Food supply

Mercosur leaders meet to discuss possible solutions for the financial crisis that has hit the agricultural market. Leading breadbasket countries like Argentina and Brazil are expected to reduce their 2008/09 crop due to tighter credit.  

Brazil will import wheat from Russia instead of its traditionally supplier, Argentina.  

Argentina was hit by a drought, government policies, and high input costs that dropped production. 

Brazil and Argentina are the 2nd and 3rd largest soybean producers in the world.  The situation going forward looking grim.