RTCastillo wrote:
Nope, doesn't work that way. Brazil is bigger land area than the US.
This is actually what's worrying the environmentalist. They'll open up more of Amazon for the bigger demand for beans. Bulldozers can make this land ready for the upcoming season.
Africa is another continent vying for agricultural development and already in strong trade ties with China.
You missed the point.
The exact outputs of each county aren't identical. I was demonstrating a principal. Of course, they each produce more than a 100 bushels per year and each sells to multiple countries. Likewise the buying countries typically buy from multiple suppliers.
The underlying commodity price is the same as the demand is the same, so there is no pressure to open up more land (at least no pressure that was any different last year).