Monday, July 9, 2012

Brazilian Agricultural Production Continues to Set New Records

Forecast Crop & Meat Production Growth
Brazil's agriculture sector is expected to grow strongly
In a previous post, I outlined how Brazil has become a major global agriculture powerhouse. From Research I've done, it looks like Brazilian agriculture is continuing its rapid expansion.  Additional acreage is coming on line, and Brazil's agricultural exports have grown from $16 billion in 2001 to to $80 billion in 2011, a five fold  increase.

Brazil currently has 62 million hectares of and under agricultural production, and that number could rise to anywhere from 70 million to 100 million acres by 2021.  As the graph on the right from the USDA and the Brazilian agriculture ministry shows, Brazil's forecast meat and crop production growth will likely far outstrip that of the US.

Much of Brazil's agriculture exports have been led by soybeans, sugar and meat.  China in particular is a major buyer of Brazil's soybean crop, and China's demand will only continue to grow.  Below is a graph providing an overview of which crops have been leading Brazil's export growth in the last decade.  The future appears to look quite bright indeed for Brazilian agriculture.
Brazilian Agricultural Exports By Commodity
Brazil's Agriculture Exports by Commodity


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