Wednesday, March 31, 2010

Brazil Defines Big

I have made many trips to Brazil over the years visiting ag-aviation operations. Actually, AgAir Update's Latin version is printed in Brazil and mailed throughout Latin America. A couple of years ago, one of my travels to Brazil took me to the state of Mato Grosso, where I traveled to the remote farming town of Primavera do Leste. Twenty years or so ago, this bustling farming town was only about 20 houses, a village. Now, there are several implement dealerships and other vendors for the farming community.

I had the pleasure of visiting one of the small farms, about 50,000 acres. It has a compound with an office that would rival any banker's and of all things, its own cotton gin! But, I stated this was a small farm for the Mato Grosso.

Let me give you an idea of what harbors in the Mato Grosso. Recently the world's largest soybean grower was out-farmed by his cousin. The once-world's largest soybean grower farmed a mere 415,000 acres. He was beat out by his cousin who farms 550,000 acres of soybeans. Imagine nearly a million acres of soybeans between taw relatives and I can assure you these two growers farm more than just soybeans.

What is even more remarkable is the cousin is a 51-year old self-starter. He was raised in a poor farm family. In the 70s when his father died, he inherited 100 acres with his seven siblings. From humble beginnings, he is now the world's largest soybean grower. Amazing.

Although this grower never finished high school, he has now nearly 4,000 employees, 300 combines and produced this year in excess of 660,000 metric tons of soybeans, about 1% of the Brazilian crop. Oh yeah, he also farms 185,000 acres of corn and 130,000 acres of cotton. I wonder how much Headline he uses? (Actually, Headline is marketed under another name in Brazil.)

People mistakenly believe growers are chopping down the so-called rainforest (I call it jungle). There is a degree of that in the Amazonia for pastureland, but the Mato Grosso is nowhere near the Amazon. It was brush land before the large farms moved in, expanding and building infrastructure.

What does all this mean? It means that Brazil, and other South American countries, have a tangible product that dominates their GNP. America should take note.

Until next time, Blue Sky and Tailwinds...

1 comment:

  1. Bill Said: What does all this mean? It means that Brazil, and other South American countries, have a tangible product that dominates their GNP. America should take note.

    Bill, that would require some common sense. :)
    barryb

    ReplyDelete