Multinational Bunge has acquired 100 percent of Moinho Pacífico, the largest wheat mill in Latin America. The agricultural giant now owns the industrial plant in the port of Santos (state of São Paulo) and the infrastructure complex at the port that stores 200,000 tons. The value of the transaction was not unveiled by the parts involved, but Raul Padilla, Bunge’s CEO, said that this was the biggest investment in the last years.
Brazilian newspaper Valor Econômico cited today that the previous Bunge investment was the construction of a new mill in Rio de Janeiro with R$ 500 million and a capacity to grind 600,000 tons, while Pacífico has a capacity to crush nearly 700,000 tons.
Executives of AGCO, the company that owns Massey Ferguson and other major machinery brands, forecast that there will be a fall of 20 percent of sales of the group’s products in South America. According to Martin Richenhagen, AGCO’s global CEO, the reduction will happen because of the policies of the Brazilian government and a huge delay of credit releases.
“The[Brazilian] government created a strategy to finance the crop and does not have money to finance it,” summarized Richenhagen, blaming the bureaucracy for the delay. From January to July, Massey Ferguson sold 8,138 tractors in Brazil, a drop of 27.1. percent compared to last year.
The wheat harvest in the Brazilian state of Paraná advanced to nearly five percent of the planted surface, according to data released by local agencies. Nearly a third of the crop is described as just average or with poor quality, mostly because of the early planting of the winter cereal. If the projections of Brazil’s National Supply Company (Conab) are confirmed, the state will be the top producer in Brazil with an output of 3.96 million tons – a growth of nearly four percent compared to 2014.
With the value of the dollar reaching R$ 3.58, the highest value in 12 years, anticipated sales of soybeans have gained strength in Brazil recently. In the state of Mato Grosso, the country’s top producer of the oilseed, sales reached nearly 60 percent. For Nelson Piccoli, president of the Federation of Agriculture and Livestock of Mato Grosso, the rapid commercialization is a matter of need. “This a guarantee of income to pay the commitments of next year,” analyzed Piccoli.
As a way to protest against the agricultural policies of Argentina’s government, the top five farm associations from that country have stopped to sell grains and other products starting today until Friday’s midnight. Some roads throughout Argentina will be blocked as a way to call for more attention of the public. According to the associations, most farms are not being profitable growing corn, wheat, soybeans and sunflower because of trade restrictions and taxes on exports. In northern provinces such as Salta the transportation costs are also a problem, accounting up to 80% of corn costs.
The Mato Grosso Institute of Agricultural Economics (Imea) revealed that the harvest of the second corn crop in the state of Mato Grosso reached 95.7 percent of the total surface until the end of the first two weeks of August. The rains ceased and allowed producers to advance faster the works.
In the state of Paraná, local agencies say that the harvest got to 79 percent until August 17 and 93 percent of the corn crop is considered in good conditions. Regarding the second crop alone, Brazil’s National Supply Company (Conab) forecasts a production of 54 million tons.
After the losses generated by floods on several winter crops of producing regions of Argentina, forecasters say that those regions will not see significant rains in the coming weeks. José Luis Aielo, part of the Strategic Guide for Farm Business of the Buenos Aires Cereal Exchange, said that rains in provinces such as Buenos Aires, Córdoba and Santa Fe will be normal until October. “The El Niño phenomena will start in November and that will be good for all summer crops,” summarized Aielo.
The Ministry of Agriculture of Paraguay announced that recently Qatar has opened its beef market for Paraguayan meat. After a meeting with ministers of the country, the ambassador of Qatar in Asunción affirmed that his nation needs safe and quality food suppliers and Paraguay is certainly that. Qatar’s per capita is nearly US$ 102,000 annually, one of the highest in the world.
Consultancy Trigo & Farinhas has announced in a press release this week that the wheat surface in Brazil will be reduced by 10.90 percent in the current season to 6.07 million acres. The consultancy highlighted that the area in the southern states shrank by nearly 12 percentage points, while it has increased by over 10 points in the Southeastern and Center-western regions.
For Luiz Pacheco, director of Trigo & Farinhas, the numbers present a clear trend. “The absolute numbers [of growth in those regions] are not expressive yet, but indicate a trend,” summarized Pacheco, who cited productivity, accessibility, and profitability as the top reasons for the growth.
Productivity in Center-western states of Brazil are over 59.39 bushels per acre, while the southern states, which have the highest volume currently, produce an average of 41.05 bushels per acre.
The grain exports in Argentina have accumulated until last week nearly US$ 14.2 billion, according to a report released by the Chamber of Oil Industries of Argentina and the country’s Center of Cereal Exporters. Last week alone, the value accumulated was US$ 355.5 million. Considering the volume over the same period of last year, there was a drop of 16.5 percent. Comparing just the July figures, the fall was 19 percent. This year, Argentina harvested a record of nearly 61 million tons of soybeans – 14.2 percent more than 2014.