Strong exports of soybeans, corn, rice and beans make prices explode and bring back the threat of inflation

Published 2020년 9월 5일

Tridge summary

Brazil, a major food producer, finds itself in a position where it will have to import essential grains such as soy, corn, and rice due to high export rates, leading to domestic shortages and higher prices for local agro-industries. This situation is particularly severe with soy, as demand exceeds domestic supply despite being the world's largest producer. The situation is worsened by the export of corn and rice, as well as the high demand for corn in the meat industry. The lack of regulatory stocks, a policy previously used to stabilize markets, has been identified as a contributing factor. As a result, local agro-industries are facing significant cost increases, and there are calls for the suspension of import taxes on rice to reduce these costs.

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

Original content

It is a contradictory situation. Brazil is one of the largest food producers on the planet, but due to the strong export of grains, it will have to import this same raw material (soy, corn and rice) - paying higher prices - to maintain essential agribusiness sectors, such as its gigantic agro-industrial park. “It seems counter-intuitive”, shows the vice-president of the Federation of Agriculture and Livestock of the State of Santa Catarina (FAESC) Enori Barbieri. "We are exporting grains and importing those same grains at higher prices to produce meat and other foods". The central point of this situation is that agricultural intelligence is lacking, since Brazil exports commodities, benefits competitors in the world market for animal protein and still has to buy from other countries what it produces in abundance. The most emblematic case is soy. Brazil is the world's largest producer, but due to lack of planning and poor management, it will have to import this grain to feed the ...

Source: NoticiasAgricolas