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Corn+Soybean Digest

Brazil's Future In Ag

The future remains bright for Brazilian agriculture.

Brazilian farmers have been fast to adopt new technology and continue to improve both crop and livestock genetics.

The area that has become dominant in the last five years in soybean production is ideally positioned to expand now in livestock production.

The Cerrado region, a 1.5 million square kilometer expanse including the states of Mato Grosso, Mato Grosso do Sul, Goia's and Minas Gerais, is ready to lead Brazil in the next round of livestock production increases — just like they have greatly increased soybean production in the last five years.

The technology and capital is in place — but until major infrastructure improvements (roads and railroads) are improved, getting the meat to export terminals will be a limiting factor.

What does it mean to U.S. farmers? Brazilian growth in soybean, pork and broiler production will increase.

The key for U.S. farmers will be to work on expanding the global markets for these key ag exports. As long as worldwide demand for goods increases, both can operate profitably.

Producers also need to work at being the most efficient producers they can be.

Over time the businesses in Brazil or the U.S. that have the greatest operational efficiency will stay in business and make the most money.

Growers also need to work on controlling input costs. With higher global fuel costs, higher interest rates and rising inflation, producers who lower costs will always bring more profit to the bottom line.

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