Government Reaffirms Support Measures for Swine

31 July 2012, at 9:35am

BRAZIL - The Ministry of Agriculture, Livestock and Supply (MAPA) has announced that it has kept a set of measures for the support of pig farmers

Measures include the renegotiation of debt costs and investment contracted by breeders, the definition of the minimum price for live pigs of $2.30 per kg, in the South and Southeast, and $2.15 in the Midwest, the subsidy of $0.40 per kg of pork and the creation of a Special Line Credit (LEC) for the purchase of pigs with a rate of 5.5 per cent per year, with initial value of $200 million.

It also is expected to increase the limit of the credit line for retention of matrices by independent producers of $1.2 million per producer for $2 million by 30 December this year.

These measures have been sent to the National Monetary Council (CMN) last week for consideration.

Due to the extensive agenda of the meeting, the vote did not take place as scheduled, Thursday, 26 July.

The Ministry reiterates that the public and private financial institutions were notified of the decisions, agreed upon extensively by the government and the Brazilian Association of Pig Breeders (ABCS).

The trading price of the product is already responding, in some regions, on average 20 per cent, provided that the measures were announced by the Minister Mendes Ribeiro Filho.