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Brazil Estimates 12% Bigger Harvest for 2005

The Brazilian Institute of Geography and Statistics’ (IBGE) first estimate for the 2005 agricultural harvest was announced today and indicates that production should attain 134.042 million tons, 12.32% more than the 2004 harvest.

In terms of the area already planted or to be planted with cereals, legume, and oilseed crops, the projection is that 48.436 million hectares will be cultivated, 2.27% more than the area cultivated in 2004.

The first Systematic Survey of Agricultural Production for next year shows that, despite the fall in prices on the domestic and foreign markets and the high cost of inputs, soybean production is expected to grow 28.23% in the major producing states.

“What is present in this initial outlook for soybeans in 2005 is that farmers have no alternative crops, since the prices of corn, soybeans’s chief rival, are unattractive.

“Since the characteristics of soybean sales are different (both on the world market and in future contracts), and liquidity is greater, it continues on the rise.

“Thus, the expected production for the 2005 season is on the order of 63.085 million tons, 28% more than the production obtained in 2004,” says the note released by the IBGE.

The tenth estimate of this year’s agricultural harvest, based on October’s data, revealed that production volume should amout to 119.337 million tons in 2004, 2.47% less than in 2003, when 123.632 million tons were harvested.

Agência Brasil
Translator: David Silberstein


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