Brazil’s Big Stake in Cotton Likely to Become Bigger

For some time now, Brazil has been a leading critic of cotton subsidies of over $3 billion paid out to American cotton growers. Its stand against such supports, which leads to increased output in the US and artificially depresses global prices, is finally paying off. With the World Trade Organization ruling in early June that American cotton subsidies violated international trade rules, Brazil is witnessing a cotton revival that is pumping in thousands of dollars in profits for farmers. “This landmark decision could eventually drive up world prices and give cotton growers from Brazil to West Africa an incentive to increase production,” writes the author. Brazil's investments in crop management techniques and agricultural technology over the last decade have helped it become the world’s fifth-largest cotton producer. If the Brazilian government lifts its ban on genetically modified seeds, as many farmers hope it will, Brazilian farmers could decrease their production costs and potentially make even more money on the 'white gold'. – YaleGlobal

Brazil's Big Stake in Cotton Likely to Become Bigger

Todd Benson
Tuesday, June 29, 2004

Click here for the original article on The New York Times website.

Copyright 2004 The New York Times Company