Aug 20, 2010
Canola Offers an Alternative for Winter Grain Production in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The principal winter crop grown in southern Brazil is wheat, but wheat production is a hit or miss proposition in southern Brazil due mainly to lower yields caused by potential heavy rains at the time of harvest. These heavy rains can result in lower yields and poor grain quality. In recent years, canola has been gaining in popularity as an alternative to wheat due to its low cost of production and the high demand for canola oil. Brazil currently imports canola oil for the food processing industry, but many Brazilian scientists feel that canola production in Brazil is set to expand significantly.
Canola was first planted in Brazil during the 1970's, but it never really caught on until the early 2000's with the increased consumer demand for healthier vegetable oils and the start of biodiesel production in Brazil. Canola appears to be well adapted to the climate of southern Brazil with few production risks. Canola is relatively cheap to grow and some producers in Rio Grande do Sul are achieving yields of 40 sacks per hectare or 35 bu/ac, which is comparable to soybean yields in the state. The crop also offers a completely different rotation which helps to break disease cycles of wheat and soybeans. Conab estimates that Brazilian farmers planted 34,000 hectares of canola in 2010 and that the total production will be 45,000 tons.
Canola oil is also viewed as an alternative to soybean oil in the production of biodiesel fuel. Currently, 80% of the vegetable oil used in biodiesel is soybean oil and the government has been pushing hard for the development of alternative oils such as canola and palm oil.