The eighth estimate of IBGE for the national crop of cereals, legumes and oilseeds (cottonseed, peanut, rice, bean, castor bean, corn, soybean, oat, rye, barley, sunflower, sorghum, wheat and triticale), based on August's data, indcates that the production might reach the volume of 11.386 million tonnes, in 2004. This figure is 3.43% bellow the harvest of 2003 (123.632 million tonnes). In the comparison with July's estimate, which was of 119.479 million tonnes, August's estimate presented an increase of 0.08%.

Among the Major Regions, in absolute terms, the production was: 49.354 million tonnes (41.34%) in the South; 30.378 million tonnes (32.98%) in the Central-West; 17.542 million tonnes (14.69%) in the Southeast; 9.647 million tonnes (8.8%) in the Northeast and 3.466 million tonnes (2.9%) in the North.

AUGUST'S CROP SITUATION IN RELATION TO JULY 2004

In the comparison with July 2004's crop, the change of two products posted highlights in August: bean seeds 2nd crop (-7.40%) and wheat grain (-2.02%).

In relation to beans 2nd crop, which recorded decrease of 7.40% in the production estimate for August, the most relevant decrease came from  Bahia (-20%), where the sever weather condition harmed the culture (droughts), mainly in the Northeast Region of the state, with a highlight to the municipalities of Euclides da Cunha, Ribeira do Pombal, Ipirá and Serrinha.

As to the wheat culture, the production estimate change (-2.02%) in relation to July, comes from Paraná and Mato Grosso do Sul, with reduction of 3.84% and 11.71%, respectively. These decreases were a result of the droughts registered in August.

AUGUST'S CROP SITUATION IN RELATION TO THE 2003 PRODUCTION

Among the analyzed products, the ones that posted positive change in the production estimate in relation to the previous year were: upland cottonseed (60.11%), paddy rice (28.52%); sorghum (13.55%) and wheat (1.50%). The products that had negative changes were: bean seeds 1st crop (-10.45%); bean seeds 2nd crop (-3.64%); bean seeds 3rd crop (-11.02%); corn grain 1st crop (-9.93,%); corn grain 2nd crop (-19.72%) and soybean grain (-4.38%).

Concerning corn 2nd crop, the expected harvest amounts to a production of 10.675 million tonnes. This figure is 19.72% smaller (in absolute numbers, down 2.6 million tonnes) than the one harvested in 2003 (13.298 million tonnes). The total corn production in 2003 was of 42 million tonnes. Major national producer of corn 2nd crop, Paraná expects a reduction of 39% in 2004's production, estimating a volume of 3.661 million tonnes. The crop is being harvested and has almost finished, 60% of the planted area was harvested. The product harvested presents quality from regular to good. The lack of rain during August was favorable to corn harvest.

Concerning beans 2nd crop, the expected production is of 1.178 million tonnes, down 3.64% the amount harvested last year. This month, the higher decrease came from Bahia because of harsh weather. However, even with a decrease of 20% in the productivity in relation to July (the latter being at 603 kg/ha), Bahia expects to harvest a higher volume: 255 thousand tonnes versus 235 thousand tonnes of the previous crop.

As to wheat, a volume of 6.120 million tonnes is expected. From this total, about 90% are produced in Paraná and Rio Grande do Sul, being Paraná the major Brazilian producer of wheat and responsible for 51% of the production. Paraná expects for this crop a production of 3.117 million tonnes versus 3.091 million tonnes in 2003 (0.82%) In August, the weather conditions were not good to the wheat culture, because the lack of rain and the occurrence of fungal diseases (especially wheat blast) in the North and West Regions, where Paraná's major triticale centres are concentrated, caused damage to the production. In these areas, where the planting is early, the harvest has already started and 5% of the planted area was already harvested. The wheat farms are as it follows: 50% in development; 30% in anthesis and 20% in fruiting stage.

LIVESTOCK

Q2 of 2004 - results show increase in cattle slaughter

Cattle

The Quarterly Animal Slaughter Survey indicated that 6.426 million cattle were slaughtered in the 2^nd quarter of 2004 - an increase of 7.62% in relation to the first quarter of 2004 and of 25.22% in the comparison with the second quarter of 2003.

As to the total weight of animal carcases - 1.468 bi kg - there was increase of 7.93% over the 2004's first quarter and of 23.57% over the 2003's second quarter. Considering the 2003 second quarter, all categories surveyed posted increase in the total number of carcases: 16.06% to cattle; 34.27% to cows and 35.88% to steers. The exception is calf, which decreased 42.21%.

Hogs and Pigs

In the second quarter of 2004, 5.407 million of hogs and pigs were slaughtered - an increase of 1.56% over the first quarter of 2004 and a decrease of 2.39% in relation to the second quarter of 2003.

As to the carcase weight of hogs and pigs , the changes were 2.17% and -1.55% in Q1 2004 and Q2 2003 , respectively. The animals are still being slaughtered at an average weight equal to that of the 2nd quarter of 2003 and first quarter of 2004, 86 kg.

Poultry

In the second quarter of 2004, 878.750 million chickens were slaughtered - an increase of 2.98% comparing with the first quarter of 2004 and  14.14% above the second quarter of 2003. In relation to carcase weight, the increase was of 5.59% in comparison to the first quarter of 2004 and of 15.36% in the comparison with the second quarter of 2003.

Milk production

The volume of milk received in the Brazilian milk processing plants in Q2 2004 was of 3.288 bi liters. This represents a decrease of 9.24% over the first quarter of 2004 and an increase of 4.72% over the second quarter of 2003.

In the second quarter of 2004 the volume of industrial milk in the companies was of 3.278 bi liters. Comparing with the first quarter of 2004, this volume was 9.17% smaller and it was 4.86% higher in relation to the second quarter of 2003.

The major milk collecting states, in decreasing order of national participation, are:  Minas Gerais ( 29.19%), São Paulo (17.18%), Goiás (12.30%), Rio Grande do Sul (10.29%), and Paraná (3.60%).

Cowhide production

The data of the quarterly leather survey, in the second quarter of 2004, indicates an acquisition of approximately 8.696 million parts of rawhide in Brazil. This represents an increase of 3.16% against the first quarter of 2004 and of 4.72% against the second quarter of 2003. About tanned leather, 8.621 million parts were registered. Both comparisons posted increase: 2.21% in relation to the first quarter of 2004 and 17.60% in relation to the second quarter of 2003.

The data shows 0.86% percentage of difference between the acquired and the industrialized product in the second quarter of 2004.

Hen eggs production

In the second quarter of 2004, 475.290 million dozens of hen eggs were produced - an increase of 1.71% in the first quarter and 3.94% in the second quarter of 2003.