Government encourages basic foodstuffs, which have a record decline in areas – 06/28/2023 – Shuttle

One of the focuses of the 2023/24 Family Agriculture Crop Plan is the reduction of rates on credit for the production of various foodstuffs, including rice, beans, cassava, eggs and wheat.

The plan, which is again specific to the sector after four years of interruption, will allocate R$ 71.6 billion in credit for family farming. Added to other sector support programs, the volume reaches R$ 77.7 billion.

The best financing conditions for those who produce basic foodstuffs, which will have a rate of 4% per year, could increase production and is a way out for small properties. The country has turned a lot to exportable and more profitable products, such as soy.

Staple foods, however, are not exempt from various influences, ranging from the competitiveness of international prices to changes in habits.

The figures for basic foodstuffs in the country really indicate the need to recompose the production of these products. This year, rice production fell to the lowest level in 25 years, close to 10 million tons.

The area devoted to this cereal has retreated to 1.47 million hectares, far from 3.25 million 25 years ago. The increase in productivity, which rose to 6,796 kg per hectare –2,605 kg in the 1997/98 harvest — helped to supply the market.

Basic products have weighed heavily on the consumer’s pocket, and the lowest supply influences the value of the product. This is not the only reason, however. The country is not an isolated market, and external prices, when competitive, force the departure of basic products. This is the case of rice, whose exports have increased a lot.

Due to pressure from lower supply or increased exports, the increase in products affects inflation and the consumer’s pocket.

If the government really gives production conditions to small producers, the supply of food could increase, but the prices of most of them will not be very far from those of the foreign market.

On the part of the family farmer, however, more remunerative basic prices guarantee income and stability. The bill ends up at the supermarket and in the consumer’s pocket.

Cassava, another food that should be encouraged by the new government plan, currently has the smallest production area, totaling 1.24 million hectares. Two decades ago there were 2 million.

As a result, production, which was 27 million tons, dropped to 18 million. Much of the cassava area has been occupied by soybeans, and prices have skyrocketed recently. In addition to the smaller offer, Brazil is starting to discover the foreign market.

Beans have the smallest planted area since Conab (Companhia Nacional de Abastecimento) began to monitor the evolution of the product, in the 1970s. part, by increasing productivity.

The drop in the production area and in the supply of basic foodstuffs also has the component of changing consumer habits, which weighs on the producer’s decision at planting time.

Some products, however, have the opposite direction. This is the case with eggs, which will also have a lower rate on credit for production incentives. In 2022, Brazilian production reached 52.1 billion units, well above the 31.8 billion ten years ago. Consumption in this period, however, rose from 161 units to 241 per capita, according to data from ABPA (Brazilian Association of Animal Protein).

Bird flu The first case in backyard birds is starting to have an effect on Brazilian exports. Japan interrupted purchases from Espírito Santo, a state that is responsible for 0.2% of foreign sales of chicken meat in Brazil.

bird flu 2 Last year, the Japanese were the third largest importer of chicken meat from Brazil. Japan imported 420 thousand tons, 9% of what was exported by Brazil.

contrary to OMSA Brazil contests Japan’s decision to stop imports from Espírito Santo. The World Organization for Animal Health determines that member countries should not suspend trade unless the disease occurs in industrial production.

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