Aug 26, 2010
Embrapa Will Increase Development of Conventional Soy in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian soybean producers continue to increase the amount of GMO soybeans they plant on their farms, but there is a small and growing percentage of Brazilian producers that want to continue producing conventional soybeans (non GMO). They feel there will continue to be a niche for conventional soybeans especially among their European customers. Since the U.S. and Argentina grow GMO soybeans almost exclusively, they feel that Brazil could become the primary supplier of conventional soybeans.
To satisfy that market, the Brazilian agricultural research service, Embrapa, recently announced plans to expand their research efforts in Mato Grosso to develop conventional soybean varieties for the Mato Grosso market. Embrapa has also developed their own brand of GMO soybeans and they will continue to do so. Embrapa just opened their newest research center in the city of Sinop, which is located in northern Mato Grosso. This new research center will be the hub of their expanded research efforts in the state.
Three years ago, GMO soybeans accounted for only 20% of the soybeans produced in the state, but during the 2010/11 growing season, that is expected to increase to 60%. The state (as well as the rest of Brazil) will never be 100% GMO soybeans because many growers feel there will always be a demand for conventional soybeans. Some farmers also worry about Roundup resistant weeds, which are starting to become a problem in Brazil. The use of conventional soybeans allows those farmers to better control these problem weeds. And lastly, some Brazilian farmers just don't want to pay a royalty to Monsanto and to have Monsanto dictate this important part of their business.
Conventional soybeans in Brazil are almost exclusively shipped to European customers who are adverse to any type of GMO grains. The Port of Paranagua has the capacity to segregate the two types of soybeans and European importers recently paid a premium of 50 cents per bushel for the conventional soybeans.