Cotton is a traditional crop in Brazil and in fact, on the last 20-30 years, there was a big area reduction due to big gains in yield. According Celeres Consulting, on the second forecast round the 2015/16 is projected to reach 1,10 million hectares which indicates 1,85 increase in area compared to past crop. Estimate yield is 1,62 t. per ha which is 5,1% higher than 2014/15 crop. Therefore, the total production should be around 7% higher than last crop. Below the key cotton growing area in Brazil. As you can see, this is a crop where there is a big concentration.
In 2014/15 the state of Mato Grosso (MT) planted about 560,000 hectares, which was about 57% of total crop and Bahia State planted about 320,000 ha. which was around 32% of total area in Brazil.
On the last 3 crops with a total production around 1,7 million t., Brazil is among the 5 top countries in cotton production in the world. Brazil is the third export country and the first in yield on dryland areas.
We are also the fifth country in domestic consumption in the world. In other words, we have a very good internal market.
Below you can see a graphic showing the Brazilian export and import of cotton in tons.
Yield and GMO
Since the crop 1998/99 the yield increase in Brazil had a tremendous growth, as you can see on the figure below – 9 tons per ha. Many factors are responsible for it, but a much better soil utilization was a key point.
The utilization of GMO cultivars had increased drastically and impacted the cotton production in Brazil. Below you can see a % of GMO used in Brazil by State.
Cotton crops use very modern technology since the sowing operation until the harvesting process.