Brazil-Production costs increase.

BRAZIL

INFLATION WORIES WITH HIGHER FOOD PRICES

Brazil is losing its status as the worlds lowest cost global meat producer, as inflation takes a hold of the economy.

President Lula de Silva, has made it part of his policy to close the gap, between rich and poor and the increase in costs have been budgeted into government policy.

There has been a marked increase in the cost of fertilizer and the costs of fuel, which is in line with the costs in other nations.

Work has started on the new road system to the Pacific Ocean, that will trim millions of dollars each year, on transport to the Pacific Rim countries.

Currently shipping is all from Atlantic ports, meaning that goods bound for Asia carry a very high shipping tariff.