MercoPress. South Atlantic News Agency

Brazil targets record harvest of 160.3 million tons of grains and oilseeds in 2012

Corn is expected to advance to the expense of soybeans

The Brazilian government lowered 0.1% its estimate for the 2012 harvest that should reach 160.3 million tons, considered a record volume. Overall this year’s harvest should be 0.3% above the 159.9 million tons of 2011, according to data from the Brazilian Geography and Statistics Office, IBGE.

The 2011 harvest was 6.9% greater than the previous year and improved compared to the estimates from last November.

According to IBGE the area dedicated to agriculture this year will expand 2.7% reaching 50 million hectares.

However the soybean crop, Brazil’s number one is expected to see a 0.9% drop in volume to 74.19 million tons because a fall in productivity. Corn should expand 7.9% to 36.8 million tons because farmers have been attracted by higher prices and more acreage was planted, reports IBGE.

Rice production will drop 11.2% to 11.9 million tons because of adverse climate conditions (drought) in the state of Rio Grande do Sul, main producer of the cereal.

The 159.9 million tons of grains and oilseeds of 2011 also marked a record in exports totalling 94.6 billion dollars, up 24% from 2010.

Last year the area planted increased by 4.7% to 48.7 million hectares, 90% of which absorbed by soybeans, corn and rice.

However this year Brazil plans to export grains and oilseeds for the value of 100 billion dollars, which is 5.7% up from the 2011 record, according to Minister of Agriculture Jorge Alberto Mendes Ribeiro.