Field to have new record surplus
Gazeta Mercantil - 01/16/2008
Because of the increase of the prices of commodities and the increased demand in the international market, Minister of Agriculture Reinhold Stephanes believes the Brazilian agricultural sector may present a new record in the trade surplus this year, notwithstanding the depreciation of the dollar in relation to the Real. He foresees a US$ 60 billion surplus for 2008, nearly US$ 10 billion more than the new figure of US$ 49.7 billion achieved last year. According to the minister, a great part of the contribution will come from the exportation of meat - mainly of chicken - which, for the first time, may exceed the shipping of soy. "The sales of soy will continue high, but the pace of growth of meat, mainly chicken, which may be greater than the exportation of beef, may be bigger", due to the increase of the world population, estimates Stephanes. The Ministry's International Relations Secretary Célio Porto believes that, wasn't for the embargo to the Brazilian meat caused by some focus of FMD in 2005, the shipping would have already exceeded that of soy since last year. The minister added that the government has made serious efforts in order to lift the still existing restrictions, mainly from the European Union. The government is also trying to open new markets for pork, such as the United States. The strong trade surplus of the agriculture in 2007, according to Stephanes, represents the strength of the countryside on the Brazilian economy. The agricultural surplus was almost US$ 10 billion bigger than the balance achieved in Brazil's entire trade balance of US$ 40 billion, including all sectors. "It is the agricultural sector that covers the deficit of the other sectors in the trade balance", complemented the minister. The prices of the agricultural commodities, which tend to continue high this year, may be responsible for the strong surplus of the trade balance of the agricultural sector in 2008, according to Stephanes. The minister also believes that great part of the impact of the increase of the prices of the commodities occurred during 2007 may only have effect on the market this year, since the prices started going up after August and some producers kept their products waiting for an even better setting.