Brazil is getting closer to becoming the world's largest corn exporter

The expectation is that the country will surpass the United States in exports, driven by increased sales and competitive prices

24.04.2023 | 13:56 (UTC -3)
Fábio Bouças
Corn production brings Brazil closer to being the world's largest exporter
Corn production brings Brazil closer to being the world's largest exporter

International Corn Day, celebrated on April 24th, has a special flavor for Brazilian producers, because Brazil is about to become the world's largest exporter of the cereal, according to data from consultancy AgRural. Brazilian corn exports reached a record 43,17 million tons in 2022, more than doubling compared to the previous year. The country is expected to export between 46 and 47 million tons of corn in 2023, consolidating its position as a world leader in this sector.

For Fábio Pìzzamiglio, director of Efficienza, a company specialized in foreign trade, the positive expectation could represent a paradigm shift in the foreign market. “The United States has always been recognized for its production and export of corn, which is present in North American culture as a whole. However, we are seeing significant growth in our country, especially when it comes to the price and quality of our products”, pointed out the executive.

Also according to information from the market consultancy, Brazil's possible leadership as the largest corn exporter in 2023 will be the result of a specific situation, related to slow exports from the United States and the uncompetitive prices of North American corn. North American producers retained the corn and chose to sell it later, which raised prices and boosted Brazilian exports in the last months of 2022 and the beginning of 2023.

“There are aspects that need to be observed, especially when we deal with the climate issue, which is of great importance for our agriculture. However, I believe in the positive results”, stated Pizzamiglio.

But even with the country taking the lead, corn production in the countries of the Americas, Brazil and the United States, presents promising prospects for the next harvests, according to reports from the United States Department of Agriculture (USDA) and the National Food Company. Supply (Conab) of Brazil. Brazil expects to achieve a production of 133 million tons of corn in the 2023/24 harvest, with an area of ​​22,8 million hectares to be harvested, representing an increase compared to the previous harvest. Conab also estimates a 9% increase in total corn production compared to the previous year, reaching 123,7 million tons. In the United States, expected production is around 348,76 million tons in 2023, with an estimated productivity of 181,28 bags per hectare. These numbers indicate a positive outlook for the corn sector in these nations, driven by the increase in planted area and investment in technology and agricultural management.

“The price of Brazilian corn will be the big difference in this dispute with the North American product. Furthermore, Brazilian efforts in relation to cereal quality and sustainability are differences that will make our corn be purchased by more markets. And there is still room for expansion of the foreign market”, analyzes Pizzamiglio.

In addition to corn, Brazil also expects to harvest record harvests of soybeans and herbaceous cotton in 2023, according to the Systematic Survey of Agricultural Production by the Brazilian Institute of Geography and Statistics (IBGE). Soy production is estimated at 147,2 million tons, an increase of 23,2% compared to the previous year. Additionally, the sorghum harvest is expected to reach the mark of 3,1 million tons, indicating an increase of 7,4% compared to the previous year, still according to IBGE data.

Data from the Brazilian Agricultural Research Corporation (Embrapa) show that Brazil is currently the second largest player in the world grains market, with a 19% share of international exports. In the last two decades, Brazilian exports exceeded 1,1 billion tons, representing 12,6% of total exports globally.

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