GENERAL INFORMATION
Porto Alegre, March 06th, 2024 - SLC AGRÍCOLA S.A. (B3: SLCE3; ADR: SLCJY; Bloomberg: SLCE3BZ;
Reuters: SLCE3.SA) announces today its results for the fourth quarter of 2023. The following financial and operating information is presented in accordance with International Financial Reporting Standards (IFRS). The information was prepared on a consolidated basis and is presented in thousands of Brazilian real, except where stated otherwise.
In this Earnings Release, the terms below will have the following meaning:
"4Q22": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and its subsidiaries for the fourth quarter of 2022 (October to December).
"4Q23": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and its subsidiaries for the fourth quarter of 2023 (October to December).
"2022": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and its subsidiaries for the year 2022 (January to December 2022).
"2023": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and its subsidiaries for the year 2023 (January to December 2023).
"HA": Horizontal Analysis; refers to the horizontal percentage variation between two periods.
"VA": Vertical Analysis; refers to the percentage share of the account over a given total.
Cotton seed: Seed of cotton intended for planting cotton crops
Cottonseed: Sub-product from the production of cotton used for manufacturing vegetable oil and animal feed.
Aviso Legal
We make statements concerning future events that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on the information currently available to the Company. Forward-looking statements include information on our current plans, beliefs or expectations, as well as those of the Company's directors and executive officers. Forward- looking statements include information on potential or assumed operating results as well as statements that are preceded, followed by or include the words "believe," "may," "will," "continue," "expect," "project," "intend," "plan," "estimate" or similar expressions. Forward- looking statements and information provide no guarantee of performance. Because they refer to future events, they involve risks, uncertainties, and assumptions and as such depend on circumstances that may or may not occur. The Company's future results and creation of value for shareholders may differ significantly from the figures expressed or suggested in the forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.
1
FINANCIAL HIGHLIGHTS
(R$ thd) | 2022 | 2023 | HA | 4Q22 | 4Q23 | HA |
Net Revenue | 7,373,034 | 7,230,583 | -1.9% | 1,945,970 | 1,918,694 | -1.4% |
Gross Income | 3,131,299 | 2,620,694 | -16.3% | 557,029 | 133,675 | -76.0% |
Gross Margin | 42.5% | 36.2% | -6.3 p.p. | 28.6% | 7.0% | -21.6 p.p. |
Operational Result | 2,505,293 | 1,935,181 | -22.8% | 333,143 | (97,066) | n.m. |
Operational Margin | 34.0% | 26.8% | -7.2 p.p. | 17.1% | -5.1% | -22.2 p.p. |
Net Income | 1,336,733 | 937,980 | -29.8% | 132,433 | (152,986) | n.m. |
Net Margin | 18.1% | 13.0% | -5.1 p.p. | 6.8% | -8.0% | -14.8 p.p. |
Adjusted EBITDA | 3,118,444 | 2,708,699 | -13.1% | 648,251 | 673,376 | 3.9% |
Adjusted EBITDA Margin | 42.3% | 37.5% | -4.8 p.p. | 33.3% | 35.1% | 1.8 p.p. |
