Shuttle: Mato Grosso will produce 143 million tons of grains in 2032

While the European Union, one of the major markets for Brazilian products, predicts a reduction in cereal production in the bloc’s countries over the next ten years, Mato Grosso, the main Brazilian producer, points to a great advance.

In the 2031/32 harvest, Mato Grosso producers will produce 143 million tons of grains, considering only soy, corn and cotton. If materialized, this volume exceeds the current volume by 65%.

In this same period, the planted area rises to 30 million hectares, 52% more than the current one. The data are from IMEA (Mato-Grossense Institute of Agricultural Economics). According to the institute, the new areas will come from the reuse of degraded pastures.

The state is also advancing in meat production, which will reach 3 million tons in 2032, up 43% compared to the current level.

Soy, the flagship of the Brazilian economy and Mato Grosso, will occupy an area of ​​16.5 million hectares in the state, with an estimated production of 58 million tons.

The corn area, which always follows in the footsteps of soybeans, rises to 11.6 million hectares, generating a production of 81 million tons in the 2031/32 period.

In Imea’s calculations, cotton will occupy 2 million hectares, accounting for a production of 3.9 million tons —the current one is 1.8 million.

In the protein sector, cattle slaughter rose to 6.24 million head of animals, 25% more. With this, meat production will reach 1.9 million tons, 36% more.

Pig farming has a slower pace of evolution than beef in the period. Slaughter goes to 3.91 million heads, up 19%, and meat production will add up to 372,000 tons, 25% more.

Poultry slaughter grows 54% over the next ten years in the state, to 267 million. The production of chicken meat increases to 712 thousand tons, with an increase of 63%.

For the current harvest, the 2022/23, Imea forecasts a 2.9% increase in soybean area and a production of 41.5 million tons. Corn production increases by 5.9%, and goes to 46.4 million, while the cotton area is stable, but production grows by 12%.

Prices will remain attractive for producers next year. Soy increases 19%; corn, 22%; and cotton, 18%. Despite the rise in prices, producer income will not be the same.

The total operating cost of soybean production rises 51%; corn, 30% and cotton, 27%, points out the Imea.

The 2022/23 harvest will be a period in which the producer will once again invest more of his own money in his business.

Own resources will represent 33% of spending on the harvest, a percentage well above the 17% in 2020/21 and the 23% in 2021/22.

Federal resources are the smallest for the state, decreasing to 2% of the volume of financing for the harvest. The financial system participates with 17%, the same rate for resales. Multinationals keep 30%.

Producers are going to invest R$ 18,300 per hectare of cotton sown; BRL 6,873 for soy and BRL 4,500 for corn. In this 2022/23 harvest, fertilizer costs are down compared to the previous one, but pesticide costs are up.

In 2023, in the evaluation of IMEA, the conflict between Russia and Ukraine will continue to have effects on agriculture. There is a possible reduction in fiber consumption due to the weaker economy, but Chinese demand should improve.

The conduct of the fiscal policy of the next government, mainly in the first months of the year, will generate uncertainties, according to the institute.

The European Union also released its estimates for the next ten years. Unlike Mato Grosso, he estimates a reduction in the planting area, lower production of some cereals and the need for imports of corn, rice and soy, products that Brazilians will be able to offer.

Human food consumption rises 3.9% in the bloc’s countries over the next ten years, but animal consumption is expected to drop 6%.

Protein production will be more efficient and more environmentally friendly, with an increase in organic products.
Per capita consumption drops by 1.5 kg, mainly reflected in beef. Consumption of pork is sustained and that of poultry grows.

Members of the European Commission are alert to several difficulties that are likely to occur in the countryside: climate, the decline of family farms and the aging of farmers.