others would like to see the period extended until the end of September.
Since this program is only five years old, there is still an ongoing debate as to how the program should be set up.