Cash Flow | 994,689 | 428,718 | -57.0% | 785,555 | 676,992 | -13.8% |
Invoiced Volume (tonnes)
Crops | 4Q22 | 4Q23 | Δ% |
Cotton | 97,399 | 81,516 | -16.3% |
Cottonseed (cottonseed + cotton seed) | 104,808 | 152,606 | 45.6% |
Soybeans (commercial+seed) | 202,479 | 277,928 | 37.3% |
Corn | 152,047 | 310,155 | 104.0% |
Other Crops | 21,316 | 24,427 | 14.6% |
Cattle Herd (head) | 7,908 | 13,575 | 71.7% |
Gross Income by Crop - R$/tonnes
Crops | 4Q22 | 4Q23 | Δ% |
Cotton | 2,037 | 4,583 | 125.0% |
Cottonseed (cottonseed + cotton seed) | 857 | 514 | -40.0% |
Soybeans (commercial+seed) | 1,779 | 1,026 | -42.3% |
Corn | 504 | 55 | -89.1% |
Cattle Herd (1) | (292) | 96 | n.m. |
(1)R$/head
Hedge Position - FX - Material Fact 12.04.2023 x 02.26.2024 Position
CROPS | Material Fact 12/04/23 | 02/26/2024 | Variation | |||
SOYBEAN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 99.4 | 45.8 | 99.6 | 68.4 | 0.20 | 22.60 |
R$/USD | 5.3698 | 5.2965 | 5.3683 | 5.2238 | 0.00 | -0.07 |
Commitments% | 0.6 | 29.2 | - | 15.6 | -0.60 | -13.60 |
COTTON | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 87.7 | 25 | 96.2 | 34.7 | 8.50 | 9.70 |
R$/USD | 5.5994 | 5.5005 | 5.5713 | 5.3857 | -0.03 | -0.11 |
Commitments % | - | 13.9 | - | 4.4 | 0.00 | -9.50 |
CORN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 93.1 | 45.0 | 99.6 | 59.3 | 6.50 | 14.30 |
R$/USD | 5.6232 | 5.4472 | 5.5758 | 5.3538 | -0.05 | -0.09 |
Commitments % | - | - | - | 3.4 | - | -14.60 |
Hedge Position - Commodity - Material Fact 12.04.2023 x 02.26.2024 Position
CROPS
SOYBEAN
Material Fact 12/04/23 | 02/26/2024 | Variation | |||
2022/23 | 2023/24 | 2023/24 | 2023/24 | ||
2022/23 | 2022/23 |
%
USD/bu Commitments %
COTTON
%
USD¢//lb Commitments %
CORN
%
R$/bag
%
USD/bag Commitments %
99.550.3
14.2612.75
-14.7
2022/23 2023/24
77.019.7
91.3984.97
--
2022/23 2023/24
3.93.4
56.64 45.00
94.935.0
9.538.12
--
100.058.1
14.2512.62
-10.9
2022/23 2023/24
99.240.2
90.79 85.92
--
2022/23 2023/24
3.93.3
56.64 45.00
96.134.1
9.528.12
--
0.507.80
-0.01-0.13
0.00-3.80
2022/23 2023/24
22.2020.50
-0.600.95
0.000.00
2022/23 2023/24
0.00-0.10
0.000.00
1.20-0.90
-0.010.00
0.000.00
Inputs - 2024/25 Crop Year - % acquired
Fertilizers/Crop Protection | 3Q23 | 4Q23 - 03/06/2024 | Δ% |
Nitrogen | - | 16.0% | 100.0% |
Potassium Chloride | - | 82.0% | 100.0% |
Phosphates | - | 87.0% | 100.0% |
Crop Protection | - | - | - |
2
OPERATIONAL HIGHLIGHTS
Planted Area 2023/24 crop year budget x forecast
Planted Area | Planted Area (a) | Planted Area (b) | Share | Δ% | |
Crop Mix | 2022/23 | 2023/24 Budget | 2023/24(1) Forecast | 2023/24 | |
(bxa) | |||||
----------------------------ha---------------------------- | % | ||||
Cotton lint | 162,243 | 187,464 | 188,730 | 29.0% | 0.7% |
1st crop | 85,823 | 90,088 | 106,715 | 16.4% | 18.5% |
2nd crop | 76,420 | 97,376 | 82,015 | 12.6% | -15.8% |
Soybean (Commercial + Seed) | 346,941 | 336,770 | 320,009 | 49.1% | -5.0% |
Corn 2nd crop | 137,585 | 103,436 | 96,661 | 14.8% | -6.5% |
Other cropst | 27,615 | 46,733 | 46,316 | 7.1% | -0.9% |
Total Area | 674,384 | 674,403 | 651,716 | 100.0% | -3.4% |
- Weather factors may affect the planted area forecast.
