Brazilian grain production and planting is projected to grow, according to CONAB’s 8th survey for the 2020/21 harvest, published this May
Exceeding by 4.1% the previous harvest, the total area for planting was 68.6 million hectares in 2020/2021 which raised the production volume in 5.7%, or 14.7 million tons, with respect to the 2019/2020 crop.
The current harvest is estimated to be 271.7 million tons, driven by the outstanding performance of soy and corn, which expect to produce 135.4 and 106.4 million tons, respectively. Such approach leads to a record soybean production for this year, surpassing by 8.5% the previous result.
Despite a slight reduction of about 0.4%, Mato Grosso state remains the leader in quantity of soybean production. The South and Southeast regions have projected increase productions in the current crop (21.1% and 11.7% respectively). Planted area also have larger numbers in the 2020/21 harvest of about 4.1% compared to the previous period, which, in addition to a production record, presents an increase in productivity of 4.3% as well for the same interval, supported by the excellent outcome of the South.
As pointed out by a report in the newspaper Valor Econômico, albeit the slight reduction in production in Mato Grosso, the state will have a greater revenue stream compared to the previous period due to the rise in the prices of approximately 48%. Yet, the state program Mais MT, already underway, should inject investments into the state’s economy of R$ 4.5 billion in 2022, lifting such funding in 45%. Therefore, a continuous evolution of the sector in the region is awaited, strengthening economic development even during the current health crisis.
