Apr 28, 2023

Record Soybean Yields Reported in Piaui in Northeastern Brazil

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

Soybean production has been expanding in northeastern Brazil in recent years due to lower land costs and reduced transportation costs to ports in northeastern Brazil.

With 80% of the soybeans harvested in the state of Piaui in northeastern Brazil, the president of Aprosoja do Piaui is expecting a record statewide yield of 63 sacks per hectare (56.3 bu/ac). This would represent an increase of 10% to 13% compared to 2021/22.

The record large crop is causing problems with storage and logistics. The grain storage capacity in the state has not kept pace with the increased production causing farmers to either sell their soybeans directly from the field or invest in temporary storage such as silo bags.

The transportation system in the state has also not kept pace with the increased production. Most rural roads in Piaui are not asphalted resulting in muddy and impassable conditions during times of heavy rains. When trucks are stuck on the muddy roads, harvesting operations come to a halt because the combines dump directly into trucks parked on the edge of the fields. If no trucks are available, harvesting stops.

Farmers are also complaining because the cost of producing the 2022/23 crop was the highest in history and recent soybean prices have been declining. Fortunately, the record high production has compensated for most of the recent price declines.