COTTON | SOYBEAN | CORN |
100% | 60.1% | 75.3% |
PLANTED | HARVESTED | PLANTED |
Δ | Δ | Δ |
2023/24 x 2022/23 | ||
2023/24 x 2022/23 | 2023/24 x 2022/23 | |
+16%* | ||
-8%* | -30%* | |
*Variation of planted area 2023/24 x 2022/23 crop year |
Planting and Harvesting Schedule
Yields for 2023/24 crop year Budget x 2023/24 Crop year Forecast
Crops | Material Fact 12/04/2023 | Forecast 2023/24 | Δ% |
Cotton 1st crop | 2,019 | 2,020 | - |
Cotton 2nd crop | 1,863 | 1,869 | 0.3% |
Cottonseed (cottonseed + cotton seed) | 2,409 | 2,410 | - |
Soybeans (comercial + seed) | 3,667 | 3,432 | 13.1% |
Corn 2nd crop | 7,588 | 7,580 | -0.1% |
Production Cost - R$/hectare - 2022/23 x 2023/24 crop year
Crops | 2022/23 Budget | 4Q23 2023/24-Budget(1) | Δ% |
Cotton 1st crop | 15,163 | 13,205 | -12.9% |
Cotton 2nd crop | 13,677 | 11,906 | -12.9% |
Soybeans (commercial + seed) | 5,223 | 5,081 | -2.7% |
Corn 2nd crop | 4,867 | 4,303 | -11.6% |
Total Average Cost | 7,985(1) | 7,177(1) | -10.1% |
- Weighted by the areas of the 2023/24 crop year, to avoid changes arising from variations in the product mix.
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SUMÁRIO | |
FINANCIAL PERFORMANCE | 12 |
ESG COMMUNICATION WITH STAKEHOLDERS | 25 |
FINANCIAL TABLES | 27 |
OPERATIONAL DATA | 27 |
LAND TABLES | 27 |
PRODUCTION UNITS AND HEADQUARTERS LOCATION | 28 |
EXHIBIT 1 - BALANCE SHEET: ASSETS | 29 |
EXHIBIT 2 - BALANCE SHEET: LIABILITIES | 30 |
EXHIBIT 3 - INCOME STATEMENT | 31 |
EXHIBIT 4 - CASH FLOW STATEMENT | 32 |
4
MANAGEMENT'S LETTER TO OUR SHAREHOLDERS AND STAKEHOLDERS
The year 2023 was marked by high yields and healthy results.
Operational Scenario - 2022/23 Crop Year
In the 2022/23 crop year, we delivered excellent yields despite the 20% reduction in the use of fertilizers (potassium chloride and phosphates). We maintained great soybean yields (close to a record), while the production of second-crop cotton and second-crop corn were new Company records that surpassed the national average!
We achieved soybean yield of 3,904 kg/ha. 2023's yield was 1.8% lower than the previous year's record yield and in line with initial budget. In relation to the national average, we outperformed it by 11.3% (CONAB, February/2024).
The yield of first-crop cotton lint came to 2,000 kg per hectare, 3.8% above the initial projection, 18.9% higher than in the previous crop year. Second-crop cotton lint ended the period with a yield of 2,037 kg/ha of cotton lint, increasing 10.8% from the budget and 56.1% higher than 2021/22 crop year. In relation to the national average (CONAB - February/2024), the average yield of our first-crop and second-crop cotton lint was 5.8% higher.
Second-crop corn harvest achieved yield of 7,708 kg/ha, was record. In relation to the national average, yield was 29.5% higher (CONAB February/2024).
Costs per hectare achieved for the 2022/23 crop year registered an average decrease in Brazilian real of 0.9% from budget, mainly due to the decline in the price of soybean bag in leases and the reduction of the application of inputs due to the higher use of new localized application technologies. In addition, the higher yields had a positive impact on unit cost R$/kg, which decreased 2.4% for first-crop cotton, 6.5% for second- crop cotton, 4.3% for soybean and 2.3% for second-crop corn.
In 2023, the seeds segment delivered EBITDA of R$ 87 million, with EBITDA margin of 14.3%, a decline of 3.3
- from 2022, due to the increase of general and administrative expenses. Net Income was R$ 41.9 million, with net margin of 6.9%.
