Brazil Announces $49Us Billion In Agriculture Credits To Boost Production

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Monday, 07 July 2008 03:43

The Associated Press
By Michael Astor
Original Publish Date: July 2, 2008

Rio de Janeiro, Brazil - Brazil's president rolled out 78 billion reals ($49US billion) in credits Wednesday to boost agricultural production and help ease a global food crisis.

The package represents a 12 percent increase over the money earmarked for last year's harvest. It is expected to help Brazilian farmers produce 5 percent more grain this year than last year, when they had a record harvest of 143.2 million tons.

"When the world wants to eat we have to say: Come buy what Brazil has to sell," President Luiz Inacio Lula da Silva said in the southern city of Curitiba during the launch of the Agricultural Credit program 2008/2009.

Silva said 65 billion reals ($41US billion) would go to large-scale farming operations and 13 billion ($8US billion) to help family farms.

Silva's announcement comes at a time when rising food prices have caused riots in some countries.

Brazil has not faced such unrest, though it is bracing for higher inflation due to rising food and fuel costs.

Silva said Brazil's answer would be to expand production, rather than limit exports as in neighboring Argentina.

"It (the answer) is to create conditions where people want to plant," Silva said.

Brazil is already the planet's top exporter of beef, chicken, sugar, coffee and orange juice. It comes in a close second to the United States for soy exports.