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The wheat seed business in Brazilqrcode

Apr. 22, 2013

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Apr. 22, 2013
The 2011 wheat crop in Brazil produced one of the greatest harvests during the last few years, in both productivity and quality. Wheat production is estimated in 5.6 million tons, compared to 5.02 million tons in the last one. Even with a reduction of 11.8% in acreage, wheat production will increase by 11.5% in volume. Southern Brazil is the center of this production.

 Brazil has a good wheat research program. Recent information indicates that there are 7 organizations that develop wheat breeding: 3 are public and 4 are private. All organizations are releasing about 5 wheat breeding cultivars per year. At this time, more than 40 cultivars are available for farmers.

More recently, we see more seed groups becoming interest in creating wheat breeding activities. In order to do that they try to use experienced breeders that are retiring from public institutes.

As far as seed producers go (seed companies) in Brazil, approximately 120 companies are offering 120 cultivars. Most of the seed companies are located in Southern Brazil.

Assuming a planted area of 2.5 million hectares, seed utilization of 120kg per hectare represents a potential demand for 300,000 tons of seeds.

Considering that only 70% of the area sowed uses improved seeds, the demand is reduced in about 210,000 tons. Considering  an average price of USD 0.58/kg gives us a market value of USD 120 million. The Southern region represents more than 90% of planted area.
Source: MNAGRO

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