Soybean strategy increases profitability of sugarcane producers

Brazil's natural agricultural vocation places the agribusiness sector, historically, as one of the foundations not only of the economy, but also of research and innovation. Faced with a challenging scenario due to changes in politics and, consequently, in the economy, agriculture gains even more evident relevance, as it continues to maintain and generate jobs and move markets on several fronts, especially food.

 Obviously, however, there are direct impacts on the prospects for agribusiness due to the delicate moment we are living in and, in this sense, those that build strategic movements capable of generating differentiation and increasing competitiveness stand out. After all, searching for innovations, optimizing processes, developing new methodologies are increasingly necessary.

Within this context, there is a current movement on the part of farmers, who traditionally cultivate sugar cane, to include soybean planting on their properties, especially those located in regions adjacent to Ribeirão Preto and nearby areas – the northwest of São Paulo. produces around almost 20% of all sugarcane in Brazil.

Crop rotation is not exactly new; Brazilian characteristics, with a large cultivation area, abundance of water resources and a climate that allows two harvests per year with very similar volumes (a rarity in the world) favor it. In this case, however, the maneuver is more interesting because it takes advantage of the seedlings' growth intervals to cultivate soybeans, practically without interfering with sugarcane production.

On the contrary, the sugarcane plantation renewal areas are being used. The technique consists of planting soybeans around the sugarcane lines. With this, the plant gains the advantage of a new source of revenue, increasing its results and, on top of that, helping to renew the soil.

It is evident that there is a process of migration of cultivated areas in the state of São Paulo. Considering the last 11 harvests (from 2008/09 to 2018/19), the soybean area expanded by 449 thousand hectares (85%). Production increased by 2,17 million tons (167%), reaching 3,5 million tons. In the general sum of grain cultivation, the area grew by 415 thousand hectares (29%). Production grew by 53%. The sugarcane area – even though it was already in gradual decline at the end of the period analyzed – grew by 594 thousand hectares (15%). Effectively, no area was lost to any culture.

It is also worth remembering that there are gains in terms of schedule when adopting this tactic: while sugarcane seedlings can take up to a year to be 100% ready, soybeans reach maturity in less than half that time, in addition to helping to recover nutrients from soil. Another benefit is that the farmer does not need to plant the seedlings in a nursery and then transport them; you can place them directly in the correct area.

This movement, which has been gaining prominence over the last two years, is obviously a reflection of the situation in the sugarcane market in recent years, which required inventiveness to increase producers' profitability.

Thinking in a more macro way, the strategy also has extremely positive consequences: job creation, economic movement and the development of parallel markets throughout the chain.

For producers of agricultural machinery, the market is expanding. As a result, they are beginning to receive requests from sugarcane producers to purchase planters and harvesters aimed at growing soybeans and also other grains, such as corn. It is proof that they are seeing it not just as a parallel activity, but as a business that deserves investment, both in terms of money and effort.

We are already, through AGCO, working closely with sugarcane mills and suppliers to present technologies that are not common in the daily lives of sugarcane farmers. At the moment, the majority are still outsourcing this new operation, but there is an increasing demand from producers to understand this new scenario, which will certainly boost sales and stimulate the entire chain, from input suppliers to the delivery of harvesters, planters and tractors.

It is gratifying to follow these and other actions that show how Brazil is reinventing itself in such a traditional sector, but which, at the same time, invests heavily in development. Taking advantage of a need to discover opportunities will make all the difference for those who want to overcome this adverse scenario in the current economic situation. For this reason, I invite the entire agribusiness sector to think of ways to redo their work, and especially to take advantage of our creative capacity to find solutions that help not only in each person's business, but also in feeding the population with increasingly better quality. Brazilian and worldwide.