South American agricultural powerhouse Brazil is set to become the worldâs biggest corn exporter in 2023, ahead of the US. It had previously done this in 2013, when it produced 76 million tons and exported 26.2 million tons, although the US agro economy suffered from drought that period.
Traditionally, Brazil has always exported way less corn than it produces. However, for 2023, the export is expected to rise with its production levels as well. According to the US Department of Agriculture (USDA), Brazil could export 52 million tons of corn this year against the US 49 million tons. However, to do this, the country has to produce 124.9 million tons of the crop.
It is impressive that corn has become Brazilâs main crop because it is considered a second crop, usually grown after farmers harvest their first crops.
The amount of work that needs to go into the production of corn in Brazil this year is no small feat. For example, the production landmark it has its sights on is over 10% higher than what it achieved in 2022.
Brazilâs corn production has shown a tendency for taking a step back every two or three years since the 1980s, according to an Index Mundi table. In fact, if the country manages to surpass its last yearâs output, it will for the third consecutive year it has produced more corn than the previous one, a feat it last achieved in the late 1970s.
Why is corn so lucrative?
Not all the corn are for direct consumption and neither are they for food processing. The crop is now more lucrative because it is important to corn ethanol factories which mix them with gasoline to reduce air pollution. This type of fuel, E10 and E15, are cheaper, reduce engine knock, offer more efficiency, and can be used directly in most vehicles without engine modifications.
Brazil is rising to the occasion. It still has a lot of land available for planting corn and the government is eyeing improving equipment. Farmers also feel encouraged to put in more effort into growing corn.
