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Record Soybean Harvest Predicted in BrazilBy Kentucky Equine Research Staff · June 20, 2011
Brazil is expected to produce around 70 million metric tons of soybeans this year. This record-setting harvest may be impacted by recent heavy rains in some areas, but other regions are showing good growth. Second only to the United States in soybean production, Brazil leads South American oilseed harvests, followed by Argentina.
Soybeans and other grains used in feeds for horses grow well in some South American countries that have abundant water and energy. The sale of prime agricultural land to foreign countries has brought a much-needed influx of cash to Brazil, Argentina, and Uruguay in the last few decades. In these countries, about 25% of arable land is foreign-owned, leading to concerns among South American governments that they may lose control of what crops are grown and how the produce is distributed.
The World Bank has cited South American and Africa as regions in which vast agricultural areas may be purchased and controlled by wealthy but land-poor nations. Other countries that have plenty of land but lack water supplies for agricultural uses are also looking to buy land in South America. China, Japan, Saudi Arabia, and several European countries have expressed interest in major purchases.
Competition already exists among buyers who want soybeans and grains for animal feeds, human food, biofuel, and various other industries. Changes in land ownership and control will have an increasing impact on worldwide trade in feed and food ingredients.
