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Brazil targets another record crop;Chilean pork with dioxin;
Euro-zone lowers growth estimate.

Brazil targets another record crop

Brazilian Minister of Agriculture Roberto Rodrigues announced that this season Brazil will be harvesting 120,2 million tons of grains, a 24,2% increase over 2001/2002 and another record. Mr. Rodrigues made the announcement in the Planalto Palace (Government House) next to acting president José Alencar (Mr. Lula da Silva is in Europe) emphasizing that the "spectacular and continuous results" are a credit to the "professionalism and investment-minded" of Brazilian farmers. "Improved seeds, excellent fertilizers, correct use of the soil, last generation equipment", are among the reasons behind this agriculture boom, besides the good weather conditions. "We can say we have before us an "abundance crisis"". The total area planted in the 2002/2003 season reached 43,4 million hectares, an 8% increase equivalent to 3,2 million hectares more than in 2001/2002. Brazil's main crops are soybeans, corn and wheat, with soybeans expected to reach a total production of 52,2 million tons, a 24,6% increase, making the country the world's main producer ahead of United States, said Mr. Rodrigues. In 2001/2002 Brazil harvested 41,9 million tons of soybeans. The late crop of corn is expected to reach 11,07 million tons, totalling an annual production of 45,8 million tons, 29,8% increase over the previous season. The wheat crop reached 4,55 million tons, 56% jump over 2001/2002. Rice on the other hand dropped 1,7% from 10,626 million tons to 10,441 million tons this season. Brazilian agro-business exports this year are expected to reach 23 billion US dollars. Mr. Alencar said that much credit of the successful and record harvest must go to President Lula da Silva who pushed hard for the liberation on time of the 10 billion US dollars in credits granted to Brazilian agriculture. Taking into account all Mercosur members soybean crops, that are Brazil, Argentina, Paraguay, Bolivia and Uruguay, the region represents 40% of world production.

Chilean pork with dioxin

Chile's Agriculture and Livestock Service, SAG, managed to locate the hog farm from where pork meat confiscated in Southern Korea originated. Last week South Korean sanitary authorities detected, and confiscated, Chilean pork with excessive dioxin level (50% above the 5 pictograms per gram authorized by international standards) and immediately notified their counterparts in Chile. However, according to Chilean authorities given the traceability system applied in the country the only hog farm involved was rapidly detected, and all the meat in the abattoir that processed it withheld for further examination. SAG officials indicated that the farm has been isolated and a team of experts is looking for the possible dioxin contamination causes. Water has been cleared since it's pumped from deep underground and is stored in elevated deposits. Besides water samples proved negative. Chilean authorities have decided that meat and fat samples be analyzed both in local and international laboratories to determine with precision the origin of the dioxin. SAG also pointed out that South Korea "isolated the only batch of pork rejected" and temporarily suspended imports from the abattoir that processed the contaminated hogs. The official SAG release does not indicate the number of hogs involved or the location of the farm.

Euro-zone lowers growth estimate

The European Commission lowered this Monday the Euro-zone growth estimate for 2003 to 0,7% a significant drop that could have a greater impact in the country members budgets. However the Commission said it expected country members to keep their commitment to more balanced budgets in spite of the fact that the two main economies of the Euro-zone, France and Germany have exceeded agreed budget deficits. "There's a strong feeling that recovery will begin in the second half", said Mr. Gerassimo Thomas Monetary and Economic Affairs spokesperson, before the two days meetings of Euro-zone and European Union Finance ministers. "Economic Affairs Commissar Mr. Pedro Solves has indicated that the 1% growth estimate for the Euro-zone and 1,3% for the European Union announced last spring will not be achieved", said Mr. Thomas adding that for the Euro-zone "0,7% was probably more accurate". Playing a more optimistic tune, Mr. Thomas said that "All signals we've received are that all member countries are committed to structural reform and fiscal consolidation, in spite of the current difficult situation". Last week the European Central Bank kept interest rates unchanged at 2% the lowest ever since a half point cut last June. But the Bank of England surprised markets when it decided a 0,25% cut in the basic rate that now stands at 3,5%. The Euro-zone actually expanded 0,1% during the first quarter and according to a European Commission projection, the second and third quarters should register between 0 and 0,4% growth.