BRAZIL: THE SOYBEAN MARKET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R000401960001-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: August 6, 2010
• Sequence Number: 1
• Publication Date: July 12, 1983
• Content Type: MEMO

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fPntrni IntpIIotnre Apenrv 9j'
DIRECTORATE OF INTELLIGENCE
12 JULY 1983
Brazil: The Soybean Market
Brazil now ranks second to the United States in the
production and export of soy products.
According to US Department of Agriculture statistics,
Brazil will harvest about 15 million metric tons of soybeans
during the current crop year (table attached). The crop is
allocated as follows:
-- About 10.3 million tons is processed into meal, 80
percent for export. The trade publication, Oil World,
indictes that Brazilian soymeal is mainly exported to
the EEC and Soviet Bloc countries.
-- Brazilians will consume aout 2.1 million tons of meal
internally, primarily as feedstock for the livestock
and poultry sectors.
-- Another 2.5 million tons is processed into oil, about
60 percent for use by Brazilian low-income
consumers. The remainder is exported, mainly to Mid-
Eastern markets.
- About 1.2 million tons of beans is consumed in Brazil
and about 1.0 million tons is exported worldwide.
- Brazil will hold about 4.5 million tons of beans in
stock at the end of the harvest and another 1.1
million tons in meal and oil.
This memorandum was requested by the Deputy Secretary of Treasury. It was
prepared by South America Division, Office of African
and Latin American Analysis. Questions and comments may be directed to
Chief, South America Division, ALA
ALA-M-83-10111X
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Unlike Washington, Brasilia intervenes heavily in the
market. Prices are controlled, especially for soybean
products, at the retail level. To assure an adequate domestic
crop, however, farmers are treated to production incentives.
The government guarantees producers a support price for
soybeans. Farmers have the option of selling at market or to a
Brazilian government agency. Soy producers are also treated to
subsidized credit for production and marketing expenses.
Export marketing is also government controlled. Export
taxes and quotas are used to assure adequate domestic soy
supplies. Overseas marketing is handled by government and
private firms. We believe Brazilian government trading
companies are primarily responsible for handling sales to
Soviet countries, especially those to the USSR guaranteed under
long-term trading agreements. The private sector--Brazilian
cooperatives and US multinational trading companies--apparently
play the major role in shipping soy products to free-world
destinations. These sales are negotiated annually on a
contractual basis.
Brazilian soy exports are mainly shipped in the second
half of the calendar year. The crop is planted in November and
December, and the growing season lasts through March.
Harvesting commences in April and is generally completed by the
end of May. Export sales begin in June with the bulk sold in
the September-November period.
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Brazil:
Soybean Production and Trade
(1,000 Metric Tons)
1980/81
1981/82
1982/83
Production
15,200
12,835
15,000
(Brazil/World)
18.8%
14.9%
15.7%
Exports
1,812
740
930
(Brazil/World)
7.1%
2.5%
3.3%
Imports
1,069
1,235
300
(Brazil/World)
4.0%
4.1%
Negl.
Crush
927
1,500
1,875
(Brazil/World)
1.3%
2.0%
2.4%
Ending Stocks
4,467
4,459
4,549
(Brazil/World)
28.6%
31.2%
23.5%
Soybean Meal
(1,000 Metric Tons)
Production
10,615
9,643
10,285
(Brazil/World)
18.7%
16.3%
16.8%
Exports
8,587
8,130
8,100
(Brazil/World)
43.2%
39.4%
37.1%
Imports
(Brazil/World)
Consumption
1,699
1,967
2,100
(Brazil/World)
3.0%
3.3%
3.4%
Ending Stocks
1,092
638
723
(Brazil/World)
48.0%
39.5%
38.7%
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Soybean Oil
(1,000 Metric Tons)
Production
2,601
2,329 2,500
(Brazil/World)
20.3%
17.9% 18.4%
Exports
1,265
908 925
(Brazil/World
36.3%
25.3% 25.8%
Imports
--
6 16
(Brazil/World)
--
Negl Negl
Consumption
1,419
1,361 1,550
(Brazil/World)
11.1%
10.4% 11.3%
Ending Stocks
285
351 392
(Brazil/World)
17.1%
23.0% 26.3%
SOURCE: US Department of Agriculture, World Oilseed Situation, June 19.83.
Tftri ACCTCTCn
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Brazil: Soy Exports by Market
(1,000 Metric Tons)
Soybeans1
Total 500.8
USSR 255.5
Mexico 178.1
Other 67.2
Soybean Mea12
Total 1,917.2
France 703.9
USSR 406.3
Netherlands 240.8
Hungary 134.3
Other 431.9
Soybean Oil2
Total 185.5
India 84.5
Iran 52.1
Other 48.9
2 Exports during Jan-Dec 1982
Exports during Jan-Apr 1983
SOURCE: Oil World, 16 June 1983.
UNCLASSIFIED
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