October 10, 2006

Brazil's wheat production nearly halved in 2006
 

Brazil's wheat production for 2006 is expected to drop 45.1 percent from 2005 to the lowest level seen since 2000, according to a study from the Brazilian Institute of Geography and Statistics (IBGE) released on Monday (Oct 9).

Total production is expected to reach just 2.5 million tonnes.

A 25-percent reduction in wheat planted and lower investments were cited as reasons for the sharp fall.

Droughts in April and May and cold weather in August and September affected crops in Parana and Rio Grande do Sul states, which account for up to 85 percent of Brazil's wheat crop.

Brazil's wheat processing industry said the fall in wheat production would significantly increase the prices of wheat-related products next year.