'Brazil Sovereign'

Government launches food purchase plan to offset U.S. tariff impact on family farming

Effort seeks to keep prices stable while shielding small farmers from market shocks

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Açaí, frutas, castanha e pescado estão entre os produtos taxados em 50% pelo governo dos Estados Unidos
Açaí, frutas, castanha e pescado estão entre os produtos taxados em 50% pelo governo dos Estados Unidos | Crédito: Evaristo Sá, Mauro Pimentel, Mohamed Bio e Miguel Schincariol/AFP

The ‘Brazil Sovereign’ plan, announced by President Luiz Inácio Lula da Silva on Wednesday (13), includes the public purchase of perishable foods that could not be exported to the U.S. market. The measure is part of a provisional decree introducing emergency actions to mitigate the impact of the 50% tariffs imposed by the U.S. government on Brazilian products.

“This will allow these perishable products, originally destined for export, to be absorbed by our domestic market and feed our children through school meals, as well as supply other institutional purchases,” said acting Minister of Agrarian Development and Family Farming (MDA) Fernanda Machiaveli to BdF.

Machiaveli noted that many family farmers are part of export chains, such as producers of fruit, fish, açaí, nuts, and honey. She stressed that the measures will be essential to help small-scale agriculture withstand the crisis.

Another initiative is the resumption of the government’s stockpiling program, aimed at supporting cooperatives that were set to export. This measure will provide working capital, allow for stock storage, and give cooperatives time to redirect products to other domestic or international markets.

According to Machiaveli, a third strategy is market diversification for goods produced by small farmers. “Our açaí, fruits, and fish are heavily directed to the United States, and now we are working to secure agreements with other buyers. Minister Paulo Teixeira is in Japan today doing exactly that. In this way, we will protect family farming,” she said.

The acting minister emphasized that while the U.S. decision is “unfair” and has significant effects on Brazil’s economy, the government will be able to reverse its domestic impact to stabilize prices and “feed the Brazilian people even better.”

“We were already making efforts to direct more food to the domestic market, strengthen supply, and ensure quality food. In this context, prices are likely to remain stable, and we will ensure that our people eat even better,” Machiaveli said.

The government’s economic team stated that, in the coming days, it will release details on the criteria for purchasing food from exporters affected by the tariff hike.

Edited by: Martina Medina
Translated by: Giovana Guedes
Read in: Português

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