Brazil the number two soy exporter in the world, is now aiming to become the "granary of the world."

In order to realise that goal, the government would be investing a total of US$49 billion. Part of the process would include boosting the 2007-08 harvest by five percent from 144.3 million tonnes

Brazil's President Luiz Inacio Lula da Silva, who announced the plan, said world food shortages will open up opportunities for Brazil but also for other South American and African countries.

He added that to help those countries increase their agricultural production, Brazil has already set up offices of its agricultural research service Embrapa in countries such as Ghana and Venezuela.

Brazil's last harvest was 8.4 percent larger than the one for the 2006-2007 season, which had been the largest in the country's history.

Brazil still has large reserves of untapped arable land, giving it vast potential in raising food production.