Brazil: Cassava achieves better profitability than soybeans

Published 2022년 3월 14일

Tridge summary

In Paraná, Brazil, the price of cassava reached an all-time high in 2021 due to a combination of factors including reduced area, decreased productivity, and increased exports. The high price of soybeans made cassava more profitable for farmers. Factors contributing to the price increase include a decrease in planting area, climate issues, and a labor shortage. Cassava is important for both direct consumption and industrial use, with Paraná hosting the largest industrial park in the country, accounting for 70% of Brazil's starch production. Despite the high prices, producers face uncertainty due to fluctuating starch content in the roots. International demand for cassava is also contributing to the price increase.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

At the end of 2021, the commercialization price of cassava in Paraná reached the highest level in its history. According to the series started in 2002 by the Center for Advanced Studies in Applied Economics (Cepea), in December last year the average value of the root reached R$ 694.67 a ton. In January of this year, the average nominal forward price dropped a little, closing at R$ 684.94 a ton. Even so, the amount is 57.3% higher than that recorded in the same period in 2021. In this scenario, even with soybeans being highly valued in the market, cassava would be more profitable for the producer (See the table below). This appreciation is the result of a set of factors that include a reduction in area, a drop in productivity and an increase in exports. In recent years, the area dedicated to cassava has been gradually decreasing in Paraná, due to the option of some farmers for grains, such as corn and soybeans, which are highly valued in the international market. There is still a ...

Source: Abam