Dec 14, 2009
Cotton Producers In Mato Grosso More Optimistic, Increase Cotton Acreage
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The state of Mato Grosso is the largest cotton producing state in Brazil accounting for approximately 50% of Brazil's total cotton acreage. Cotton acreage in the state is expected to increase to 400,000 hectares in 2009-10 compared to 387,000 hectares grown in 2008-09. Cotton producers are more optimistic this year due to increased prices internationally, and the reduced costs of key inputs such as fertilizers.
The vast majority of the cotton produced in the state is full-season cotton varieties planted in December and January and harvested between late May and early July. Conventional cotton varieties in Brazil are harvested 180 to 210 days after they are planted. These full-season varieties need to be planted no later than January 20th in order to avoid potential yield losses.
The biggest change in Mato Grosso cotton production may well be the increased amount of cotton planted during the safrinha. This is the cotton crop planted in January and February after the early maturing soybeans are harvested. The cotton varieties planted for the safrinha are short-cycle varieties that only require 150 days to mature. This allows the cotton to be planted up until the end of February. These short cycle cotton varieties may yield a little less than normal cotton varieties, but since they are in the field for a shorter period of time, they require less insecticide applications and actually may result in increased profits compared to regular cotton varieties. During the 2008-09 growing season, only 4,500 hectares of safrinha cotton were grown in Mato Grosso. During the 2009-10 growing season, the safrinha cotton acreage is expected to increase to 40-45,000 hectares.
The executive director of the Mato Grosso Cotton Institute (Instituto Mato-grossense do Algodao - IMAmt) estimates that the average cost of production for cotton in the state during the 2009-10 growing season will be US$ 1,700 to US$ 1,800 per hectare for full-season cotton varieties and US$ 1,400 for short cycle safrinha cotton varieties. If international cotton prices continue to stay strong, cotton growers in the state can anticipate a profit of between US$ 300 to US$ 400 per hectare for the 2009-10 growing season.