Trends, major problems, and potential of wheat production in Brazil
1990
Silva, A.R. da (Brazilian Agricultural Research Enterprise, Brasilia, DF (Brazil))
Important changes in Brazilian wheat production, consumption, and policy have occurred in the last 5 years. Annual production during the 1985- 89 period was 5.5 million tons compared to 2.2 million tons during the 1980- 84 period. Average national yield increased from 998 kg/ha during 1980-84 to 1634 kg/ha in 1985-89. During the 1985-89 period, wheat area increased 30 (%). Wheat consumption decreased from a peak of 57 kg per capita in 1980 to 46 kg in 1989. These trends were due to the Government's policy of using domestic wheat production to substitute for wheat imports whenever possible, the Government's monopoly of buying and selling all domestic and imported wheat, and farmers' adoption of new technologies. With the new Brazilian government, a recent policy change toward market integration with other countries in South America has come about. Brazil has agreed to import up to 2.2 million tons of wheat annually from Argentina over the next 5 years. Wheat production was stimulated in the 1980s by a farmer price that was 33 (%) above the imported wheat price at the official exchange rate. However, this value decreases to 12.5 (%) if the shadow exchange rate is used, which eliminates the over valuation of the Brazilian currency. The new Government policy of allowing the exchange rate to fluctuate freely and a completely liberalized trade policy will influence future wheat consumption and production
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