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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.01+1.6%Nov 12 4:00 PM EST
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To: TobagoJack who wrote (16530)4/6/2007 12:32:36 AM
From: elmatador  Read Replies (1) of 217735
 
To Fortify China, Soybean Harvest The challenge of supplying China is already showing signs of strain. A soybean boom has turned to a bust in the last two years for many farmers here in Mato Grosso, a state in western Brazil the size of Texas and Kansas that produces more than a third of the country’s beans.

A Bumpy Ride on a Brazilian Highway, and Long Waits at Either End (April 6, 2007) Near Rondonópolis, Rogerio Salles watched recently as a handful of combines harvested the last soybeans on his 17,500-acre farm ringed by eucalyptus and rubber trees. “Just because we’re producing a lot of beans here doesn’t mean we’re making money,” he said.

The strong Brazilian currency and a transportation bottleneck are conspiring against many Mato Grosso farmers. Most of the beans are trucked south more than a thousand miles along highways riddled with potholes. At the ports, some ships wait at anchor up to a month before finding a dock to load the beans.

“If major investments are not made in transport infrastructure, China cannot count on this region being a stable supplier to its market,” Mr. Salles said. “There’s a lot riding on this.”

Moving soybeans from Mato Grosso to ports in Brazil costs more than four times what American farmers spend to get beans from the Midwest to New Orleans and the Pacific Northwest. As a result, Brazilian farms realize far less for their crops than their American counterparts.

nytimes.com
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