Brasília, December 31, 2003 (Agência Brasil - ABr) - The consequences for the Brazilian dairy industry of Parmalat's state of legal composition abroad will be assessed in the first days of 2004, at a meeting of the Milk and Dairy Products Sectorial Chamber, convened by the Minister of Agriculture, Roberto Rodrigues. According to the Ministry of Agriculture, one of the biggest concerns is that the small regional producers who furnish milk exclusively to Parmalat Brazil may suffer damage, in case the company's crisis affects the national market.

The Italian headquarters of Parmalat recently entered into composition, with a hole amounting to 10 billion euros, the equivalent of R$ 36 billion. The secretary of Production and Commercialization, Lineu Costa Lima, affirmed on Tuesday (30) that the Ministry of Agriculture is accompanying the Parmalat crisis. "At the meeting with the representatives of the productive chain, we shall discuss what measures can be adopted to avoid damages to the sector," the secretary said.

The debts of Parmalat's Brazilian subsidiary, part of which are already overdue and another part scheduled for payment today, involve 19 thousand milk producers. (DAS)