Oct 14, 2022

Brazilian State of Santa Catarina Reduces Corn Acreage 15%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The southern state of Santa Catarina is Brazil's largest hog producing state, but the state always runs a corn deficit requiring imports of corn from other Brazilian states or from Paraguay or Argentina.

Farmers in the state have finished planting their 2022/23 corn and they reduced their corn acreage by 15%. According to the vice-president of the Agriculture and Livestock Federation of the State of Santa Catarina (Faesc), farmers reduced their corn acreage due to the high cost of production (double the production cost for soybeans) and a severe infestation of corn leafhoppers.

The early corn development has been slowed by excessive rains and cold temperatures.

The annual domestic demand for corn in the state is 7 million tons and Conab is expecting the state to produce 2.9 million tons in 2022/23. Unlike other states in Brazil, Santa Catarina only produces one corn crop because it is too cold for a second safrinha corn crop.

Much of the corn imported into Santa Catarina comes from the neighboring state of Parana where farmers had planted 75% of the first corn crop as of earlier this week according to the Department of Rural Economics (Deral). The corn is 65% germinating and 35% in vegetative development. Corn planting was slowed in part of the state due to excessive rainfall and some of the corn may need to be replanted.

The state of Parana produces two corn crops. The first corn crop is expected to produce 3.48 million tons or 18% of the total production, while the safrinha corn crop is expected to produce 15.78 million tons or 82% of the total. The first corn crop will be harvested in January/February, while the safrinha corn crop will harvested in July/August.

If the state of Parana cannot meet Santa Catarina's corn demand, the next option is importing corn from the state of Mato Grosso or from Paraguay.