Brazil’s Cerrado region, or Savannah, is the next great agricultural frontier. Fields prepared
with limestone and fertilizers have morphed into cotton and soybean plantations - changes
responsible for revolutionizing Brazilians farming today. Verde’s potential potash operation is
located in this Cerrado region.
Within Minas Gerais state (where Verde's assets are located) and its adjacent states lie 60%
of Brazil's potash consumption. Paved roads and rail provide convenient access to the region’s
nearby towns; Patos de Minas, Abaeté, São Gotardo, Uberaba, Uberlandia, as well as Belo
Horizonte, Brazil’s third largest city.
Brazil has more available farmland than any other country. Of the country's more than 500 million
hectares of total potential arable land, only 50 million hectares is being used. Official Brazilian
figures put the available land somewhat lower, at 300 million hectares. Either way, it is a vast
amount. The FAO put Brazil’s spare farmland on par with the combined total of the next two
countries together (Russia and America). Many mistakenly assume the creation of farms is the
result of clear cutting of the rainforests, however, hardly any new farmland land lies in Amazonia;
the agricultural frontier is the Cerrado.
Since 1996, Brazilian farmers have increased the amount of land under cultivation by a third,
mainly in the Cerrado. Production has increased by ten times that amount. The case is quite
different from other big international farming regions, wherein the amount of land under the plough has
either been flat or falling, as is the case in Europe.