The famous BR-163 highway, connecting Mato Grosso to the Amazon river and export ports, was finally completed in 2019, and will likely lower the cost of bringing Brazilian soybeans to market. Second, Brazil was lacking the underlying infrastructure to move physical product and spent years investing in roads and railways to solve the issues. Thus, Brazil has multiplied its production by a factor of eight, while United States production has grown by 130 percent. Production growth in the United States has been driven predominately by yield growth since the 1980s, while Brazil production growth has been driven by both yield growth and land under cultivation. First, Brazil simply had a significant amount of usable and relatively inexpensive land on which to grow crops. Several factors allowed Brazil to emerge as the global leader in soybean production and exports. The Center-West now produces about half of the soybeans in Brazil. Over the decades, production moved from the southern Brazilian states of Parana and Rio Grande do Sul into the Center-West region and states like Moto Grosso. Specifically, in the last several years, Brazil has overtaken the United States as the world’s largest producer and exporter of soybeans.īrazil emerged as a significant soybean producer during the 1970s and 1980s, as different varieties of soybeans more adaptable to the Brazilian climate were introduced. In recent years, other countries and regions have grown in importance – the Black Sea has become a major player in corn and wheat and South America has emerged as a leading global supplier of soybeans. Throughout the 20th century, the United States was the largest global exporter of most grains and oilseeds, including corn, wheat, and soybeans.
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