São Paulo – The Brazilian minister of Agriculture, Wagner Rossi, stated on Thursday (26th) that the 2011-2012 Crop Plan will have 107 billion reals (US$ 65.6 billion) available for financing. According to him, the new policy of support to the Brazilian agricultural sector will be announced next month and will include specific incentives to three sectors: sugar and ethanol, orange juice production and livestock.
Rossi stated that the plan is going to encourage the recuperation of cane fields in the country, which have lost productivity over the last few years. It will also include measures to fight the volatility of orange prices, as well as actions for renewing pastures.
According to the minister, the government intends to “provide a certain equality to products that used to be ascribed priority in the past, because they were export commodities, and products turned to domestic consumption.”
Rossi also claimed that the plan is in its final stages of preparation. It should include actions aimed at stimulating production by large and small producers. “I hope it will contribute even further to the great performance of agribusiness, of family farming, of food farming and of animal husbandry.”
The minister also said that he is going to discuss, with representatives of G20 member countries, the growing relation between agriculture and the financial market. According to him, this relation may be harmful, giving rise to speculation on commodities prices and raising the price of food.
Rossi said that the discussion will take place at a meeting in Paris next month. All of the G20 Agriculture ministers should attend.
He said Brazil already has clear-cut positions on the matter. According to the minister, the country is against regulation of agricultural products prices, however it is favourable to limiting the influence of the financial market on the sector.
“We do not oppose a certain degree of regulation for the relation between production and the financial market,” explained the minister. “This relation is important in order for us to set guarantees, future contracts etc. however, when it reaches the level of speculation on commodities, it tends to drive food prices up.”
*Translated by Gabriel Pomerancblum
