Brazil’s Drought Made Corn and Soy Harvest Fall

The Brazilian government statistical bureau,  IBGE, reports that the 2004 grain harvest in Brazil reached 120.5 million tons, down 3.65%, compared to 2003.

The IBGE says that the main reason for the smaller harvest was the weather – especially a severe drought in southern Brazil.


The biggest drop in production was in corn, down 13.5%. Soy was down 4.6%, even though the area planted had actually risen over 16%.


The IBGE explains that with corn and soy accounting for over three-fourths of Brazil grain production in 2004, the drop was inevitable.


However, there were bright spots in the 2004 harvest. Cotton production rose over 72%, and there was a sharp rise in production of castor-oil plant, up almost 65%.


The jump in castor-oil plant is explained by incentives the government is providing for its cultivation as it will be used as an additive in biodiesel.


ABr

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