Best of the Week
Most Popular
1.Spain Ignores Scotland Lesson as Catalan Independence Referendum Could Spark Civil War - Nadeem_Walayat
2.Used Car Buying From UK Dealer Top Tips, CarMotion.co.uk Real Customer Experience - N_Walayat
3.Spanish New Civil War Begins as Madrid Regime Storm Troopers Quell Catalan Independence Rebellion - Nadeem_Walayat
4.Virgin Media Broadband Down, Catastrophic UK Wide Failure! - Nadeem_Walayat
5.Are the US Markets setting up for an Early October Surprise? - Chris_Vermeulen
6.The Pension Storm Is Coming To Europe—It May Be The End Of Europe As We Know It -John_Mauldin
7.Stock Market Crash 2018; Will it Prove to be Another Buying Opportunity - Sol_Palha
8.The Profoundly Personal Impact Of The National Debt On Our Retirements - Dan_Amerman
9.Stock Market as Good as it Gets; Like 2000 With a Twist -Gary_Tanashian
10.1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - Nadeem_Walayat
Last 7 days
Bitcoin Hits $6,000, $100 Billion Market Cap As Helicopter Ben and Jamie Demon Warn The End Is Near! - 22nd Oct 17
Time for Caution in Gold Miners - 22nd Oct 17
“Great Rotation” Ahead; Will it Be Inflationary or Deflationary? - 21st Oct 17
The Trigger for Volatility, Rates and the Next Crisis - 21st Oct 17
Perks to Consider an Agent for Auto Insurance - 21st Oct 17
Emerging Megatrends Hurting Consumers - 21st Oct 17
A Catalyst of the Stock Market Bubble Bust - 21st Oct 17
Silver Stocks Comatose - 21st Oct 17
Stock Investors Ignore What May Be The Biggest Policy Error In History - 20th Oct 17
Gold Up 74% Since Last Stock Market Peak 10 Years Ago - 20th Oct 17
Labour Sheffield City Council Employs Army of Spy's to Track Down Tree Campaigners / Felling's Watchers - 20th Oct 17
Stock Market Calm Before The Storm - 20th Oct 17
GOLD Price Creates Bullish Higher Low - 20th Oct 17
Here’s the US’s Biggest Vulnerability in NAFTA Negotiations - 20th Oct 17
The Greatest Investing Lesson Learned from the 1987 Stock Market Crash - 20th Oct 17
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Brazilian Agribusiness and Ethanol Update

Commodities / Brazil Oct 15, 2007 - 08:55 AM GMT

By: David_Vaughn

Commodities

Agribusiness is the main driver of the Brazilian economy accounting for 33% of GDP, 42% of exports, and 37% of all employment.

Agribusiness export revenues for the month of August reached $5.8 billion, representing 13% YoY growth. Sugar sales fell 17.9% in value YoY. Exports dropped 13.6% in value but rose 23.3% in volume.


In the southeastern state of Sao Paulo , which accounts for 31% of Brazil 's GDP, the trade surplus was $6.92 billion for the first eight months of the year. Business in Sao Paulo is different from the rest of the country. 85% of the products undergo some sort of industrialization and/or processing, whereas for Brazilian exports as a whole the number is 56%. A much higher percentage of products created in Sao Paulo are modified to some extent and Brazilian agriculture is exported to the world through a variety of means, be it through sugar based products or the bagged salads you find in your local grocery store.

The Netherlands recently released a study looking at the sustainability of Brazilian ethanol as a prelude to importing ethanol in order to meet future energy demands. The study found that there were no issues which would preclude San Paulo ethanol from not being able to meet Dutch sustainability standards for 2007.

National Food Supply Company president, Wagner Rossi announced that the March 2008 sugar cane harvest is expected to yield 547 million tons, a 15.2% increase over the previous crop. 473 million tons, or 86.47%, is expected to be used for sugar and alcohol production. Plant technicians aim to maintain similar sugar levels as last year due to the low market price while alcohol production is expected to increase by 21.9% from last year. We can expect the amount of available ethanol to remain flat in the coming year as well.

Farmland used for the growing of sugar cane grew by 12.3% to 6.9 million hectares, up from 6.2 million a year ago.

Environmentalists are concerned over the damage to the rainforest in Brazil as it helps maintain the world's ecosystem. In a landmark decision, Brazilian Indians are celebrating a court decision declaring that 18,070 hectares of land in Espirito Santo belong to the Tupinikim and Guarani people rather than multinational Aracruz Celulose. This decision may pave the way for a slowdown in the destruction of the rainforest and capping the amount of available farmland, a bullish sign for sugar and agricultural prices.

Last week, the United Nations Conference on Trade and Development disclosed that Brazil is the fifth most attractive country to invest. Already, FDI through August of 2007 has surpassed the total FDI for all of 2006.

Brazil and Saudi Arabia have been working towards a trade agreement with Mercosur and the GCC which would promote investment between the two countries. Last year, Saudi Arabia opened itself up to Brazilian mining companies. Saudi Arabia is promoting Brazil as a place to invest and Arab banks have been listing on the Brazilian exchanges.

Click here to order Gold Letter

Send me an email and your comments.

By David Vaughn
Gold Letter, Inc.
David4054@charter.net

“The Worldwatch Institute, an organization that focuses on environmental, social and economic trends, says the current rate of global demand for resources is unsustainable.”  

The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. © Copyright 2007, Gold Letter Inc.

David Vaughn Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Luiz Fernando Brandão
18 Oct 07, 13:09
Comments about Aracruz Celulose

As Manager of Corporate Communications at Aracruz Celulose, I would like to make the following comments about the financial analysis above.

First, readers of this article might conclude - wrongly - that Aracruz Celulose grows sugar cane in order to produce ethanol. This is not the case. In fact Aracruz is the world's leading producer of eucalyptus pulp which is used to manufacture printing and writing paper, tissue, and high value-added specialty papers.

It is also implied that Aracruz is a company involved in the destruction of the rainforest in Brazil. This is not true. In fact it is quite the reverse.

Aracruz established its first eucalyptus plantations during the 1960s in areas that were largely deforested. Thanks to the forestry practices that were adopted, the native forests were conserved and enriched. In Aracruz’s pioneer plantation region (in the State of Espírito Santo), native reserves today total 55,000 hectares, or 35% of the company’s total area, which is much higher than the ratio found in adjacent areas.

With regard to the recent court decision concerning the demarcation of Aracruz's lands to the Tupinikim and Guarani people, please note that, after many months of consultation and deliberation, Brazil's Minister for Justice decided in August of this year that 11,000 hectares of Aracruz's land (not 18,070 hectares) should be demarcated to the Tupinikim and Guarani people. At the time that he made the ruling, he made it clear that Aracruz had not expelled any indigenous communities from the areas.

Further details of these issues and our environmental track record can be found on our website at www.aracruz.com.br.

Luiz Fernando Brandão

Manager of Corporate Communications

Aracruz Celulose, Brasil


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife