Canada aims to double soybean production by 2027

Canadian soybean producers could double production in 11 years to 13 million mt, according to industry association Soy Canada.

The association published its long-term strategy – 10 million acres of opportunity – this week, including plans to almost double the acreage planted from 5.4 million acres in 2016 to 10 million acres by 2027.

That would lead to production of 13 million mt from 6.5 million mt, with exports growing from 4.5 million mt to 10.5 million mt over the same period.

“New short-season varieties have expanded soybean acreage to new regions of Ontario, Quebec and Atlantic Canada, and significantly across Western Canada. These new varieties have caused Canadian soybean production to double in the last 10 years,” the report said.

“There is no doubt that more farmers will become soybean growers in the decade ahead. The profitability of the crop is strong. In fact, in 2017, the Manitoba Government expects marginal returns (gross revenue minus operating and fixed costs) for soybeans to be almost $100 per acre making it one of the most profitable crops a farmer can grow,” it added.

Nevertheless, Canada would remain a small player on the global scale, with both Brazil and the US producing over 110 million mt a year for this year and last.

The report comes as soybean global production figures look set to plateau after years of growth.

Global production is expected to be around 349 million mt, according to the International Grain Council, down 1 million mt from a year earlier.

The La Nina weather phenomenon is set to hit Argentinian supplies while boosting Brazil's.