Page 30 - Vol.39-No.1

BRAZIL AGRICULTURE EXPORTS

domestically account for most sales, as allow farmers to extend their efficiency.
most international companies have their In 2019, AGCO introduced its Fendt
local production setups in the country. branded machinery and equipment in Brazil.
In 2021, Mahindra launched its 86-110 With thins, Fendt introduced three product
Premium tractor in Brazil which belongs to lines to Brazil: the Fendt 1000Vario series,
the 110 HP range. To meet the needs of a the Fendt IDEALTM combine series and
wider group of farmers, Mahindra launched the Fendt MOMENTUMTM folding planter.
tractors of different horsepower and wid- In October 2019, Deere and Company
ened its offering in the Brazilian market. acquired Unimil, a privately-held Brazilian
With the launch of these powerful tractors, company in the aftermarket service parts
Mahindra aims to support the farmer. business for sugarcane harvesters. Through
The Brazilian agricultural machinery mar- In 2021, CNH Industrial launched “AGX- this acquisition, Deere and Unimil may
ket is fairly consolidated, and it is dominated TEND” in Brazil, an innovative platform for expand their product portfolio and serve
by global manufacturers, as farmers prefer digital agricultural solutions offering the cost-effective solutions for customers.
international companies for assurance of best standards for all stages of the cultiva- South Africa’s agricultural exports saw a
quality and after-sales services offered by tion cycle, to benefit all types and profiles 12% or about R51 billion quarter-on-quar-
the big companies. Machines manufactured of farmers. AGXTEND develops and pro- ter increases dur
vides ground-breaking technologies that
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CEREAL PRODUCTION IN 2022 ESTIMATED AT

RECORD LEVEL DUE TO LARGE PLANTINGS

Harvesting of the 2022 wheat crop was precipitation amounts are forecast between
virtually completed in mid December and January and March 2023 in central and
production is officially estimated at a record southern regions, with positive effects on
level of 9.5 million tonnes. The bumper har- crop yields.
vest is due to large plantings, 35 percent Cereal exports forecast
above the five year average, as farmers
responded positively to the high level of at record high in 2022/23
domestic prices at planting time. marketing year
According to official estimates, the 2022 Exports of maize, the country’s major
cereal production sets a new record of exportable cereal, are forecast at a record
134.6 million tonnes, reflecting above av- of 40.5 million tonnes in the 2022/23
erage sowings of maize and wheat. While marketing year (March/February), nearly
maize output reached an all time high at 35 percent above the previous five year
113.1 million tonnes, paddy production average. This is mainly due to the large
was at a below average level 10.8 million domestic availability of maize following the
tonnes as dryness induced a contraction record production harvested in 2022. Sim- Prices of wheat more than
in plantings. ilarly, the ample supply of the 2022 wheat 10 percent above year
Conducive weather crop is expected to result in well above earlier levels in November
conditions forecast for average exports in 2022/23. Despite the 2022
reduction in the exportable surplus, exports
2023 maize and of rice in 2022 (January/December) are Wholesale prices of wheat declined be-
paddy crops also estimated at an above average level, tween August and November 2022 due
driven by strong international demand. As to the improved seasonal availability of
Planting operations of the 2023 minor a result, cereal exports are forecast at a grains from the 2022 bumper harvest.
season maize and paddy crops are nearing record level of 44.3 million tonnes in the However, as of November, prices were over
completion. Planted area with the 2023 2022/23 marketing year. 10 percent higher year on year, following
paddy crop is estimated to be over 10 the sharp increases during the first half of
percent below the five year average, as 2022. Prices of maize have weakened in
some farmers opted to switch to more prof- recent months and were below their values
itable soybean crops, while soil moisture in November 2021, reflecting the 2022
deficits affected major cropping areas in the record production. Prices of rice, which
south. While the area sown to the minor declined between April and December
maize crop is estimated to be near average, 2021, following the above average output
plantings of the main season maize crop harvested in 2021, generally weakened
are officially forecast at a record high, re- in 2022.
flecting a continuous expansion in the key
producing state of Mato Grosso. Average
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28 Vol. 39 No. 1