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Weather, Rust and World Prices All Conspiring Against Brazil |
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Written by Newsroom
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Wednesday, 17 August 2005 |
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The output value of Brazil's agriculture and fishing sector will decline by nearly 9% this year compared with 2004, according to a report released this week.
The projection was based on data collected between January and May by the CNA agribusiness federation and the University of São Paulo.
"Both agriculture and fishing show a reduction in GDP in 2005," CNA chief economist Getúlio Pernambuco told a press conference, adding that the decline will have ripple effects across the Brazilian economy.
Farmers have seen a drop in harvests due to unfavourable weather and a massive outbreak of Asiatic rust affecting soy, Brazil's main agricultural export.
Pernambuco also blamed falling farm revenue on a decline in global prices caused by surpluses of certain agricultural commodities.
Mercopress - www.mercopress.com
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And if drought and rust are a problem....usually....this make the price of grains...go up.....not down...as it did a few weeks ago !!!
World economy is still very good ! So what will you do when there will be only a worldwide slowdown ??? Where do you expect the price of grain will be....then ???
And even worse.....what is your expectations of grains prices...if there is a slowdown...And no drought ?????
And finally please remember that Brazil is supposed to have GMO seeds resisiting rust...by 2007...or 2008 !!!!!