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Output Markets
The output marketing system in Western Bahia is in place and is
highly functional. It is considered open and competitive.
Bunge and Cargill have large
soybean crushing plants and many buying stations in Western Bahia. With a
current capacity of several thousand tons per day, the Bunge plant near Luis Eduardo
Magalhães is one of the largest soybean crushing facilities in
South America.
Bunge claims to control about 75 percent of
the soybean market via its dozen or so buying stations. Cargill also has many buying stations across the region. At harvest, most of the soybeans
move directly from the field to the Bunge and Cargill plants or buying stations.
Cotton is a new crop in Western Bahia and production in the last few years has skyrocketed. Dozens of gins are currently
operating or under construction. Many large farms have their own gins. Domestic and international buyers from major commodity and textile firms
come to the area to purchase cotton from farmers. Buyers contract for
transportation to textile mills in the northeast and south and also to ports for shipment abroad.
Corn, rice and edible beans are sold to marketing intermediaries and
commodity firm buyers that come into the area at harvest. Some of the larger
farmers transport their product and sell directly to markets in Salvador or
northeast Brazil. They use the back haul to transport fertilizer and other
inputs.
High value crops such as coffee, bananas, papaya and other fruits
are sold under a variety of arrangements.
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