Keite Camacho
Reporter Agência Brasil

Brasília - Minister of Agriculture, Roberto Rodrigues, says that with changes in macroeconomic policy and lower harvest costs the outlook for 2006 is very positive.

"Harvest costs will be lower this year than they were last year. Either because of a smaller cropland, which may reduce supply and affect prices, or due to changes in government macroeconomic policy which shows signs of being more flexible next year. I believe the worse is over," said the minister.

Rodrigues said this year's crisis in the sector was due to various problems. "It was a hard year. There was drought in the south and high interest rates and tight credit everywhere. The exchange rate ate up the farmer's profit margin. And then there was the problem of isolated cases of foot and mouth disease that reduced our beef exports by almost US$110 million."

Translation: Allen Bennett