Farmer's Weekly (South Africa)
Spies and satellites keep an eye on Brazilian soya bean farmers
To prevent soya bean producers in Brazil from reneging on delivery agreements, international grain merchants are using satellites and spies for surveillance, and have also employed an army of lawyers to prevent farmers from finding alternative buyers.
According to Reuters, billions of dollars and the sanctity of crop contracts are at stake for the world’s top soya bean exporter, which accounted for about 50% of global trade.
Demand for soya bean from Brazil’s US$45 billion (about R651 billion) a year industry has risen to an eight-year high. Exports to China, in particular, have soared as that country rebuilds its pig herd after it was devastated by African swine fever.
If farmers deliver, traders make the profits. However, if farmers are able to break these deals, they could double their income, as prices have soared
71% since May 2020, according to Reuters.
Nancy Franco, a lawyer representing all major trading companies, had overseen dozens of lawsuits against farmers on contracts worth millions of dollars after growers threatened to renege on contracts, or asked for higher prices.
Farmers, on the other hand, have accused buyers of harassing them and violating their privacy to ensure soya bean deliveries.