Nov 18, 2009

Brazilian Corn Production Could Be 50% GMO In 2010-11

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Brazilian farmers are moving rapidly to incorporate GMO corn hybrids into their production practices. The full-season corn crop that is now being planted in Brazil is estimated to be 30% GMO corn hybrids. The safrinha corn crop, which will be planted early in 2010 primarily in Mato Grosso and Parana, could be as high as 55% GMO hybrids and the full-season corn crop that will be planted next year in Brazil could surpass 50% GMO hybrids.

The 2008-09 growing season was the first time the Brazilian government allowed GMO corn hybrids to be planting in the country. Estimates are that 19% of last year's corn crop was GMO hybrids. The percentages would have been higher if the seed supply would have been greater. The first gene inserted into Brazilian corn hybrids was the Bt gene used for biological insect control. This technology is very important in Brazil because the hot and tropical climate fosters a lot of insect pressure. It is not unusual for farmers in central Brazil to make 6-8 insecticide applications during the course of the growing season in order to control insects. With the Bt gene, the insecticide applications can be cut back to zero saving not only money, but also simplifying the farmer's production practices.

Since 2007, the National Commission on Biosecurity (Comissao Technica National de Biosseguranca - CTNBio) has approved eleven corn hybrids for planting in Brazil. Only Monsanto had enough seed available of one hybrid to sell last year. For this growing season a number of hybrids were available from not only Monsanto, but also from Syngenta and DuPont/Dow. Syngenta has also introduced the first stacked corn hybrid in Brazil that has insect resistance and herbicide tolerance.

In the U.S. approximately 85% of the corn hybrids are GMO and in Argentina, they account for approximately 60% of the corn production.

As far as soybeans are concerned, estimates are that as much as 70% of Brazil's 2009-10 soybean crop will be GMO. Herbicide resistant soybeans (Roundup Ready) have been planted legally in Brazil since 2003, but they were planted illegally in southern Brazil as long ago as the late 1990s. In Rio Grande do Sul, nearly 100% of the soybeans are Roundup Ready varieties. In Mato Grosso, it is estimated that about half of the soybeans planted are Roundup Ready. The percentage will certainly grow as new adapted Roundup Ready varieties are introduced into the state.

It is unlikely that Brazil will ever be 100% Roundup Ready because there is a niche market in Europe for non-GMO soybeans. In fact Blario Maggi and his company (Grupo Andre Maggi) has designated a region of western Mato Grosso as a Roundup Ready free zone. They felt they needed that designation in order to meet the strict requirements of some of their European customers that have zero tolerance for GMOs.