DJ Brazil Soy Farmers To Discuss Emergency Aid With Govt -Min
SAO PAULO (Dow Jones)--Brazilian soy and other farmers will meet with
Agriculture Minister Roberto Rodrigues on Tuesday evening to discuss emergency
farm aid, the Agriculture Ministry said.
Farmers are protesting in seven states, with the more serious protests
occurring in Mato Grosso and Mato Grosso do Sul, in the heart of Brazil's soy
country. Farmers there have successfully blocked all transport of agricultural
trade in the state, forcing local soy crushers to use soybean stocks and worry
aboutgnivahto temporarily cease operations this month if protests continue.
Farmers in the center-western states are selling soybeans at prices well
below the cost of production, according to industry consensus, due to low local
commodity prices, high diesel fuel expenses, and an unfavorable exchange rate
between the U.S. dollar, in which Brazilian soy is priced, and the local
currency.
The local Estado newswire reported Tuesday that protests in Mato Grosso have
blocked the movement of roughly 300,000 metric tons of soybeans in the past
three weeks.
A spokesman for the Agriculture Ministry told Dow Jones Newswires the
government had various measures on the table to help farmers face their worst
financial crisis in decades. The government hopes to pass measures that would
exempt social security taxes on all imported fertilizer purchases, as well as
other tax breaks. Brazil imports almost all of its fertilizers.
Brazil is the world's second largest producer of soybeans.
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