BRAZIL (2 April)

Several parts of the country continue to be severely affected by El Niño-related effects. In the northern State of Roraima, high temperatures and below-normal rainfall resulted in widespread forest fires with consequent damage to crops in the affected areas. Planting of the 1998 wheat crop has started in the main producing state of Parana and should start from May in the second largest producing state of Rio Grande do Sul. Plantings in both states should decline from 1997 largely as a consequence of difficulties in financing last year’s harvest and the low quality of wheat obtained because of adverse weather conditions. Early forecasts point to an area planted of something less than 1.4 million hectares compared to 1.5 million hectares in 1997.

Harvesting of the 1998 maize crop continues in the main producing southern states while planting has started in the North- East, currently affected by prolonged dry weather associated with El Niño. A total domestic output of 32.5 million tonnes is provisionally forecast compared to 34 million tonnes in 1997. This mainly reflects the combination of farmers’ decision to switch to alternative crops attracted by higher prices relative to maize and the adverse effect of weather in some parts.

Harvesting of the 1997/98 paddy crop has been delayed because of El Niño induced heavy rains in the main producing areas. Output is expected to be about 9.7 million tonnes, a slight improvement over the previous year, but still below average. Wheat, maize and rice imports are expected to increase considerably in 1998 to compensate for domestic production deficits.