Brasília, January 29, 2004 (Agência Brasil - ABr) - The National Confederation of Agriculture (CNA) released a study, yesterday (28), of Parmalat's debt to 20 thousand dairy farmers in 14 Brazilian states. The contracts span the period from the end of November to the end of December. According to the CNA, this debt comes to R$ 14 million. By February 16, the total debt can reach R$ 28 million, according to calculations made by the Confederation.

For the president of the CNA's National Dairy Cow Commission, Rodrigo Alvim, the Brazilian government should take steps to intervene in Parmalat's management, through a Provisional Measure or other instruments. "This is a social problem, not just an economic one," Alvim affirmed.

Another complaint made by dairy farmers is that the R$ 200 million in Federal Government Loans (EGF) are not being made available. The purpose of these resources, announced last week by the Ministry of Agriculture, is to permit farmers to build up stocks in the period between harvests, when production is greater than demand. "So far only one cooperative obtained the loan. The Bank of Brazil is demanding real guarantees, the guarantee being the stock itself. As well as wanting to charge interest rates higher than 8.75%, which is the interest rate for the EGF," Alvin asserted.

Another proposal is for the government to buy 2 thousand tons of powdered milk from 15 cooperatives that received the product as a form of payment.

The CNA discussed, yesterday, the effects of the Parmalat crisis and presented proposals to the Special Commission of the Chamber of Deputies. For the organization, a creditors' management committee needs to be set up, including a lawyer, an administrative manager, a deputy, and representatives of Parmalat employees, farmers, and cooperatives. (DAS)