Business - February 2, 2024

Brazil Emerges as a Powerhouse in Global Cotton Production and the US Supremacy

For the first time in history, Brazil is on the verge of surpassing the United States in cotton production, solidifying its position as the third-largest global producer of the fiber, trailing only behind China and India. This milestone is expected to be achieved in the 2023/24 crop, according to projections from the United States Department of Agriculture (USDA).

The USDA itself estimates that Brazil will reach a cotton harvest of 3.2 million tons in the 2023/24 season, representing a remarkable 25% growth compared to the previous crop (2022/23). This projection places Brazil in a prominent position, highlighting a significant advance in cotton production.

One of the factors pointed out by the USDA for the increase in cotton production in Brazil is the geographical shift in planting over the past decades. Twenty-five years ago, Mato Grosso accounted for only 23% of national production. In the 2023/24 season, the state will be responsible for producing alone 71% of Brazilian cotton. Geographical migration, coupled with productivity gains, has elevated Brazil as a relevant player on the international stage. The average yield of cotton in the fields will reach 1,928 kilograms per hectare, a 20% increase compared to the previous crop’s productivity.

Although some Brazilian consultancies indicate that the country will surpass the United States in exports as well, the USDA still ranks Brazil second in the ranking, with estimated shipments of 2.4 million tons. The entity acknowledges that Brazilian exports have been driven by the devaluation of the Real against the dollar and the increased importing demand from China and Bangladesh. Additionally, recurrent production declines in China, India, and the United States have allowed Brazil to occupy more space on the international stage.

These developments in the cotton sector reflect not only the evolution of Brazilian production but also the complex interactions between geographical factors, agricultural productivity, and global economic dynamics. Brazil’s rise as a protagonist in the cotton market signals significant changes in the power balance of this essential commodity, shaping the future of the sector in a dynamic and impactful way. The global cotton community will undoubtedly closely monitor the repercussions of these changes as Brazil prepares to consolidate its position as an undeniable force in global cotton production.Parte superior do formulário

Photomontage: By Jakson Santos

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