May 27, 2008

Brazil to ensure sufficient credit for farmers to alleviate world food shortage

Brazilian farmers will have access to plenty of credit in the 2008-09 soy and grain season, Agriculture Minister Reinhold Stephanes told the local Estado newswire on Monday (May 27, 2008).

Stephanes did not say how much the government would set aside for the new 2008-09 crop, but noted that the government was aware of global food shortages and willing to do its part to increase supply.

"The first conversations with finance minister, Guido Mantega, and president Luiz Inacio Lula da Silva suggested ... that the best way for Brazil to contribute to lowering international food prices is to increase our output," Stephanes said.

Food commodities have been rising steadily all year given tight supply in most crops.

Planting of soy and corn, Brazil's top two crops, begins in October.

Brazil is the world's No. 2 soy producer behind the US and is the world's largest beef exporter.