Oct 14, 2010
GMO Soybeans in Brazil Could Reach 80% Market Share in 2010/11
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Each growing season, GMO soybeans continue to take a larger share of the Brazilian soybean market. Estimates are that Roundup Ready soybeans could account for as much as 80% of the 2010/11 soybean crop in Brazil.
There is still a market for conventional soybeans especially for customers in France and Germany, but cooperatives in Parana for example, are have a hard time sourcing enough conventional soybeans to fulfill their existing contracts. The cooperative Coamo, located in western Parana, is having difficulty finding enough conventional soybeans to meet its contract for two vessels per month of conventional soybean meal for its customers in France and Germany. In an effort to attract more conventional soybean production, the cooperative has increased the premium they are willing to pay for conventional soybeans. Last year, they paid a premium of R$ 1.70 per sack (approximately US$ 0.50 per bushel) for conventional soybeans and they have increased that to R$ 2.00 per sack (approximately US$ 59 per bushel) for the 2010/11 growing season.
The president of the cooperative indicated that European customers must offer greater premiums for conventional soybeans or they may no longer be available within a few years. Last growing season, the cooperative passed along 60% of the premium paid by their European customers to the producers. For the 2010/11 growing season, they are going to pass along 80% of the premium and he indicated they it is almost not worth the effort to try and segregate conventional soybeans any longer.
The president of the cooperative estimates that 90% of the 3 million tons of soybeans they expect to purchase in 2010/11 will be GMO. In the cooperative's draw area, 500,000 hectares of conventional soybeans were grown last year, which equated to 32% of the total soybean acreage. The conventional soybean acreage is expected to fall to 200,000 hectares in 2010/11 or only 12% of the soybean acreage. In some areas the amount of conventional soybeans has fallen to a little as 5% and the farmers no longer even try to segregate the conventional soybeans from the GMO soybeans.