Apr 27, 2010
Conventional Soybeans In Brazil Receive Premium Of US$ 0.42 to 0.48 Per Bushel
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Parana who were still producing conventional soybeans in 2009-10 (non-GMO) were paid a premium of R$ 1.50 to R$ 1.70 per sack for their non-GMO soybeans or US$ 0.42 to US$ 0.48 per bushel. According to Robson Mafioletti, agronomist for the Cooperative Organizations of Parana (Ocepar), the vast majority of the conventional soybeans produced in the state were shipped to European customers especially in France and Germany.
Ocepar estimates that 65% of the soybeans produced in Parana in 2009-10 were GMO and the percentage of the crop that is GMO increases with each growing season. The governor of the state and the director of the Port of Paranagua (the governor's brother) have fought against the introduction of GMO soybeans into the state maintaining the there is a market for conventional soybeans especially in the European community. Several years ago, they actually forced each truck entering the state to be tested if they contained GMO soybeans or not, and if they contained GMO soybeans, they were not allowed to proceed to the Port of Paranagua. Eventually the federal government forced the state to accept GMO soybeans at the Port of Paranagua, but the state maintained that the GMO soybeans must be kept identity preserved.
The premiums were needed to pay for the expense of keeping the conventional soybeans separated from the GMO soybeans. Ocepar reported that 65% to 70% of the soybeans grown in the state are exported, so as the percentage of GMO soybeans increases, it will cost more to keep the conventional soybeans separated and thus the premiums need to increase in order to entice farmers to grow the older varieties.