February 12, 2004

Brazil To Expect Record Grain Harvest in 2004

Brazil grain harvest, including soybeans, wheat, corn and rice, should grow about 7 percent to a record 132 million metric tons in 2004, following a massive increase plantation acreage to meet demand from China, said Jose Dimarzio, executive secretary at Brazil's Agriculture Ministry.

"Brazil is more competitive because we have more land to expand,'' Dimarzio said in a televised interview from his office in Brasilia. "That's different from the U.S. and European Union because they have a limited amount of land available.''

Dimarzio said the higher forecast shows how successful Brazilian farmers have been in adding crops that can be sold abroad, such as soybeans.

Brazilian President Luiz Inacio Lula da Silva has made boosting agriculture exports central to efforts to revive growth in South America's biggest economy. Last week, Trade Minister Luiz Furlan predicted soybean exports will rise at least 25 percent to $10 billion.

Last year, Brazil produced about 123 million metric tons of grain.

Brazil expects sales to China, which led the increase in demand for soybeans this year, will continue rising. The government estimates farmers increased the planted area for soybeans by as much as 20.7 million hectares (79,923 square miles) from 18.5 million hectares.

"Brazil has 90 million hectares to open up to farming without cutting down any rain forest,'' Dimarzio said.