Brazil’s Minimum Price for Beans Spurs Farmers

Bean plantation in Brazil The minimum price stipulated by the government for the price of beans should generate an "expressive" increase in the area cultivated by the product. This is the estimate of National Food Supply Company (Conab) analyst João Figueiredo Ruas.

The value guaranteed to farmers for each 60-kilogram bag should rise from 47 Brazilian reais (US$ 29) in the 2007/08 crop to 80 reais (US$ 50) in the crop to begin now. If the market is paying less than that, the government should buy part of the produce.

Currently, the price of the grain is at 66 reais (US$ 40), well below the average price paid to Brazilian producers, around 135 reais (US$ 84), according to the region.

However, as it is a high-risk culture, it is necessary for the producer to receive enough for the three cycles of cultivation to be worthwhile. "With the new minimum price, income to producers is guaranteed," stated Ruas.

The director of Stock Management at Conab, Rogério Colombini, stressed the importance of stimulating cultivation of a product that contributes to Brazilian food safety.

"The government wants bean production to rise as the product weighs heavily in the cost of Brazilian feeding and, consequently, in the index of inflation."

In the 2007/09 crop, which is ending, the country should reach production of 3.54 million tons and consume 3.4 million. Despite balanced, the equitation is risky.

"It seems like we have a surplus, but we must wait for the end of the crop," said Ruas. According to him, there is news of a potential crop reduction in the Northeast, due to rains that have hit the region.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

First Latin-American Nuclear Submarine to Be Built by Brazil and Argentina

The Brazilian government says that Brazil will start working jointly with Argentina in the ...

Brazil: Lula’s Global Fan Club Is Thinning

By helping form a new organization of developing countries—the so-called G-22—Brazil has managed to ...

Recasting the US-Brazil Relationship in Light of Brazil’s Rising Power

The financial crisis of 2008 began with the failure of major financial institutions in ...

Despite Fears, Industrial Production Grows for the Fourth Month in a Row in Brazil

Industrial production in Brazil grew 1.6% in June, in comparison with May. This was ...

Brazil’s Brasil Telecom Talks About Banner Year and 2006 Plans

Brazilian telecommunication company Brasil Telecom Participações presented the firm’s business plan for 2006 to ...

Bolivia’s Oil Nationalization Can’t Stop Brazil from Reaching Record High

Latin American stocks bounced higher, after a long holiday weekend. Monday, May 1st, Brazilian, ...

The Time Has Come to End Lula’s Monarchy in Brazil

The downpour of odd government decisions,  apparently meaningless presidential phrases and so much propaganda perhaps ...

30,000 Brazilian policemen were in force on the streets

30,000 Policemen in Megaoperation Across Brazil Nab Over 2,000 Crooks

In Brazil's largest police operation ever against crime more than 2,000 criminals have been ...