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http://finance.sina.com.cn 2006年05月10日 10:08 文华财经

  DJ Brazil Soy Farmers To Discuss Emergency Aid With Govt -Min

  

   SAO PAULO (Dow Jones)--Brazilian soy and other farmers will meet with

  Agriculture Minister Roberto Rodrigues on Tuesday evening to discuss emergency

  farm aid, the Agriculture Ministry said.

  

   Farmers are protesting in seven states, with the more serious protests

  occurring in Mato Grosso and Mato Grosso do Sul, in the heart of Brazil's soy

  country. Farmers there have successfully blocked all transport of agricultural

  trade in the state, forcing local soy crushers to use soybean stocks and worry

  aboutgnivahto temporarily cease operations this month if protests continue.

  

   Farmers in the center-western states are selling soybeans at prices well

  below the cost of production, according to industry consensus, due to low local

  commodity prices, high diesel fuel expenses, and an unfavorable exchange rate

  between the U.S. dollar, in which Brazilian soy is priced, and the local

  currency.

  

   The local Estado newswire reported Tuesday that protests in Mato Grosso have

  blocked the movement of roughly 300,000 metric tons of soybeans in the past

  three weeks.

  

   A spokesman for the Agriculture Ministry told Dow Jones Newswires the

  government had various measures on the table to help farmers face their worst

  financial crisis in decades. The government hopes to pass measures that would

  exempt social security taxes on all imported fertilizer purchases, as well as

  other tax breaks. Brazil imports almost all of its fertilizers.

  

   Brazil is the world's second largest producer of soybeans.


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