São Paulo – Over 700 million Brazilian reals (US$ 307 million) should be made available for turning capital of cooperatives, through the Cooperative Development Program for Value Added Agricultural Production (Prodecoop). Expansion of the funds was approved yesterday (29), by the National Monetary Council (CMN).
In a press statement disclosed by the Ministry of Agriculture, Livestock and Supply, the CMN also approved the increase of Prodecoop turning capital credit limits not associated to investment from 10 million reals (US$ 4.4 million) to 20 million reals (US$ 8.8 million). The measure should guarantee further credit to support the composing and loading of stocks as well as the trading of the 2008/2009 crop, which should take place up to May.
The Monetary Council also authorized the elevation of the credit limit in the Program for Modernisation of Agriculture and Conservation of Natural Resources (Moderagro), from 250,000 reals (US$ 110,000) to 500,000 reals (US$ 220,000), per beneficiary. The measure is valid for contracts made by farmers in the cities of the state of Santa Catarina, in which a state of emergency has been declared due to excessive rains.
Apart from that, the expansion of the Special Line of Credit for dairy was also approved, from 15 million reals (US$ 6.6 million) to 20 million reals (US$ 8.8 million). There has also been expansion of the limit for operations with resources from the Federal Government Loans (EGF) from 10 million reals (US$ 4.4 million) to 20 million reals (US$ 8.8 million).
With the measure, agro industries and farmers should be able to count on double the volume of credit for product storage in the period between crops, to avoid the sale of the product during the crop period, when prices are lower.
*Translated by Mark Ament