Official predictions for 2023 foresee a record-breaking yield for Brazil’s corn crop.
Cargill, one of the oldest players in the global grain market and headquartered in the United States, is banking on this surplus harvest from Brazilian agribusiness to compensate for the production losses due to the Russian invasion of Ukraine.
An accord between the warring nations previously allowed Ukraine’s corn crop to be transported through three Black Sea ports.
However, this agreement has lost its original effectiveness, as stated by Jan Dieleman, the president of Cargill’s shipping business.
Dieleman expressed that Brazilian farmers could potentially fill the gap in supplying part of the Black Sea demand “at some point.”
He added that the Black Sea region remains a volatile area. “Ships are being targeted, and it’s not business as usual,” he mentioned during an interview with Reuters.
According to estimates from the United States Department of Agriculture, Brazilian farms will yield 132 million tons of corn this year.
This grain is typically cultivated in rotation with soybeans, the mainstay of the national agribusiness.
This practice allows for more efficient soil use, generating higher profits for farmers and encouraging the growth of Brazilian cornfields. This expansion also indirectly benefits other sectors.
Corn is widely used in the human food industry. Its applications range from being the base ingredient in the production of flour and oils to being a key component in manufacturing beer, soft drinks, and other beverages. The grain is also a significant source of ethanol.
Furthermore, corn is a crucial part of livestock nutrition, particularly for poultry and pigs in Brazil.
Consequently, this enhances Brazil’s status as one of the world’s largest pork and chicken producers.