Brazil Anticipates Record Crop but Less Profits

Soy plantation in Brazil The Agriculture minister of Brazil, Reinhold Stephanes, anticipated a "record 2008/09 grain crop" close to 144.5 million tons which would mark a new record, and discarded that the global financial crisis would have an impact on agriculture on the short term.

Stephanes made the announcement during the presentation of the latest Brazilian Supplies company report, which is issued by his ministry. "The crop will be between 142.03 and 144.55 million tons, compared to 143 million in 2007/08," he stated, adding before the Agriculture and Supply Congressional Committee:

"In six months time, when crops will be harvested we'll have a more clear scenario about the crisis and international prices, meantime we will continue to sow and if credit is short we'll provide it."

"This administration is determined to ensure agriculture continues to expand, so the money needed for loans will be available," he noted recalling that recently the Brazilian government extended US$ 2.5 billion in credit farms.

According to the report, the area with soybeans will expand 1.3% to 2.3% (anywhere between 21.585.400 and 21.999.300 hectares) while corn and cotton will suffer reductions. Soy crop will therefore be in the range of 60.106.400 to 61.274.500 tons compared to 60.017.400 in the last season.

The report also points out that because of increased costs and difficulties to obtain credit "farmers are making a more rational use of inputs, trying to take maximum advantage of the technological equipment to keep production at levels of the last few years."

Moreover grain brokers argue that the recent devaluation of the real helps to increase the area planted with soy, but at the same time falling commodity prices is not positive.

"As in Argentina production costs have soared; many inputs such as fertilizers were acquired when prices were very high. Since then there has been a dramatic slide in grain prices which has completely modified the production equation," said Adrian Seltzer from Granar S.A. a grains broker.

Seltzer also warns that "it's possible Brazil may plant more soy, since as in Argentina it's cheaper than sowing corn, but it is also highly probable that prices won't be enough to fertilize as they should or apply sufficient fungicides as they should, so a greater area does not necessarily mean a larger crop."

Mercopress

Tags:

You May Also Like

8.3%! Brazil Hadn’t Grown That Much in 18 Years.

Thanks to some revisions by the IBGE (Instituto Brasileiro de Geografia and EstatÀ­stica – ...

Come and Get It, Says Brazil’s BNDES with a US$ 22.2 Billion Stash

The director of Planning of Brazil’s National Bank of Economic and Social Development (BNDES), Antônio ...

Putin in Brazil: Plenty of Nice Words, But Beef Ban Is Still On

On Monday, November 22, during the official visit of Russian President, Vladimir Putin, Brazilian ...

Reducing Work to 40 Hours a Week in Brazil Without Lowering Wages Is Smart and Fair

To transform the unequal and unjust structures of our society was always one of ...

Study Offers Suggestions on How to Increase Population of Brazil’s Jaguars

For people living on the Brazilian plains jaguars versus cattle is an age-old conflict. ...

Brazil Has Lowered Key Interest Rate 36% in Less than a Year

Brazil’s basic interest rate, the Selic, which, at 8.5% for the last 45 days, ...

Brazil Says FARC Guerrillas Have Base in Brazilian Territory

According to secret Federal Police reports, extracts of which were published Sunday by daily ...

Brazil Denies Charges of Orange Juice Dumping and Might Go to WTO Against US

Brazilian exports of concentrated orange juice to the United States are worth around US$ ...

A Sampling of Brazil

The second decade of the 20th Century is represented by the Picasso-influenced modern wave ...

Brazil Gets Ready for Bird Flu: 9 Million Kits of Tamiflu

Bird flu has put the world on alert and things are not different in ...