For 2024, the target is to sell 1,250,300 bags of 200,000 soybean seeds and 143,318 bags of 200,000 cotton seeds, an increase of 22.5% and 10.3% vs. 2023's achieved sales respectively.
Highlights 2023
In the financial performance of 2023, Net Revenue came to R$7.2 billion, while Net Income was R$938 million, reaching a net margin of 13%. Adjusted EBITDA was R$2.7 billion, with Adjusted EBITDA margin of 37.5% and Free Cash Generation of R$429 million. Cash generation was affected by delay cotton shipments (from cotton 2022/23 crop year, 101,000 tons were shipped in 2023, and the balance of 226,000 tons will be shipped in 2024) and by the acquisition of 12,000 ha of land from Paysandu Farm (disbursement of R$290 million in 2023). Even so, our leverage remained resilient, at 1.06x.
In April 2023, our shareholders approved the distribution of R$ 602 million, equivalent to 50% of Adjusted Net Income of the Parent Company (interest on own capital of R$ 71 million, paid in January, and dividends of R$531 million, paid in May). In addition, bonus shares were also approved, at the ratio of 10%, corresponding to one new share for ten common shares held on the base date of May 8th, 2023.
In 2023, we moved forward with our Share Buyback Programs, repurchasing in 2023 shares corresponding to 2,5% of the Company's capital stock. We also approved the cancelation of 5,2% of the Company's total capital stock. In November 2023, we approved a new buyback program, currently under way, for the acquisition of another 2% of the Company's capital stock. The Company also approved a stock split of all common shares issued by the Company, whereby one (1) common share will represent two (2) common shares.
The Management Proposal provides for the distribution of dividends corresponding to 50% of the Parent Company's net income (fiscal year 2023), i.e., R$389 million. Of this amount, R$24 million was paid as interest on own capital in January 2024, to be incorporated into the calculation of the mandatory dividends.
5
In June, we disclosed the appraisal of the land owned by the Company, conducted by the independent consulting firm Deloitte Touche Tohmatsu Ltda. The land was assessed at nearly R$11 billion, a 12% appreciation of the adjusted portfolio in relation to the previous year.
Operational Scenario - 2023/24 Crop Year
Adverse weather conditions affected the beginning of 2023/24 crop year, due to the El Niño phenomenon. The Brazilian Cerrado region saw precipitation below the historical average and high temperatures. These weather conditions were not adequate for the development of soybean, especially in western Mato Grosso, the region worst affected by drought. As a result, planted area needed to be adjusted for optimizing the production potential of crops and financial results.
The drought in the state of Mato Grosso adversely affected soybean crops but did not have the same effect on the other regions with high production potential, demonstrating the resilience of the Company's portfolio, thanks to its geographic diversification. Cotton crops have a high production potential, as precipitation normalized in the Cerrado region in mid-December, benefiting not only cotton, and corn as well, whose planting was concluded in the beginning of March.
Costs per hectare in Brazilian Real budgeted for the 2023/24 crop year decreased 10% on average from the 2022/23 crop year, reflecting mainly the lower prices of our main inputs.
We advanced in our 23/24 hedge position: 70.7% for soybean, considering all commitments, 37.4% for corn, and increased our hedge position for cotton, with the recent market response, which came to 40%. At the same time, we benefited from the appreciation of the U.S. dollar by entering into forward contracts for the crops (details on table 35).
Acquisition of Inputs 2024/25 Crop Year
For the 2024/25 crop year, for which planting will begin in September 2024, we already began purchases, and hedging a part of fertilizer demand (87% of the demand for phosphate fertilizers, 82% of potassium chloride and 16% of nitrogen), seizing attractive market opportunities.
