Evaluating the Contribution of Soybean Rust- Resistant Cultivars to Soybean Production and the Soybean Market in Brazil: A Supply and Demand Model Analysis

Abstract

Soybean rust (SBR), caused by Phakopsora pachyrhizi (Sydow & Sydow), has become a serious issue in Brazil. As Brazil is one of the largest soybean-producing and exporting countries in the world, a considerable decrease in soybean production due to SBR would have a significant impact on the global soybean market. SBR-resistant cultivars have been developed to prevent a decrease in soybean production. This study was conducted to evaluate the effect of SBR-resistant cultivars on soybean production and the soybean market in Brazil using a supply and demand model. This model consists of functions of yield, cultivated area, exports, and stock changes of soybean and soybean products, demand for soybean products, and price linkages. Five scenarios were simulated to evaluate the economic impact of adopting SBR-resistant cultivars as follows: One without SBR infection, two with serious production losses due to SBR in the south and southeast regions and all the states of Brazil, and two with the adoption of SBR-resistant cultivars in the south and south-east regions and all the states of Brazil. Our simulations suggest that adopting SBR-resistant cultivars reduces the cost of controlling SBR by approximately half and is essential for sustainable soybean production and a stable global soybean market.