April 11 (Bloomberg) -- Brazil's drive to boost output of ethanol made from sugar cane won't hinder efforts to also increase production of food, Agriculture Minister Reinhold Stephanes said.

In Brazil, ``biofuels do not compete with food crops,'' Stephanes said today in a Bloomberg Television interview. ``That isn't the case in other parts of the world.''

Brazilian President Luiz Inacio Lula da Silva said yesterday that rising food prices are fueling inflation and his nation needs to produce more food. Earlier this week, U.K. Prime Minister Gordon Brown said he is concerned biofuels are pushing up food prices around the world.

Global food prices increased 57 percent last month from a year earlier, according to the United Nations Food and Agriculture Organization. Countries including Indonesia and Egypt have seen unrest over high prices.

Brazil is able to feed its population and increase production of biofuels to meet domestic demand, Stephanes said. Agricultural output in the South American nation will grow 6 percent this year to a record, and may rise another 6 percent in 2009 depending on weather conditions, he said.

Soybean and corn output in Brazil will rise more than previously forecast this year, topping the records reached in 2007, the Agriculture Ministry said April 8. Surging prices led growers to increase planting and gave farmers more income to spend on improving the soil and fighting weeds and bugs.

Brazil plans to boost wheat output by 50 percent this year, Stephanes said.

To contact the reporters on this story: Carla Simoes in Brasilia at Csimoes1@ @bloomberg.net; Romina Nicaretta in Sao Paulo at at rnicaretta@bloomberg.net

Last Updated: April 11, 2008 11:56 EDT