Brazil: Ag-Chems Up Over 25%

Avatar for Matt Hopkins By Scott C. Lucas|18 October 2007

Tulio Oliveira, executive director of Brazil’s generic acgrochemical industry association, AENDA, called the results "beyond the more optimistic expectations," and noted that many sources expected an increase of around 10%, but several factors, including sugarcane expansion, larger out-of-season corn planting, the depreciation of the US dollar, rising cotton and soybean area, and an increase in the price of the herbicide glyphosate all contributed to the massive increase.

Brazil’s crop area is forecast to rise by 1.2% to 3.4% to 46.7 to 47.7 million hectares (Ha) next season. The forecasts from the Brazilian Agriculture Ministry’s supply agency, the Conab, would result in the largest crop area in the country for three years.

Soybeans will account for the largest rise in plantings, Conab predicts. There is also a large increase in the area dedicated to corn (up 1.5 to 3%) and cotton (up 2.3% to 8%). There is an expected recovery in the wheat area as well, which is set to be up 3%.