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Brazil's acreage for soybeans will increase only slightly in 2024/25 season, says farmers group



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Adds comments from McKinsey in paragraphs 9-11

By Roberto Samora

SAO PAULO, Aug 5 (Reuters) -Acreage where soybeans are cultivated in Brazil will increase at a slower rate for the 2024/25 season than in previous ones as future prices for the oilseed are near a four-year low, Mauricio Buffon, president of farmers group Aprosoja Brasil, said on Monday.

Brazil is the world's largest producer and exporter of soybeans, with China being the biggest market.

"We believe that areas where soy will be planted should have one of the smallest growth rates," he told reporters on the sidelines of an annual conference, organized by Brazil's agribusiness association Abag.

Soy futures have been nearing the lowest levels since October 2020 amid expectations of more favorable weather for crops in the United States and concerns over a possible slowdown of the economy.

Brazil's acreage where soybeans are cultivated rose 4.5% to 46 million hectares in 2023/24 compared with the previous season, and 6% in 2022/23, according to data from government's crop agency Conab.

"I don't know if it (the growth in 2024/25) will reach 1%," Buffon said, adding that deadly floods in the country's southernmost state Rio Grande do Sul were also a limiting factor.

Earlier this year, floods devastated areas where soybeans could be planted and left many farmers reeling financially.

The estimate is in line with projections released by private analysts: Consultancies StoneX and Datagro forecast increases of 0.79% and 1.5%, respectively. It would be the 18th consecutive increase, Datagro said.

McKinsey & Company estimated that between 70 million and 80 million hectares would be needed worldwide by 2030 to produce food.

"We're a country with greater potential in this," Nelson Ferreira, a senior partner and global leader of agriculture at the consultancy, said at the same event.

To produce food in a more sustainable way, without deforestation, Ferreira said it was necessary to "accelerate" the recovery of degraded areas.



Reporting by Roberto Samora; Writing by Andre Romani; Editing by Stefanie Eschenbacher and Jonathan Oatis

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