Russia shifting soy crops to Brazil
head, Yug Rusi, a major agri-business group there, has confirmed it
is considering plans to start growing soy beans in Brazil.
Following a series of trips to investigate the possibility of importing soy crops in from Brazil, currently one of the largest suppliers in the world, the company said it might prove cheaper to rent out the land and start growing the crop there itself. Given the economic, geographic and climatic conditions, the company said that it would be cheaper to produce in Brazil and re-import to Russia.
The company is considering leasing around 20,000 hectares to begin with, a company spokesman confirmed with CeeFoodIndustry.com. The spokesman also confirmed that the CEO Sergei Kislov is presently in Brazil to conduct the final round of discussions on the matter.
Kislov originally went to Brazil to source soy supplies for his company in Russia and signed a deal to buy one million tons of the crop. However, subsequent price analysis has proved that it will prove cheaper to grow the crop there.
It is estimated that the cost of growing a ton of soy beans in Brazil is $150 million, whereas in Russia, increased labour costs and a shorter growing season push costs up to around $210 a ton.
