Brazil: Paraná state experiencing worst crisis; soybean yields lowest in 30 years

RIO DE JANEIRO, BRAZIL – Paraná had not experienced such an acute crisis in agriculture for a long time. Following last year’s second-corn crop failure, Paraná is expected to record its worst soybean yield in 30 years.

This harvest, affected by extreme heat and lack of rain, will yield only 2,062 kg per hectare, according to data from DERAL (Department of Rural Economy).

These figures are still provisional and refer to the first harvest, but indicate the lowest volume since the 1,900 kg in 1992, a period when the state lacked the current production technology.

DERAL’s data consider the average productivity of the first and second harvests. However, the latter is of lesser significance. In the 2019/20 harvest, productivity reached 3,794 kg.

The drop in productivity is expected to cut the state’s total yield to 11.6 million tons in the first crop, the lowest volume since 2012, when a severe drought brought production down to 10.9 million tons.

This year’s volume is a far cry from 2019/20, when the state reached 20.8 million tons of soybeans.

CORN

Corn production retreats to 2.76 million tons, 11% less than the previous harvest. This drop complicates the supply of grain in the state, one of the main producers of protein.

After reaching 8,372 kg in the previous harvest, corn yields are down to 6,367 kg this year. The estimates for the second corn harvest are 15.5 million tons, 171% higher than last year’s, which was affected by drought and frost.

CHICKEN MEAT

The European Union is again importing more chicken meat from Brazil. Last year, 251,100 tons were imported, 10.3% more than in the previous period, according to data from the EU Economics Department.

Thailand, which once held Brazil’s leadership position in exports to EU countries, exported only 130,200 tons last year.

MILK

Falling since September last year, the price of milk paid to producers has risen again. In January, with payment in February, the product reached an average of R$2.1397 (US$0.42) per liter in Brazil, up 1.4%, according to CEPEA (Center for Advanced Studies in Applied Economics).

The decline occurred as a result of a lower consumption of dairy products. The drop in the field and high production costs reduced the offer, thus leading to a new rise in prices.

ETHANOL

The production of ethanol from corn totaled 157 million liters in the first half of this month, 39% more than in the same period last year, according to UNICA (Sugarcane Industry Association).

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