Jul 16, 2010
Brazil Maintains Its Leadership of the "Breakfast Commodities"
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazil is one of the leading agricultural exporters in the world and when it comes to the so called "breakfast commodities" coffee, frozen orange juice, and sugar, it is the number one producer in the world. In addition, Brazil is one of the leading producers and exporters of beef, poultry, pork, soybeans, corn, tobacco, and ethanol.
In June of 2010, Brazil exported US$ 6.899 billion of agricultural products, which was down 6% compared to June of 2009. The decline was due mostly to weak commodity prices and not reduced volumes.
Brazil leads the world in sugarcane production and sugar exports. Sugarcane has been cultivated in Brazil for several centuries, but over the last three decades, the Brazilian government has made a concerted effort to ramp up sugar and ethanol production. Brazil has the ideal environment for sugarcane production including a tropical climate, ample land area, strong solar radiation, and plenty of rainfall for successful sugarcane production. In addition to the natural environment that favors sugarcane production, Brazil has invested heavily over the last three decades in research and development in the sugarcane industry. They have developed numerous sugarcane varieties suited to the climate, soils, pests, and diseases found in Brazil. Brazil will undoubtedly maintain its leadership position in sugar and ethanol production due to the vast quantities of foreign capital pouring into the sugar/ethanol sector.
Brazil continues to be the long time leader in coffee production. Conab estimates that Brazil will produce 47 million sacks (60 kilograms per sack) of coffee during the 2010 growing season. This represents an increase of 19% over the 39.5 million sacks produced in 2009. The increases were the result of good growing weather in 2009 and the biannual nature of coffee production.
Frozen orange production has also become a success story in Brazil. The sales of frozen orange sales in Brazil totaled US$ 1.1 billion in 2009. The vast majority of orange production in Brazil is concentrated in the state of Sao Paulo where the climate is very favorable for orange production. Brazil produces 60% of the frozen orange juice in the world and 80% of the exported frozen orange originates in Brazil.