INTERVIEW: Brazilian soybean production, environmental conservation to grow hand in hand, says CONAB

Brazilian soybean production and environmental conservation initiatives are set to grow simultaneously, contrary to the general perception that rampant expansion in soybeans acreage has endangered Brazil's flora and fauna through deforestation, climate change is a major worry for the country's farming community too, Sergio De Zen, director of Agricultural Policy and Information at the Brazilian Ministry of Agriculture's Supply Management Company, or CONAB, told S&P Global Platts in an interview.

"The Brazilian farmers are the ones who are most concerned about possible environmental impacts of deforestation," Zen told Platts. "The farmers, who constantly have to endure volatile market conditions and financial risks, have become aware that they need to conserve the natural resources (flora and fauna) to induce steady rainfall and enhance productivity."

Brazil is the world's largest soybeans producer and exporter and at 138 million mt in the crop year 2020-21 (September-August), accounted for roughly 38% of global beans supplies.

If that's not all, the South American agricultural powerhouse is set to achieve an unprecedented level of beans production in the coming years.

According to CONAB, Brazil's soybean production is forecast to grow to 152 million mt by 2028-29, up 10% on 2020-21 levels, with planted area projected to grow 15% to nearly 45 million hectares.

More importantly, in a span of 20 years between 2008 and 2028, the soybean planted area is set to grow by 109%, the highest for any crop, while the second-fastest acreage expansion rate belongs to corn at 30%, CONAB said.

Although, CONAB maintains that the soybean acreage expansion primarily consists of degraded pastures, it also concedes that some portion of the acreage will come from new land, which could possibly comprise forests and tropical savannas.

The expansion of soybean area is expected principally due to conversion of degraded pastureland into soybean area, though clearing of new land for production will also contribute to greater planted area, CONAB said. Much of the area of beans acreage growth is expected in Mato Grosso and the Matopiba region (Maranhao, Tocantins, Piaui, and Bahia), it said.

Incidentally, these states comprise the eastern frontier of the Amazon rain forest, called the greenhouse of the world for its rich and unique biodiversity. The forest has become extremely fragile amid widespread deforestation over the last three decades on rapid expansion of industrial and agricultural sectors.

According to various scientific research, the destruction of the Amazon is likely to accelerate global warming by 55%.

The environmental groups believe that the rapid expansion of soybean farming in Brazil is stressing the fragile ecosystems such as rainforests and savannas. They believe soybean cultivation is intruding into the natural habitat of central Brazil, leading to soil erosion and degradation.

But CONAB insists that the laws are in place to protect the ecosystem and act as a deterrent to illegal farming practices.

"The Brazilian laws impose a conservation area in each biome, such as 80% of the Amazon (rainforest) and 35% of Cerrado (tropical savanna) are protected areas," Zen said. "Farmers who do not obey this law can get fines and even lose their lands," he said.

"In Brazil, the environmental legislation determines that only 20% of the areas in the Amazon biome can be deforested, and that too with proper authorization from the local authorities, which is costly and not easy to get," Zen said.

Having said that, CONAB accepts that there could be a degree of deforestation linked with soybean farming.

Research indicates that over 20 million hectares of Brazil's forest cover have been lost to soybean cultivation in the last 30 years.

"The reduction or complete extinction of deforestation is the subject of debate," Zen said. "This (deforestation) is one of the major reasons that lead the introduction of technology to improve soybeans productivity in Brazil," he said.

According to CONAB, rather than deforestation, the Brazilian soybean farming community is now focused on converting degraded pastures into beans farmlands.

"The potential for productivity in pastures is enormous and does not impact livestock production at all," Zen said. "Brazil is targeting increased productivity, the use of degraded areas, new production technologies, and especially the planting of second and third crops," he said.

There has been a widespread call for sustainable farming in the Brazilian soybeans sector and CONAB acknowledges it.

"A great example of sustainability in Brazilian agriculture is the cycle of land use during the 12 months of the year," Zen said. The productive cycle starts with soybeans at the end of September, changes into corn in February, and later into pasture in July," he said.

"This increases land availability and reduces the pressure to search for new areas," Zen said. "It also reduces soil loss from the action of tropical rains, optimizes fertilizers and correctives, and reduces the use of chemical pest controls," he said.

There have been talks of more collaboration between the Brazilian government and large agricultural conglomerates active in the country, such as Bunge, Cargill, ADM, and Louis Dreyfus, on climate change issues.

CONAB sees it as an opportunity to lead the conservation initiatives.

These companies are welcome to avail CONAB's resources to make farming more sustainable in Brazil, Zen said.