ESG
We certified two of our farms under the regenerative agricultural practices program (Regenagri), we became the largest area certified in cotton and soy from the Americas. In addition, SLC Agrícola obtained the A- rating in the Climate Change program of CDP Latin America, joining the Climate Change Leadership group. In addition, we rose 18 positions in the Corporate Sustainability Index (ISE B3), which tracks the performance of shares issued by companies that stand out for their commitment to corporate sustainability. In 2023, SLC Agrícola's stock completed 16 years on the B3 and we are currently present in three of B3's sustainability indexes: ISE, ICO2 and IGPTW.
We thank our shareholders, employees and stakeholders yet another year of healthy results!
The Management.
6
MARKET OUTLOOK
Click here to download the market outlook pdf
OPERATIONAL PERFORMANCE 2022/23 CROP YEAR
The fourth quarter of 2023 was marked by the cotton processing and beginning of shipments.
Planted Area
Below is an update on the planted area for the 2022/23 crop year:
Table 1 - Planted Area by Crop 2021/22 vs. 2022/23 crop years
Planted Area | Planted Area | Share | ||
Crop Mix | 2021/22 | 2022/23 | 2022/23 | Δ% |
------------------ha------------------ | % | |||
Cotton lint | 176,985 | 162,243 | 24.1% | -8.3% |
Cotton lint 1st crop | 86,357 | 85,823 | 12.7% | -0.6% |
Cotton lint 2nd crop | 90,628 | 76,420 | 11.3% | -15.7% |
Soybean (Commercial + Seed) | 334,891 | 346,941 | 51.4% | 3.6% |
Corn 2nd crop | 121,633 | 137,585 | 20.4% | 13.1% |
Other Crops (1) | 38,437 | 27,615 | 4.1% | -28.2% |
Total Area | 671,946 | 674,384 | 100.0% | 0.4% |
- Other Crops (Brachiaria Seed 6,314.86 ha, Stylosanthes Seed 716.02 ha, Beans ,1.430.58 ha, Sesame 2.494,26 ha, MIllet Seed 8,786.01 ha, Corn 1st crop 1,133.88 ha, Corn Seed 667.46 ha, Cattle Herd 3,962.42 ha, Sorghum 1,041.77 ha and Wheat 1,067.74 ha) total 27,615 ha.
Yields
Table 2 - Projected Yields 2022/23 crop year
Yield (kg/ha) | 2021/22 Crop Year | 2022/23 Crop Year | 2022/23 Crop Year | ∆% | ∆% |
Achieved (a) | Budget (b) | Achieved (c) | (c) x (a) | (c) x (b) | |
Cotton lint 1st crop | 1,682 | 1,927 | 2,000 | 18.9% | 3.8% |
Cotton lint 2nd crop | 1,305 | 1,839 | 2,037 | 56.1% | 10.8% |
Cottonseed | 1,833 | 2,372 | 2,491 | 35.9% | 5.0% |
Soybean (Commercial + Seed) | 3,974 | 3,918 | 3,904 | -1.8% | -0.4% |
Corn 2nd crop | 6,303 | 7,685 | 7,708 | 22.3% | 0.3% |
Commercial Soybean
We ended soybean harvest in late April, with yield of 3,904 kg/ha, 1.8% lower than the previous year's record yield, and 0.4% below initial forecast. However, we outperformed the national average by 11.3% (CONAB, February/2024).
Soybean Seed
In 2023, sales volume combined with domestic consumption totaled 1,020,575 bags of soybean seeds, down 8.9% from our initial estimate, due to lower sales in the vertical channel and direct sales to small and midsized producers. Today, we produce soybean seed in five states (Mato Grosso, Goiás, Tocantins, MinasGerais and Bahia) and remain fully focused on quality and meeting our clients' needs.
First-Crop Cotton Lint
The final yield attained was 2,000 kg/ha, a new record, 3.8% above the initial projection, 18.9% higher than in the previous crop year.
Second-Crop Cotton Lint
Second-crop cotton lint ended the period with a yield of 2,037 kg/ha of cotton lint, a new record, increasing 10.8% from the budget, 56.1% from 2021/22 crop year.
Compared to the national average (CONAB February/2024), we were higher by 5.8%, average for the 1st and 2nd crops.
