The Complex Evolution of Wheat Production in Brazil

Abstract

Although Brazil today is one of the world’s largest agricultural exporters and has the highest positive trade balance, it is still a net importer of wheat. Changes in consumption stemming from European migrants, who switched from cassava flour to wheat products in the late 19th century, led to mass importation of wheat. Brazilian governments in the mid-20th century subsidized the production and sale of wheat to reduce consumer prices, but production declined when subsidies ended in the 1990s. However, in that century local production became competitive with imports and production expanded into new semi-tropical lands, thanks to major investments in new seeds and farming practices. Today, Brazil is an exporter as well as importer of wheat, with a tendency towards self-sufficiency. In this article, we analyse the complex history of wheat production in Brazil.