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Brazil’s Minimum Price for Beans Spurs Farmers

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

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