An increase in wheat production in Brazil should make bread cheaper for consumers

Published 2022년 10월 20일

Tridge summary

Brazil, a major agricultural power, is looking to achieve self-sufficiency in wheat production due to its high import dependence. Currently, Brazil's annual consumption is around 12-13 million tons, while its 2022 production is projected to hit a record 8 million tons. However, with the adaptation of wheat production to the Cerrado soil, Brazil plans to expand its wheat production area by 6.5 million hectares, leading to an increase in grain production by 4 million tons over the next decade. This move is anticipated to lower the cost of wheat derivatives like bread and potentially position Brazil as a wheat exporter, benefiting its agribusiness and trade balance.

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Original content

Although Brazil is considered one of the largest agricultural powers in the world, it still suffers from dependence on imports to meet domestic demand for some products, such as wheat. This is because most of the commodity, which is mainly used to make bread and cakes, is produced outside the country. Currently, Brazilians consume between 12 and 13 million tons of wheat per year, while in 2022, national production of the grain should reach a record of around 8 million tons, according to data from the Brazilian Agricultural Research Corporation (Embrapa). However, after Brazil adapted wheat production to the Cerrado soil, the country began to count on the possibility of self-sufficiency. The estimate is to expand the wheat production area to one million hectares in an irrigated system in the cerrado and incorporate another 2.5 million hectares in the rainfed system, where the planting is done, without the need for constant irrigation. This would represent an increase of about 4 ...

Source: Portal Do Agronegocio