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Brazil Authorises US Maize Imports to Relieve Price Pressure

4 August 2016, at 12:00am

BRAZIL - The Brazilian government has said it will allow import of 1 million tons of corn (maize) from the US to increase tight supplies in the country.

Government representatives gave this assurance during an emergency meeting with the country's Association of Animal Protein (ABPA) and other representatives of the poultry and swine industries.

The meeting was called to discuss the crisis in the pig and poultry industries caused by high corn prices, due to lower production in Brazil this year.

Chief executive of ABPA Francisco Turra said: "The US is reaping a great harvest and has considerable surpluses. In addition, estimates of purchase prices show prices there are more attractive than those in our domestic market. It will be a great relief for the entire industry."

The import consent, from Agriculture Minister Blairo Maggi, runs until October this year. In addition to the US corn import, the group was informed by the government that there is a supply of 2.5 million tons in Paraguay and over 15 million tons in Argentina, which can be imported by companies.

Mr Turra said that harvests exceeding forecasts, plus the news of expansion in the area planted for the next harvest, should reduce the pressure on corn prices.

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