China’s and its Asian neighbors’ demand for soybeans and animal protein is increasing and analysts views differ on where the food will come from. Some are arguing Brazil will be the heart of increased production, while others are looking to Africa.
Celeres farm consultancy CEO Anderson Galvao Gomes believes the industry is quickly developing in Africa, despite the risk. He says one of his clients has just switched 200 million dollars from Brazil to Africa because of Brazilian issues, and that the tropical soybean technology used in Brazil is transferable to Africa.
And while different environmental, transportation and monetary issues are causing investors to look to Africa instead, Brazil’s former Minister of Agriculture and Food Supply Dr. Marcus Vinicius Pratini de Moraes says the country will continue to prosper in production.
Dr. Moraes says that there is no need to expand the amount of land needed for increased production, but instead increase technology.
The use of advanced technology means that Brazilian soybean farming continues to compete with the U.S. inside the farm gate. Yet, Brazil’s transportation issues continue to cause problems. Sixty percent of the country’s soybeans are still transported by road, and analysts are saying the 2012-2013 bumper crop could stretch the infrastructure to the limit.