Rio, June 24, 2004 (Agência Brasil) - The estimate made in May by the Brazilian Institute of Geography and Statistics (IBGE) for the 2004 harvest indicates that the production of cereals, legumes, and oilseed plants should add up to 119.6 million tons - 3.28% less than in 2003. May's figures are also 1.1% lower than the IBGE's estimate in April.

The South, responsible for the largest share of agricultural production in Brazil (41.63), is where a significant decline (-15.73%) is expected in comparison with 2003. In the other regions, the outlook is for growth: Northeast, 28.27%; North, 17.19%; Southeast, 5.75%; and Center-West, 4.24%.

According to the Systematic Survey of Agricultural Production, released today, the products with the greatest impact on the drop in production in relation to last year's crop are soybeans and first crop corn (kernels). The IBGE attributed the decline in corn production to the lack of rain and strong competition from soybeans, leading to a reduction in the area used to plant corn. As for soybeans, climatic problems in the South and Center-West, the chief producing regions, and pest attacks caused production to fall by 2 million tons in comparison with 2003.

Reporter: Cristiane Ribeiro
Translator: David Silberstein