Soy Frontier at Middle Age

Optimists nicknamed Brazil's frontier "Soylandia" at the turn of the millennium, describing a country that would triple its soybean production in the next 15 years and suddenly rival the U.S. as world's largest soy producer and exporter. The country's unparalleled growth streak made paper millionaires out of many of Mato Grosso's pioneers and transformed landlocked farming regions. DTN's Executive Editor Marcia Zarley Taylor and South America Correspondent Alastair Stewart examine the successes as well as the challenges during the boom years and check what's ahead for Brazil's soybean growth as the frontier marks middle age.

Column: Rural Life

Optimists nicknamed Brazil's frontier "Soylandia" at the turn of the millenium, describing a country that would suddenly triple its soybean production in the next 15 years and rival the U.S. as world's largest soy producer and exporter. The country's unparalleled...

Most of Mato Grosso's soy is trucked 1,000 miles or more to port, which eats into basis prices. Brazil is working to improve the soy routes, but one of the easiest solutions is to consume more soybeans in the state itself. (DTN photo by Marcia Zarley Taylor)

Soy Frontier at Middle Age - 2

Mato Grosso in Brazil has transformed into a global soybean powerhouse, but logistical headaches remain. While Mato Grosso will see more value-added agriculture expand over the next decade, a transformation like that seen in Iowa is unlikely.

The Soybean Highway, BR-163, links Sorriso 1,200 miles to the Port of Santos in the south, but heavy reliance on trucking means inland freight costs about 50% more than shipping from north central, Iowa to the Gulf of Mexico. Port expansion along the Amazon and its tributaries to the north could drastically improve logistics and land values. (Graphic courtesy of USDA Foreign Agricultural Service)

Soy Frontier at Middle Age - 3

Brazil's much-vaunted northern corridors will start to export increasingly large portions of the Mato Grosso grain crop over the next five years. Sending soy through the Amazon will reduce onerous logistics costs and stimulate planting across the state's...