Cotton Seed
In 2023, sales volume combined with domestic consumption totaled 129,950 bags of soybean seeds, up 7.0% from our initial estimate.
Second-Crop Corn
7
The yield of second-crop corn was 7,708 kg/ha, a new record, 22.3% higher than in the 2021/22 crop year and 0.3% higher than the initial budget. In relation to the national average (CONAB, February /2024), the yield was 29.5% higher.
Production Costs 2022/23 Crop Year
Table 3 - Achieved Costs - 2022/23 Crop Year
Average | Average | ||||
% | Cotton | Soybean | Corn | Achieved | Achieved |
2022/23 | 2021/22 | ||||
Variable Costs | 82.8 | 74.8 | 81.5 | 80.4 | 79.6 |
Seeds | 8.5 | 14.2 | 18.4 | 11.4 | 12.7 |
Fertilizers | 24.2 | 15.5 | 34.0 | 23.0 | 25.4 |
Chemicals | 24.7 | 19.4 | 13.3 | 21.7 | 18.8 |
Air Spraying | 1.9 | 1.7 | 1.5 | 1.7 | 1.3 |
Fuels and Lubricants | 3.1 | 5.3 | 3.8 | 3.8 | 4.6 |
Labor | 0.7 | 0.7 | 0.5 | 0.7 | 0.8 |
Ginning | 9.0 | 3.8 | 2.4 | 6.7 | 4.8 |
Maintenance | 4.9 | 4.8 | 3.2 | 4.6 | 4.1 |
Others | 5.8 | 9.5 | 4.4 | 6.7 | 7.1 |
Fixed Costs | 17.2 | 25.2 | 18.5 | 19.6 | 20.4 |
Labor | 6.2 | 8.1 | 6.1 | 6.7 | 7.2 |
Depreciations and amortizations | 3.6 | 5.8 | 3.8 | 4.3 | 4.4 |
Right-of-Use depreciation - Leasing | 4.7 | 7.6 | 6.0 | 5.7 | 6.2 |
Others | 2.7 | 3.6 | 2.6 | 2.9 | 2.6 |
Table 4 - Production Cost in R$/hectare, 2022/23 Crop Year
Total (R$/ha) | Achieved 2021/22 | Budget 2022/23 | Achieved 2022/23 | ∆% | ∆% |
(a) | (b) | (c) | (c x b) | (c x a) | |
Cotton lint 1st crop | 12,580 | 15,163 | 15,357 | 1.3% | 22.1% |
Cotton lint 2nd crop | 10,191 | 13,677 | 14,161 | 3.5% | 39.0% |
Soybean(3) | 4,283 | 5,377 | 5,128 | -4.6% | 19.7% |
Corn 2nd crop | 3,711 | 4,867 | 4,767 | -2.1% | 28.5% |
Total average cost | 6,425 | 7,547 | 7,476 | -0.9% | 16.4% |
Table 5 - Unitary Cost 2022/23 Crop Year
Budget Yield | Budget Cost | Budget Cost | Achieved | Achieved | Achieved | ||
Cost | Cost | ∆% | |||||
(Kg/ha) | (R$/ha) | (R$/kg) | Yield (Kg/ha) | ||||
(R$/kg) | R$/kg | b x a | |||||
2022/23 | 2022/23 | 2022/23 (a) | 2022/23 | ||||
2022/23 | 2022/23(b) | ||||||
Cotton lint 1st crop | 1,927 | 15,163 | 7,87 | 2,000 | 15,357 | 7,68 | -2.4% |
Cotton lint 2nd crop | 1,839 | 13,677 | 7,44 | 2,037 | 14,161 | 6,95 | -6.5% |
Soybean (commercial+seed) | 3,918 | 5,377 | 1,37 | 3,904 | 5,128 | 1,31 | -4.3% |
Corn 2nd crop | 7,685 | 4,867 | 0,63 | 7,708 | 4,767 | 0,62 | -2.3% |
Actual costs per hectare in the 2022/23 crop year declined on average 0.9% in Brazilian real compared to budgeted costs for the crop year. Such reduction reflected savings due to lower amounts of Depreciation of Right of Use - Leases, thanks to the decline in soybean prices and mainly the reduction in the application of inputs due to the greater use of new technologies.
