October 15, 2008
Brazilian agriculture seen severely hit by any US recession
Sao Paulo state Agriculture Secretariat's Agricultural Economy Institute, or IEA, said Brazil's agricultural sector would be impacted by any US recession, reported local news service Estado Tuesday (October 14).
A slump in internal US consumption is likely to lead to a surplus of agricultural exports, which is likely to be consumed by developing countries such as India and China that have a benefit in helping the US economy, Estado reported IEA researcher Jose Goncalves as saying.
He said that many Brazilian farmers are still making planting decisions, and the financial crisis could lead to a fall in the 2008-09 planted area, Estado reported.
Brazilian farmers have been complaining about soaring fertilizer prices, and with lower prices for their crops, many are considering planting less or using less fertilizer.
Brazil is the world's No. 1 producer of sugar and coffee and the world's second-largest producer of soy.