In January, IBGE conducted the first evaluation - at national level - of the harvest for the year 2006. According to the Systematic Survey of Agricultural Production – LSPA, the national production of cereals, legumes and oilseeds (cotton seed, peanuts, rice, castor beans, corn, soybeans, oats, rye, barley, sunflower seeds, sorghum, wheat and triticale)  estimated for 2006 is 126, 083 million tons, 12.12% more than in the previous year (112, 454 million tons).

Among the major producing regions, the overall amount expected for 2006 is distributed as follows: in the South, 51.196 million tons, contributing 40.61% to the national production; in the Central West, 42,358 million tons, contributing 33.59%; in the Southeast, 17.736 million tons, contributing 14.07%; in the Northeast, 11.105 million tons, contributing 8.80% and in the North, 3.688 million tons, contributing 2.93%. Comparing these figures to those obtained in 2005, there are increases of 32.96% in the South region; of 10.73% in the Northeast; of 1.08% in the Southeast; of 0.03% in the Central West and reduction of 8.49% in the North of Brazil.

Increased production of beans, corn and coffee according to the first estimate for 2006

Among the main products investigated by the Systematic Survey of Agricultural Production – LSPA, positive changes in relation to the amount harvested in 2005 were registered for: coffee beans (16.69%), sugarcane (4,35%), onions (3.70%), beans – 1^st harvest (grain) (34%), cassava (3.42%), corn -1^st harvest (grain) (24.36%), soybeans (7.39%) and sorghum (grain) (4.53%). With negative figures were: herbaceous cotton (seed) (-23.88%), rice (-13.07%) and potatoes – 1^st harvest (-4.34%).

IBGE estimates production of 42 million sacks of coffee in 2006

The first estimate for the 2006 production of coffee beans at national level was released in January. Production of 2,503 million tons of coffee, that is, of about 42 million sacks, is expected. In comparison with the previous year, there are increments of 17% in production, of 16% in productivity and of 0.55% in planted area.

Among the main factors accounting for these positive changes in the coffee market this year are the phenomenon of "biannual planting" (alternation of production due to the characteristics of the plants), prices, favorable climatic conditions and more frequent cultural practices, especially trimming, disbudding and phytosanitary control (plagues / diseases).

Minas Gerais and Espírito Santo lead the planting of coffee in the country, with 73% of the national total of this type of rubiaceae. In the first state there is predominance of Arabian Coffee and in the second, of Conilon Coffee. Minas Gerais is supposed to produce 1.3 million tons (contributing 49% to the national production) and Espírito Santo, 589 thousand tons (24% of the national production). Both states present positive changes in production figures in relation to the previous year, with estimated increases of 22% and 11%, respectively.

Production of beans (1^st harvest), corn and soybeans is expected to increase in 2006

In case of beans - 1st harvest, production of 1,887 million tons is expected for the current year, 34% more than in 2005 (1,408 million tons). In an area of 2,377 hectares to be planted, productivity may reach 794 kg/ha. The main reason to this increase is the positive performance of commercialization prices in the previous harvest. The main producing state – Paraná, Bahia and Minas Gerais – presented increase in relation to the previous harvest: 11%, 99% and 7%, respectively, which means production of 439 thousand, 245 thousand and 259 thousand tons.

In relation to the crops of corn and soybeans, production is expected to increase by 24% and 14%, respectively, with a total of about 34 million tons of corn and of 59 million tons of soybeans. Productivity figures are  3500 kg/ha for the grain and 2700 kg/ha for the legume. Among the main producers of corn – 1^st harvest, the highlights are Paraná, Minas Gerais, Rio Grande do Sul, São Paulo, Santa Catarina and Goiás. In terms of soybeans the highlights are Mato Grosso, Paraná, Rio Grande do Sul, Goiás, Mato Grosso do Sul, Minas Gerais and Bahia.

It should be highlighted that because of long dry periods in the months of November and December 2005 in Paraná and Santa Catarina, the production of both crops was reduced in relation to the first estimates concerning 2006, released in November 2005 and in January 2006.

Low prices of cotton and rice resulted in reduction of the 2006 harvest

The January estimate for herbaceous cotton points to a production of 2,787 million tons, 24% less than the figure in 2005 (3,661 million tons). This decrease was caused by the low prices of this fiber in the domestic and – mainly - in the foreign market. Mato Grosso, the major national producer, responsible for 46% of the Brazilian cotton, expects to harvest about 1.3 million tons, 24% less than the amount harvested in 2005.

In terms of rice crops, a downward trend has been detected since the release of the first prospects in the months of October and December 2005, due to the low commercialization prices in the previous harvest. In a planted area of 3,177 million hectares (-19%), production of 11,500 million tons, 13 % less than in 2005 (13,2 million tons), is expected. The main producing states - Rio Grande do Sul and Mato Grosso – are expected to obtain 6.08 million and 877 thousand tons, respectively, figures 0.32% and 0.61% lower than those of the previous harvest.