8
OPERATIONAL PERFORMANCE 2023/24 CROP YEAR
The fourth quarter of 2023 was marked by the planting and beginning of harvest of soybean and first-crop planting.
Planted Area
On December 4th, 2023, the Company disclosed a Material Fact notice on the adjustment to its planted area due to adverse weather conditions that affected the start of the crop year. Compared to last report, we made some changes during soybean planting that affected the planted areas for first- and second-crop cotton, second-crop corn and other crops. These changes were: Reduction of 16,761 hectares of soybean, area initially projected for planting of soybean and second-crop cotton, but where only first-crop cotton was planted, since it has a higher margin, considering the planting window. Reduction of 6,775 hectares of second-crop corn due to the replanting of 19,000 hectares of soybean.
Table 6 - Planted Area by Crop 2022/23 vs. 2023/24 crop years -budget x forecast
Planted Area | Planted Area (a) | Planted Area (b) | Share | Δ% | |
Crop Mix | 2022/23 | 2023/24 Budget | 2023/24(1) Forecast | 2023/24 | |
(b x a) | |||||
---------------------------- | ha ---------------------------- | % | |||
Cotton lint | 162,243 | 187,464 | 188,730 | 29.0% | 0.7% |
Cotton lint 1st crop | 85,823 | 90,088 | 106,715 | 16.4% | 18.5% |
Cotton lint 2nd crop | 76,420 | 97,376 | 82,015 | 12.6% | -15.8% |
Soybean (Commercial + Seed) | 346,941 | 336,770 | 320,009 | 49.1% | -5.0% |
Corn 2nd crop | 137,585 | 103,436 | 96,661 | 14.8% | -6.5% |
Other Crops (2) | 27,615 | 46,733 | 46,316 | 7.1% | -0.9% |
Total Area | 674,384 | 674,403 | 651,716 | 100.0% | -3.4% |
- Weather factors may affect the planted area forecast.
- Other Crops (First-crop corn 266 ha, Corn seed 767 ha, Wheat 9,306 ha, Mung bean 3,482 ha, Livestock 3,606 ha, Sorghum 262 ha, Sesame 2,624 ha, Brachiaria seed 12,042 ha, Buckwheat 519 ha, Pearl millet seed 6,522 ha, Crotalaria 1,859 ha, Forage Radish Seed 5,062 ha) Total 46,316 hectares.
Yields
Table 7 - Budget Yields 2023/24 crop year
Yield (kg/ha) | 2022/23 Crop Year | 2023/24 Crop Year | 2023/24 Crop Year | ∆% | ∆% |
Achieved (a) | Budget (b) | Forecast (c) | (c) x (a) | (c) x (b) | |
Cotton lint 1st crop | 2,000 | 2,020 | 2,020 | 1.0% | 0.0% |
Cotton lint 2nd crop | 2,037 | 1,869 | 1,869 | -8.2% | 0.0% |
Cottonseed | 2,491 | 2,410 | 2,410 | -3.3% | 0.0% |
Soybean (Commercial + Seed) | 3,904 | 3,948 | 3,432 | -12.1% | -13.1% |
Corn 2nd crop | 7,708 | 7,580 | 7,580 | -1.7% | 0.0% |
Commercial Soybean
The 2023/24 crop year was characterized by the El Niño phenomenon, which affected mainly western Mato Grosso state, with a sharp reduction in precipitation in October, November and December, as shown in the figure below.
Figure 1 - Monthly distribution of precipitation in relation to the historical average of Mato Grosso farms.
Mato Grosso State - SLC
Precipitation (mm)
September | October | Novembe | ||||||||
December | ||||||||||
Historical | r | 2023/24 | ||||||||
Source: SLC Agrícola S.A. internal data
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SLC Agrícola SA published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 22:49:13 UTC.