BRAZIL: THE SOYBEAN MARKET

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85T00287R000401960002-2
Release Decision: 
RIPPUB
Original Classification: 
C
Document Page Count: 
5
Document Creation Date: 
December 22, 2016
Document Release Date: 
August 6, 2010
Sequence Number: 
2
Case Number: 
Publication Date: 
July 12, 1983
Content Type: 
MEMO
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PDF icon CIA-RDP85T00287R000401960002-2.pdf146.84 KB
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Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 25X1 . Central Intelligence Agency 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 b the Deputy Secretary of Treasury. it was prepared by ouch 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 Duplicate of C05511687: RIP 25X1 25X1 25X1 25X1 25X1 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 25X1 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. 25X1 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.0 25X1 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. 25X1 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. 25X1 2 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 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% iiru i AccTFTFD Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 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 1983. IN(i / TrTrn Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2 UPII,LMJJlf iLU Brazil: Soy Exports by Market (1,000 Metric Tons) Soybeansl Total 500.8 USSR 255.5 Mexico 178.1 Other Soybean Mea12 67.2 Total 1,917.2 France 703.9 USSR 406.3 Netherlands 240.8 Hungary 134.3 Other Soybean Oi12 431.9 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 Sanitized Copy Approved for Release 2010/08/06: CIA-RDP85T00287R000401960002-2