Brazil paves way to becoming world’s top cotton exporter as production gap with US nears

Following a period of devastation caused by a pest known as the boll weevil, cotton production in Brazil has undergone significant transformations in recent years. Up until the 1980s, for instance, Brazil was a cotton exporter. The fiber was grown on small properties in São Paulo and Paraná and harvested manually.

During that time, the pest decimated production, and the country became an importer in the 1990s, according to Miguel Faus, President of the National Association of Cotton Exporters (Anea). The return to the status of an exporter came with cotton cultivation on large properties in central Brazil, utilizing mechanized harvesting.

In the 2000s, these farmers began planting cotton as a second crop, in rotation with corn. “In Mato Grosso, which is the largest producing state, 80% of cotton is now planted as a second crop,” notes the President of Anea.

In terms of production, Brazil is set to surpass the United States in the 2023/2024 crop year, according to the United States Department of Agriculture (USDA). Brazilian cotton productivity is currently 1,900 kilograms per hectare, more than double that of the United States (900 kilograms per hectare). “In the next crop, we should see an increase in cotton acreage because prices are good, productivity is excellent, and corn currently has a negative margin,” observes Faus.

Domestic Consumption

However, surpassing the United States in exports and becoming a leader in foreign sales is possible if the crop failure in the American state of Texas is greater than expected, says the President of Anea. One obstacle to breaking this barrier is that domestic cotton consumption in Brazil is high (approximately 700,000 tons), exceeding that of the United States, which stands at 468,000 tons. “The exportable surplus there is greater than here,” he emphasizes.

Nevertheless, in addition to productivity gains, the sector has been investing in the quality and sustainability of the fiber, a requirement of international buyers.

The chart below displays Brazil’s cotton exports (hs 5200-5201), measured in metric tonnes, recorded between January 2019 and July 2023. The data is from DataLiner.

Cotton exports from Brazil | Jan 2019 – Jul 2023 | WTMT

Source: DataLiner (click here to request a demo)

For the past three years, the Brazilian Association of Cotton Producers (Abrapa) and Anea have initiated a program called Cotton Brazil to promote Brazilian cotton abroad. The program has an office in Singapore, and seven international missions have been conducted, bringing representatives from 150 industries to see how Brazilian cotton is produced, adhering to sustainability and quality criteria.

Faus states that Brazilian cotton is working quietly. In his opinion, the commodity is already replicating soybeans’ effect on Brazilian agribusiness. “Surpassing the United States is a detail for us.”

Source: Exame

To read the original news report, please visit https://exame.com/agro/brasil-pode-se-tornar-um-dos-maiores-exportadores-de-algodao-apos-vencer-a-praga/

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