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Friday, February 28th 2003 - 21:00 UTC
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Headlines: Mixed inflation readings in Brazil; Record year for Brazilian agriculture; Anthrax case in Chile; Small farmers unite to export organic.

Mixed inflation readings in Brazil

Market inflation in Brazil is showing mixed results according to the latest figures released by the Brazilian Central Bank working with the Getulio Vargas Foundation. The overall market prices index, (that include wholesale, retail and construction) is expected to reach 2,28% in February, compared to 2,33% in January, with an accumulated 4,67% in the first two months of 2003 and a twelve months inflation of 30,60%. However financial institutions were expecting an overall market prices index of 1,76% in February, with an annual projection of 15,42%. Regarding wholesale prices that represent 60% of the Overall Market Index, the increase was actually 2,64%, compared to 2,55% in January. Retail prices, that make up 30% of the OMI, dropped to 1,62% in February after reaching 2,03% in January, while Construction prices rose 1,60% after increasing 1,45% in the first month of 2003.

Record year for Brazilian agriculture

This year's Brazilian grain harvest is expected to increase 10% and top 2001's record, government forecasts released Thursday revealed. Agricultural production in 2003 should exceed the 97.12 million tons harvested last year, as well as the 98.54 million tons produced in 2001 - the biggest annual harvest in Brazilian history. The estimates were published Thursday by the Brazilian Geography and Statistical Institute (IBGE) and include figures on cereals, legumes and oil-producing grains, mainly soybeans. The optimistic report is based in part on "climatic conditions in the top grain-producing parts of the country" and a 3% increase in planted areas, which now exceed 34 million hectares (84 million acres), the IBGE said. Soybean output, which accounts for one-third of the total grain harvest, should increase 16.6% this year over 2002 "As a result of favourable international prices, domestic soybean production is expected to jump from 42 million tons in 2002 to 49 million tons in 2003," the report said. Brazil trails only the United States among the world's leading soybean producers. Bumper cotton, corn and wheat crops are also expected, while the rice harvest should remain stable, the IBGE said. However if Argentina and Paraguay's production are added, Mercosur is the world leading soybean producer.

Anthrax case in Chile

The first case in years of anthrax in Chile was reported this week in the Tomé Commune, near the city of Concepción in the VIII Region of the country. According to an official release from Chile's sanitary Agriculture and Livestock Service Bacilus Antracis was confirmed in the autopsy of a dead horse. Anthrax attacks both animals and man, but while in beasts in most cases, it causes sudden death in humans it's a long infectious process that can also be lethal with a general septicaemia condition. Chilean sanitary authorities indicated that Anthrax dead animals appear swollen with dark blood oozing from the body's orifices, (mouth, nose, ears, anus, etc.) and must be immediately reported. The carcass must be isolated from all contact and not touched under any circumstances. Those animals that are finally confirmed as infected with the deadly bacteria must be buried several meters deep and covered in lime. The rest of the herd or flock and animals that could have been in contact must be vaccinated as soon as possible against the highly infectious disease. Another disease with similar symptoms, particularly when animals begin urinating blood is the Infectious Hemoglobinuria that lodges in cattle's liver and must also be reported followed by vaccination. In the Tomé Commune 400 animals, under the coordination of sanitary authorities, were vaccinated against both Anthrax and the Infectious Hemoglobinuria after two cases of this last disease were detected.

Small farmers unite to export organic

Argentine small farmers pushed to marginal lands by the powerful agro-business companies concentrated in the country' best soils have joined efforts and began exporting organic beef, mainly to Germany, Britain and Italy. The undertaking so far involves 200 small and medium farmers in the ACA-Beef program, working under a cooperative system, who toil land that has not been absorbed for intensive production. "These areas are basically marginal and therefore excellent for organic production", explained Nicolás Lotrechiano, Manager of the ACA-Beef program. Mr. Lotrechiano admitted that even when the idea of the program actually started in 1997, overseas sales are limited to a few 11 tons containers, since the cooperative also has an annual 150 tons quota of special Hilton cuts, (prime boneless fresh beef). "European clients are willing to pay an additional 20% for organic beef, but we must also remember that only 14% of the carcass can be marketed under those prime demand conditions", said Mr. Lotrechiano. However the program works on the basis of keeping the quality essence of Argentine beef that "is determined by British breeds, Aberdeen, Hereford, Shorthorn and crosses (with a minimum 25% British blood)". "This is a basic requisite plus an ongoing monitoring of the production process because we have to ensure a final product that is homogeneous and consistent with quality standards", indicated Mr. Lotrechiano recalling that in a recent trade forum sponsored by the German embassy in Buenos Aires, German clients indicated that "sometimes we receive excellent beef shipments, but other times no".

Categories: Mercosur.

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