Jan 20, 2010

Parana Resumes Lead As Major Grain Producing State In Brazil

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

The two largest agricultural states in Brazil are Mato Grosso and Parana and there is a friendly competition between the two states as to which is actually number one. Last year Mato Grosso produced the most grains, but data released by Conab indicate that the state of Parana will retake the lead from Mato Grosso in 2009-10. The lead tends to shift back and fourth depending on how good the growing season was in either state. The 2008-09 growing season was very dry in Parana resulting in poor yields and allowing Mato Grosso to take the lead.

The two largest agricultural states in Brazil are Mato Grosso and Parana and there is a friendly competition between the two states as to which is actually number one. Last year Mato Grosso produced the most grains, but data released by Conab indicate that the state of Parana will retake the lead from Mato Grosso in 2009-10. The lead tends to shift back and fourth depending on how good the growing season was in either state. The 2008-09 growing season was very dry in Parana resulting in poor yields and allowing Mato Grosso to take the lead.

Historically, Parana has been the leading grain producing state in Brazil because of the greater crop diversity found in Parana as compared to Mato Grosso. While Mato Grosso farmers focus most of their attention on soybeans, a second crop of corn and a little cotton and rice; the farmers in Parana grow soybeans, two crops of corn, wheat, edible beans, rice, coffee, and manioc root.

Dry weather during the 2008-09 growing season reduced Parana's soybean crop, but in 2009-10, the soybean acreage is up and the weather has been very good. The state is expecting to produce 13 million tons of soybeans, which would be 40% more than last year and puts Parana in second place behind Mato Grosso in soybean production.

Even though the corn production in Parana is expected to be down by 2% compared to last year, the state will still be number one in corn production responsible for 19.6 of the national corn production. Fifty five percent of Parana's corn crop will be full-season corn and 45% will be planted as a second crop after soybeans.

While edible bean acreage declined 11% this year in Parana, the total production is expected to increase 29% compared to last year and Parana produces 27% of Brazil's edible bean production. Since the growth cycle of edible beans is quite short, the farmers in Parana are able to produce three crops of edible beans every year.

Coffee production in Parana is expected to increase 45% to 126 million kilos, which is 4.6% of Brazil's total coffee production.

The state of Parana may be the leading grain producing state in Brazil in 2009-10, but its lead will be relinquished to Mato Grosso in the future simply because Mato Grosso is so much larger in size. The state of Mato Grosso encompasses 903,357 square kilometers, which is 4.5 larger than the 199,314 square kilometers in Parana. Additionally, the agricultural areas of Parana are by in large already full of agricultural production, whereas Mato Grosso has an enormous area of land left to be developed. Mato Grosso also has the largest cattle herd in Brazil and in the future; it will also be the largest grain producing state as well.

The major crops in Brazil that registered increased acreage in 2009-10 include: soybeans, sugarcane, edible beans, coffee, tobacco, onions, potatoes, and manioc root. The major crops that registered decreased acreage in 2009-10 include: corn, rice, cotton, and peanuts.