Brazil’s Banner Crop and a US$ 85 Billion Bonanza

Orange in Brazil Brazil farmers are expected to receive a record US$ 85 billion this year riding on high commodity prices and a bigger crop. This represents a 14.4% increase over the previous year in real value, according to the latest data from the Brazilian Ministry of Agriculture and Livestock.

Booming international prices, low global reserves of grains, the increase in demand and pressure from the growing industry of bio-fuels have contributed to such an extraordinary performance said José Garcia Gasques, Planification coordinator of the Agriculture ministry.

Sugarcane, soybeans and corn make the bulk of that sum, actually 57.3%. The final numbers are based on data from the Brazilian Geography and Statistics Institute and the renowned Getúlio Vargas Foundation.

Most of Brazil's commodities are set to do better this year than in 2007 with the greatest revenue increases for rice, oranges, potatoes, coffee, beans, oilseeds, corn, pepper and soy.

Only cotton, bananas, cacao, sugar cane, tobacco, tomatoes, wheat and grapes will see a slight decline because of lower volumes of production and possibly more stable prices.

The overall grain and oilseed crop for the 2007/08 year is estimated in 139.3 million tons, which is 5.8% over 2006/07.

Mercopress

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