Brasília, June 9, 2004 (Agência Brasil) - Brazil obtained revenues of US$ 7.3 million from exports of milk and dairy products last month, 188.7% more than the US$ 2.5 million registered in May, 2003. This was in large part due to the increase in export volume, which rose 115.6%. 4.9 thousand tons of dairy products were exported last month, compared with 2.3 thousand tons in May, 2003.

These figures were announced today by the president of the National Dairy Cow Commission (CNPL) of the Brazilian Confederation of Agriculture and Livestock (CNA), Rodrigo Alvim. He attributed the historic record in dairy exports to the country's contract with the United Nations to supply the Iraqi market. US$ 3.1 million of May's total exports represented sales of powdered milk to Iraq, according to Alvim.

The CNA director explained that, in addition to exporting more dairy products, Brazil expanded its shipment of products with greater aggregated value, such as powdered milk and special cheeses.

If this tendency, which has been taking shape since 2001, persists, he estimates that Brazil's current exports, to nearly 40 countries, will amount to the equivalent of 400 million liters of milk, as against 350 million liters in imports, yielding a surplus of around US$ 5 million.

At the same time as dairy exports grow, the domestic market is reducing its imports in this sector. Purchases of foreign dairy products totaled US$ 8.3 million in May, 17.2% less than the US$ 10.1 million registered in May, 2003. The cumulative figure for imports between January and May comes to US$ 30.4 million, 44.3% less than the US$ 54.5 million that were spent in the same period last year.

Reporter: Stenio Ribeiro
Translator: David Silberstein