Oct 27, 2010
Brazilian Farmers Seek Niche for Conventional Grain Production
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
While the use of GMO soybean and corn varieties in Brazil continues to increase, some farmers in Brazil feel there will continue to be a market for conventional crops (non-GMO) especially in the European Union. Brazil's main competitors for international markets are the United States and Argentina and both of those countries have gone almost completely to GMO crop production, which opens an opportunity for Brazilian producers who still grow conventional corn and soybeans.
A new commodity group has been formed in Brazil to explore the opportunities of conventional grain crops. The objective of the Brazilian Association of Non Genetically Modified Grain Producers (Abrange) is to identify regions of the country where the grain can be produced, to develop guidelines for their production, and to help develop markets for the crops. Their ultimate goal of the organization is to establish Brazil as the world's leader in the production of conventional grains.
European customers are already willing to pay a premium for conventional soybeans and soybean meal. Currently, in western Parana, Mato Grosso, and Goias, there is a premium of about R$ 2.20 being paid for conventional soybeans (US$ 0.65 per bushel). In April, when the 2009/10 soybean crop was being harvested, the premiums in Mato Grosso were in the range of R$ 1.50 to R$ 1.70 per sack or US$ 0.44 to US$ 0.50 per bushel. The premiums were lower last year because the price of soybeans was lower as well.
Abrange is working with local food companies interested in producing foods that are made with conventional grains. Together, they hope to develop markets for health conscious consumers that for whatever reason, do not want to consume food produced using genetically modified grains or oils.