Article: The eternal corn equation in SC

Santa Catarina has the most advanced agro-industrial park in Brazil, represented by advanced poultry and swine production chains. This fabulous structure generates economic wealth of more than 1 billion birds and 12 million pigs per year, supports more than 150 thousand direct and indirect jobs and generates billions of reais in economic movement.

One of the main inputs for the functioning of these gigantic production chains is corn. Therefore, the success or failure of corn cultivation directly affects the economy of Santa Catarina.

In 2005, 106 thousand rural producers in Santa Catarina cultivated 800 thousand hectares with corn and harvested between 3,8 and 4 million tons. In these ten years, the planted area gradually reduced and, in 2015, between 250 thousand and 300 thousand hectares of crops were cultivated for an estimated production of 2,5 million tons.

This situation represents a dangerous equation: for a consumption of 6 million tons there will be an internal production of 2,5 million and, therefore, a need to import 3,5 million tons of corn. Scarce input represents increased costs for rural producers and agribusinesses. As a result, meat food becomes more expensive for the consumer.

The combination of a series of factors contributed to us reaching this point, with such a drastic reduction in production. Producers migrated to soybeans, a producer with great liquidity in the commodities market, lower production costs and better final remuneration for farmers. While a bag of corn is worth between 35 and 40 reais, a bag of soybeans is worth 70 reais. Another factor is that 40% of the corn that SC produces is destined for silage, therefore, it does not leave the property and is used in animal nutrition for dairy cattle.

Last year, corn prices did not please producers. On the other hand, the current exchange rate situation encourages corn exports: Brazil has already shipped 33 million tons abroad (national production is expected to reach 85 million tons), further worsening the internal situation. Southern Brazil will have to import corn from Argentina and Paraguay. Conab does not have the stocks to regulate the market.

Plans, programs and actions by the Government and agribusinesses were unsuccessful in trying to encourage the planting of corn in Santa Catarina and everyone remains hostage to this grain, which represents the main source of nutrition for poultry, pigs and dairy cattle. Achieving self-sufficiency in Santa Catarina has been a challenge pursued for decades, whether through increased productivity, the use of high-tech seeds and calcitic limestone. Another additional challenge in this scenario is storage, as 30% of production does not have storage. Finally, corn is a cereal deeply linked to the reality of Santa Catarina.