Brazil’s soybean production has expanded rapidly over the past four decades. In 1969 Brazil produced only
1 million tons of soybeans. However by 1975, Brazil produced 11.6 million tons and surpassed China to
become the world’s second largest soy producer. By 1989 production rose to 20 million tons and in 2009
it reached 63 million tons. Every year soybeans play a larger role in Brazilian exports and is currently the
most important commodity in Brazilian agribusiness. It is one of Brazil’s main sources of foreign currency,
representing about 10% of the country’s total exports. The industry presently has over 243,000 producers
and generates approximately 1.4 million jobs, promoting the movement of wealth beyond the country’s
major cities and into the interior [7]. In the 2009 export market, Brazil was the world’s second largest
exporter of whole soybeans (behind only the US) and of soy meal and soy oil (behind only Argentina).
Various factors contributed to Brazil’s rapid advance between 1969 and 1975. The Brazilian government
offered significant subsidies and price supports to soybean farmers in order to boost export crops to generate
currency to pay for imports such as petroleum. Additionally, Japan provided technical assistance to increase
soybean production on marginal frontier land. Further incentive was given by the US soybean export
embargo in 1973, which artificially raised world soybean prices until it became profitable for even the most
inefficient producer to grow soybeans [8].
Between 2000 and 2010, Brazil’s soybean production continued to grow at an annual average of 8% [7].
During this period, increased production has been underpinned by growing demand from China, as well as
new soybean varieties that allowed for production to expand into additional areas of the Cerrado and the
Amazon. Until the 1980s Brazilian soybean production was concentrated in the traditional farming regions
in the south of the country including the states of Rio Grande do Sul, Santa Catarina, Paraná, and São Paulo.
This trend resulted from the lack of soybean varieties adapted to dryer and hotter climates and associated
soil types. Thanks to Brazil’s high investments in developing new soybean varieties, as well as different
planting techniques, production expanded into the Cerrado and Amazon basin regions from 1997. This can
be seen in Table 2, 3 and 4 which demonstrates the georaphical shift in soybean production states in Brazil.
Brazil’s soybean production has expanded rapidly over the past four decades. In 1969 Brazil produced only
1 million tons of soybeans. However by 1975, Brazil produced 11.6 million tons and surpassed China to
become the world’s second largest soy producer. By 1989 production rose to 20 million tons and in 2009
it reached 63 million tons. Every year soybeans play a larger role in Brazilian exports and is currently the
most important commodity in Brazilian agribusiness. It is one of Brazil’s main sources of foreign currency,
representing about 10% of the country’s total exports. The industry presently has over 243,000 producers
and generates approximately 1.4 million jobs, promoting the movement of wealth beyond the country’s
major cities and into the interior [7]. In the 2009 export market, Brazil was the world’s second largest
exporter of whole soybeans (behind only the US) and of soy meal and soy oil (behind only Argentina).
Various factors contributed to Brazil’s rapid advance between 1969 and 1975. The Brazilian government
offered significant subsidies and price supports to soybean farmers in order to boost export crops to generate
currency to pay for imports such as petroleum. Additionally, Japan provided technical assistance to increase
soybean production on marginal frontier land. Further incentive was given by the US soybean export
embargo in 1973, which artificially raised world soybean prices until it became profitable for even the most
inefficient producer to grow soybeans [8].
Between 2000 and 2010, Brazil’s soybean production continued to grow at an annual average of 8% [7].
During this period, increased production has been underpinned by growing demand from China, as well as
new soybean varieties that allowed for production to expand into additional areas of the Cerrado and the
Amazon. Until the 1980s Brazilian soybean production was concentrated in the traditional farming regions
in the south of the country including the states of Rio Grande do Sul, Santa Catarina, Paraná, and São Paulo.
This trend resulted from the lack of soybean varieties adapted to dryer and hotter climates and associated
soil types. Thanks to Brazil’s high investments in developing new soybean varieties, as well as different
planting techniques, production expanded into the Cerrado and Amazon basin regions from 1997. This can
be seen in Table 2, 3 and 4 which demonstrates the georaphical shift in soybean production states in Brazil.
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