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	Characteristics, transformations and sustainability of soybean expansion in MERCOSUR by Marcela Bocchetto, Policy and Programme Officer

The cultivation of soybean has maintained an important growth in its production levels during the last 10 years, being mainly MERCOSUR the block that leads this process, subject to the increase in demand and as a result of the better performance of world economy. This trend of expansion is expected to continue in the future in accordance to the projections made by the Department of Agriculture of the United States (USDA) due to the increase in domestic demand for vegetable oils for human consumption and flours to be used in animal feeding and the production of biodiesel; and the increasing demand on the part of China.

This expansion was also supported by the permanent adoption of the direct sowing formula and use of genetically modified varieties resistant to herbicides such as glyphosate, as from the nineties, that allowed in conjunction with the new scheme of work, a considerable decrease in implantation costs of this crop.

Nonetheless, these changes have originated important social, economic and environmental impacts in the producer countries, such as conversion of lands dedicated to grazing fields and other crops towards soybean cultivation; the monocultivation and the lack of rotations imposing new challenges on the sustainability of the productive process.

On the other hand, the growth in the industrialization of the oleaginous and the obtainment of flours and oils of soybean has generated investments, growth and employment in the production cities and linked to seaport activities.

Having in mind all these elements of expansion of soybean, its perspectives, challenges and implications in the food security and rural development policies, FAO in conjunction with the governments of Argentina, Brazil and Paraguay is carrying out a series of case studies on the subject. The purpose is to get to know the implications of this process, so as to suggest suitable public policies to make a better use of the opportunities and maintain a healthy growth.

Full document (PDF Format = 85 kb, Spanish version only) details the following issues:

Antecedents on the expansion of the crop
Economic impact of the crop and its derivatives
International trade of soybean and its by-products
Growth of the demand by China
Transformations in the agricultural productive system
Challenges on the sustainability of the productive process

The role of technological innovation in the expansion of soybean production in MERCOSUR (PDF Format = 35 kb, Spanish version only)

The technical innovations have played a fundamental role in the productive expansion of soybean. The customary stagnation in the average yields of the Region (2100 kg/ha) as from 1980, mainly due to the monocultivation of soybean accompanied by the consequent deterioration of the physio-chemical properties of the soil, added to the indiscriminate use of ample phantom pesticides with consequences on the population growth of some pests, was changed quickly by a true explosion in the adoption of direct-sowing (DS), the use of genetically modified seeds (GMO), and the use of pesticides such as glyphosate.

The Role of soybena in fighting world hunger (Formato PDF = 847 kb)

After a brief overview of the current state of food insecurity and FAO’s strategic vision in this field, the paper describes the position of soybean in agricultural production and in food consumption at both the global and developing country level. The importance of soybean in overall agriculture and trade, its contribution to food supply and related nutritional issues are discussed.
The paper then attempts to identify the key policy and market factors that actually shape the global soybean economy, leading into a discussion of implications for food security in developing countries. Overall, the study confirms the current and likely future importance of soybean for human nutrition at the global level.