| Kory Melby BR Ag Consultant |
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Ag in BahiaThe Western region of the State, around the cities of Barreiras, which has air service to Brasilia and Salvador, and Luiz Eduardo Magalhaes (LEM), are the primary soybean, corn and cotton producing areas.
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State Pop:
15,203,934 |
Soybean farm Barreiras, Bahia, Brazil
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Bunge in LEM
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AG NOTES:
- One of the favorite stocks of large banks such as JP Morgan, Bank of America and UBS BB, SLC Agrícola (SLCE3) has just announced the purchase of 12,400 hectares of land in São Desidério, Bahia, for R$470 million. (FEB 23)
- The municipality in Brazil with the largest GDP (R3.5 billion / US$648,200,000) is São Desidério.
- Ag exports reached US$ 6.37 billion in 2022. The number is the highest in the entire historical series of Bahia, surpassing the previous record of US$ 5 billion, obtained in 2021.
Bahia is part of the dynamic northeastern part of the Cerrado known as the MaToPiBa region. This area has been one of the fastest soybean expansion areas of Brazil in recent years.
The MaPiToBa region is Cerrado or light brush and is not rain forest per se. Clearing of land can reach up to 80% of a given area. Rainfall in the northeast is more irregular. Rainfalls can range from 800 mm to 1500 depending on region and weather cycle we are in. There tends to be 7-year cycles of above normal rainfall followed by 7 years of below normal rainfall. One can see this in the productivity of crops over time. We are currently in a period of above normal rainfall for the northeastern region.
In the last seven years, Bahia has expanded planted area of soybeans from 1 million hectares to 1.6 million hectares. Production of soybeans has increased from 3.5 mmt to 6.3 mmt this past season 17/18.
Bahia is known for high productivity and high quality cotton production. Bahia also produces some corn, coffee, papaya, and other specialty crops.
Compared to other frontier states, Bahia is relatively close to ports. Prices for soybeans and corn are generally quite good as the freight is less than other interior areas.
I have visited Bahia several times and have solid contacts there that know the region well.
The MaPiToBa region is Cerrado or light brush and is not rain forest per se. Clearing of land can reach up to 80% of a given area. Rainfall in the northeast is more irregular. Rainfalls can range from 800 mm to 1500 depending on region and weather cycle we are in. There tends to be 7-year cycles of above normal rainfall followed by 7 years of below normal rainfall. One can see this in the productivity of crops over time. We are currently in a period of above normal rainfall for the northeastern region.
In the last seven years, Bahia has expanded planted area of soybeans from 1 million hectares to 1.6 million hectares. Production of soybeans has increased from 3.5 mmt to 6.3 mmt this past season 17/18.
Bahia is known for high productivity and high quality cotton production. Bahia also produces some corn, coffee, papaya, and other specialty crops.
Compared to other frontier states, Bahia is relatively close to ports. Prices for soybeans and corn are generally quite good as the freight is less than other interior areas.
I have visited Bahia several times and have solid contacts there that know the region well.
2nd largest Ag Show in Brazil
AG INFO
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SOYBEANS BAHIA
2020/2021: 1.7 million hectares of soy were planted. In 2013, soy, planted area for Bahia was 1.21 million hectare. Soy, planted area of Bahia increased from 434,036 hectare in 1994 to 1.21 million hectare in 2013 growing at an average annual rate of 5.74 %. |
