What is the cost of producing soybeans in South America?
The cost of producing soybeans in South America varies widely by location. Generally the cost is higher the further you move toward the center of South America. In Mato Grosso for example, which is located in the middle of South America, it cost about US$ 7.00 a bushel to grow the soybeans and then about US$ 3.00 a bushel to transport the soybeans to ports in southern Brazil. One of the reasons why it is expensive to grow soybeans in Mato Grosso is because the soils have a low native fertility and phosphorus and potassium applications are required on a yearly basis to achieve maximum yields. Agricultural limestone also needs to be applied every three or four years in order to maintain an acceptable pH level. Much of the fertilizer used in Brazil is imported and it must be transported out to Mato Grosso, which also helps to drive up the costs. During the 2008-09 growing season, fertilizers were very expensive and as a result, approximately 50% of the cost of growing soybeans in Mato Gro
