World Grain - December 2024 - 18

COUNTRY FOCUS
Brazil corn situation
(in 1,000 tonnes)
Brazil wheat situation
(in 1,000 tonnes)
30,000
60,000
90,000
120,000
150,000
2,000
4,000
6,000
8,000
10,000
12,000
* Exports * Production *Projected
* Production * Imports * Consumption *Projected
of global production and 55% of exports. It is the second-largest
producer of ethanol, and third-largest biodiesel producer. While
sugar cane is the dominant ethanol feedstock, it is continuing to
see a surge in corn-based production.
However, a portion of the nation's success is its reliance on
extensive farming methods that are believed to be a threat to biomes
and biodiversity. Brazil cannot rely on commodity booms
and greater land inputs for success but should shift toward a lowcarbon
productivity-led growth model, said the World Bank.
" Brazil's natural endowments position it well to exploit new
growth opportunities as the world shifts to low-carbon economic
sectors and markets, " the World Bank said. " The agriculture sector
has scope to curb deforestation and scale-up climate-smart
land use while raising its productivity further. "
The World Bank noted that Brazil can decarbonize transport,
industry and cities at a very low net cost of about 0.5% of GDP
per year between now and 2050, which would position it " extremely
well to integrate its business into the green economy of
the future. "
Tropical wheat, milling
The tropicalization of wheat in the Cerrado region started in the
1920s, but the government continues to invest in the program,
with 2.9 million reais ($502,000) in research and technology
transfer detailed in the 2022 Term of Decentralized Execution
(TED) for Tropical Wheat. The Brazilian Agricultural Research
Corp. (EMBRAPA) estimates it's possible to increase the Cerrado
region's planted area from 252,000 hectares in 2021 to
353,000 hectares in 2025.
The " tropical wheat " needs only 10 days of continuous rain
during the flowering period, making it a preferred planting option
for producers, the FAS said. It is planted in succession to
soybeans and in rotation with corn and sorghum.
" This provides numerous agronomic benefits, such as break18
ing
the cycle of pests and diseases in the area, mainly soil fungi,
weeds and nematodes, aside from also providing a rotation of
active ingredients of agricultural pesticides, " the FAS said.
But challenges remain, including:
* severe instances of wheat blast, which can lead to a significant
loss of production;
* logistical hurdles such as the need for new equipment
and machinery;
* production costs related to imported fertilizers;
* and the lack of large mills in the Cerrado region to process
wheat.
Brazil has 147 milling facilities, with three new plants coming
into operation in 2023, according to Abitrigo. Flour extraction
was 76% with 36.1% destined for breadmaking and pre-mixes,
13.2% for the pasta industry and 10.1% for the cookie industry.
Mills traditionally are located in the northern and northeast regions
of Brazil due to the location of ports and in the southern and
southeast regions, where most of the wheat production is located,
the FAS said.
Parana state has the most with 44 mills and 30% of the national
volume. Rio Grande do Sul has 30 plants representing 17% of
national production while Sao Paulo has 15 mills with 12% of
production.
Crop production, trade
With the expected end of the El Niño weather pattern, Brazil's
corn production is estimated to rebound in 2024-25 to 127 million
tonnes, a 4% increase from last year. Exports are estimated at
46 million tonnes with higher domestic consumption, especially
by the ethanol industry.
Brazil became the world's top corn exporter in 2023, passing
the United States, after gaining access to the Chinese market at
the end of 2022, the FAS said. Exports to China in 2023 reached
16.1 million tonnes.
December 2024 / World Grain / World-Grain.com
2024-25*
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2024-25*
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
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World Grain - December 2024

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