By Carl Zulauf, Department of Agricultural, Environmental and Development Economics, Ohio State University and Joana Colussi, Gary Schnitkey, and Nick Paulson, Department of Agricultural and Consumer Economics, University of Illinois
Grain and oilseed use and production in South America (SA) since 1980 are examined. While yields have grown faster than in the United States (US), land has been the primary reason that SA production has expanded rapidly since the mid-1990s. Stated alternatively, SA yields are increasing slower than the yield increase needed to meet the growth in SA use. Export growth is the primary driver of the increase in land, but growth in SA domestic use is also a factor. Similar analyses are available for the world (farmdoc daily, November 16, 2022), China ((farmdoc daily, December 19, 2022), United States (US) (farmdoc daily, November 21, 2022), and European Union (farmdoc daily, October 25, 2023).
Data
The data in this article are from the Production, Supply, and Distribution Online (PSD) database managed by the US Department of Agriculture, Foreign Agriculture Service. Feed grains are barley, corn, millet, oats, and sorghum. Food grains are rice, rye, and wheat. Oilseeds are cottonseed, peanuts, rapeseed, soybeans, and sunflowerseeds. The two largest producers of grains and oilseeds in South America are Brazil and Argentina.
Use
Use (domestic consumption plus exports) of SA feed grains and oilseeds has grown at an increasing rate since 1980 (see Figure 1). Over the last 10 years, the annual rate of increase has averaged +5.8% per year for feed grains and +4.1% per year for oilseeds. The annual rate of increase in use of SA food grains has been constant over time. Over the last 10 years, it has averaged +3.0% per year.
Exports
Exports of SA grains and oilseeds started growing in the mid-1990s (see Figure 2). Compared with 1991-1995 crop year exports, exports of the 2018-2022 crops were +1105% higher for feed grains, +1021% higher for oilseeds, and +156% higher for food grains.
