Brazil’s Minimum Price Policy and the Agricultural Sector of Northeast Brazil

The effect pubic policy has on the relative prices of agricultural commodities is a controversial topic in developing countries, developed countries, and international agencies alike. The controversy arises as a result of a lack of understanding of the conflicting effects of relative price changes on various producer and consumer income classes and, when the effects are understood, as a result of emphasizing the value class over another. Unfortunately, there are a few case studies available on the workings of the many and varied approaches taken to agricultural price policy in the developing countries. IFPRI was delighted to take advantage of Roger Fox’s availability to make this study of the minimum price program of Brazil, as it applies to the low-income, agriculturally based Northeast region of the country.