Ken Ash, director of the OECD Trade and Agriculture Department, was lecturing today at the Agricultural Outlook Forum, in Foz do Iguacú, state of Paraná. He mostly criticized the agricultural policy of several countries, including the US. He think that Americans should get rid of individual subsidies to farmers. “This policy has proven that is not effective. It would be a lot smarter to allocate that money in technology development”, said Ash.
Ash also thinks that the Brazilian policy is in the wrong track. “The Brazilian policy has expanded credit over and over. I don’t think Brazilian farmers need more credit. It would be better if the government puts money at Embrapa (Brazil’s National Research Company) and logistics”, explained. The OECD director did not forget of Europe, saying that it need to be more “scientific” when it refers to biotechnology and more open. However, he was very optimistic about the future for all countries. “There is a market screaming for more supply and tariffs everywhere could be lowered”, advocated Ash.
The monthly food inflation in Latin America has the lowest level in two years with 0.1 percent in June, according to the United Nations Organization for Food and Agriculture. This is the first time that food prices decreased in over a year. The general inflation in the continent was 0.5 percent.
Costa Rica, Ecuador, Mexico, Dominica Republic and Uruguay had the most significant drop on food prices. Argentina, on the other hand, has shown the second highest increase with more than one percent inflation in the month on grocery stores. Venezuela had the average food prices increased by six percent.
Fao also says that Brazil and Colombia had no significant change on food prices in the month. Prior to June, Brazil took several step to fight food inflation such as lowering importing tariff and decreasing other sorts of production costs.
Marfrig’s beef division will be divided into two major offices, the Brazilian meat giant has announced. The production unities in Chile, Uruguay, Argentina, and the state of Rio Grande do Sul (Brazil) will be under the supervision of Martin Secco, in Montevideo. Secco has 25 years of experience in the beef sector. He is responsible for Marfrig’s Uruguayan and Chilean operations since 2007. The executive will report directly to Sergio Rial until January 1st of 2014. Then, Marcos Molina will replace as president of the board of directors. The Board of Directors is in São Paulo, Brazil.
Corn production rises in Central America. Photo: costaricaazul.com
FAO has reported today that Latin America and the Caribbean will produce nearly 156 million tons of cereals in the 2012/2013 season. According to the UN arm, an increase in 20 million tons production of secondary cereals, such as corn and sorghum, have compensated the reductions of wheat and rice. Nearly 36 million tons of the total cereal output will come from Brazil.
Weather conditions have not favor recently corn crops in Argentina and Paraguay, but have helped in Bolívia. The report also says that there is a recovery in Central America and México. Along, Central America, Mexico, and the Caribbean will produce 41 million tons of corn. In Mexico, however, there is a seven percent reduction of the planted area.
Posted in Argentina, Brazil, Chile, Corn, Crop conditions, Paraguay, Projections, Rice, Soybeans, Uruguay, Wheat
Basf executives aim to South America as an strategic market
Basf announced last Friday that it will invest nearly 50 million euro mostly expanding its Chemical Complex in Guarantinguetá, state of São Paulo, in Brazil. The German company intends to increase local production and the capacity of development of products. In Chile, there are also new investments. Basf is set to innaugurate a new biologicals factory in the Andean country and to form a new division called Functional Crop Care.
“This initiative will strenghten local production and will continue Basf investments in South America. It reinforces our committment to accelerate the growth of the business in the region through innovation and technology”, said Markus Heldt, president of Basf’s Crop Protection Division. According to Heldt, when the expansion in the Brazil is done, Basf will export more chemicals from that factory to other countries. “We hope to balance the company’s productive capacity in the world”, concluded Heldt.
The factory to be expanded in Brazil produces the Boscalid fungicide, which is designed to combat diseases on coffee, cereals, and fruits. The forecast to finish building the factory is the end of this year. The Guaratinguetá facilities will also have a second factory, made to produce Heat, the herbice to controle weeds.