Caramuru wants sunflower to be the ‘BBB’ of the Midwest in competition with corn

Sunflower crops are encouraged by Caramuru to compete with corn (Image: REUTERS/Ilya Naymushin)

Sunflower may not have the commercial liquidity that corn has in any direction you look at domestic and foreign demand, but it could be the ‘BBB’ of the Midwest. In addition to being beautiful, it is considered good and cheap, due to the valued commercial results it delivers, having a low production cost and requiring less water.

Caramuru Alimentos has to process more of the plant, which represents only 2% of its revenue of around R$ 8 billion.

Cooking oil, one of the most expensive on the shelves – like canola oil, also produced by the group – is the main business of the plant’s entire mix.

In the Midwest, the company’s base, the company’s incentive for suppliers is the cost of production, vis-à-vis corn, its main competitor in the winter period: the hectare costs R$ 2,300.

In high-tech farming, announces Túlio Ribeiro, Sunflower Business coordinator for the Caramuru group.

Corn is worth BRL 3,200 in expenses for the producer, in medium/low technology.

With less water demand, around 250 mm of water, sunflower can withstand more severe weather conditions than corn.

Sunflower oil
Value-added cooking oil is the main derivative of sunflower (Image: Pixabay)

The agronomist also explains that the supply of sunflower is too limited to meet the commercial need – where a large part of Argentina comes from to supply the market -, even with a certain degree of limitation in the consumption of oils to the higher strata of the population.

Conab projections for 22/23 are for an increase in the planted area, to almost 60 thousand hectares in production, just 2.5% above, while the Argentineans usually produce more than 1.5 million/ha.

Caramuru is among the 100 largest agribusiness companies and is a leader in the processing of soy, corn, sunflower and canola.

Source: Moneytimes

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