Brazil ranks fifth in the ranking of most attractive countries for foreign direct investment (FDI), losing only to China, India, the United States, and Russia. The figures were taken from a survey disclosed yesterday (04) by the United Nations Conference on Trade and Development (Unctad), conducted among 192 of the largest transnational companies in the world.
Besides Brazil, only Mexico, of all Latin American nations, features in the list of the 10 most attractive destinations, in the 9th position. Other countries in the region rank much lower, such as Argentina, in the 29th position, Venezuela, in 31st, Chile, in 37th, and Peru, in 40th. According to the survey, market size and growth, as well as access to natural resources, were the factors most cited by the companies to justify investments in Latin America.
Although the survey includes investments forecasted up to 2009, in the case of Brazil, a rise in the investment inflow is already taking place. According to preliminary data supplied by the Brazilian Central Bank, US$ 26.5 billion in FDI entered the country between January and August 2007, an amount that already surpasses total investments made last year, which stood at US$ 18.8 billion.
According to the Central Bank, during the period, the funds applied into Brazil came mostly from Holland, the United States, Luxembourg, Spain, and Germany. The sectors that attracted the most investments were sectors like basic metallurgy and steel industry, financial intermediation, metal mining, services paid to companies, trade, the chemical industry, manufacturing of coke, petroleum, fuels and alcohol, construction, the food and beverage industry and supply of electricity, gas, and hot water.
For more information click here and read the article in ANBA website
Wednesday, 31 October 2007
New Member
The ABCC representatives would like to welcome Propharma Australia Pty Ltd (Victoria) as a new member and thank you for your support.
ABCC Events
Do not miss our Latin Christmas Cocktails in Adelaide, Melbourne and Sydney. A great opportunity to meet our State representatives, the Latin business community and our members to celebrate the end of the year.
Latin Christmas Cocktail Adelaide
Co-hosted with the ALABC and the Australia-Chile Chambers of Commerce
Date: Thursday, 8th November
Time: from 6:00pm
Venue: Mesa Lunga, Corner Morphet & Gouger St Adelaide
Cost:
Members of ALABC, ABCC & ACCC: $25.00
Non-Members: $35.00 (Cocktail foods and Sangria included)
Download the registration form at the events page on our website:
www.australiabrazil.com.au
Latin Christmas Drinks Melbourne
Co-hosted with the ALABC, the Uruguay and Chile Chambers of Commerce.
Date: Tuesday, 20th November
Time: from 6:00pm
Venue: European Bier Cafe, 120 Exhibition St
Cost:
Members of ALABC, ABCC, AUCC & ACCC: $25.00
Non-Members: $35.00 (Cocktail foods and beverages included)
To register, please email: info@australiabrazil.com.au
Latin Christmas Cocktail Sydney
Co-hosted with the ALABC, Uruguay, Argentine and Chile Chambers of Commerce.
Date: Thursday, 29th November
Time: from 6:00pm
Venue: Bureaux, 50 York St Sydney 2000
Cost:
Members of ALABC, ABCC, ACCinA, AUCC & ACCC: $35.00
Non-Members: $45.00 (Cocktail foods and beverages included)
To register, please email: info@australiabrazil.com.au
Product Development Management Seminar
The ABCC member, Project Performance International, is one of the sponsors at the Product Development Management Seminar in Parana State, Brazil ("II Seminário Paranaense de Gestão do Desenvolvimento de Produto") to be held on 9 November, 2007, with about 250 delegates. Delegates will be mainly professionals in the product development area (designers, engineers, technicians).
For more information on the conference navigate:
http://www.damec.ct.utfpr.edu.br/iispgdp/
Latin Christmas Cocktail Adelaide
Co-hosted with the ALABC and the Australia-Chile Chambers of Commerce
Date: Thursday, 8th November
Time: from 6:00pm
Venue: Mesa Lunga, Corner Morphet & Gouger St Adelaide
Cost:
Members of ALABC, ABCC & ACCC: $25.00
Non-Members: $35.00 (Cocktail foods and Sangria included)
Download the registration form at the events page on our website:
www.australiabrazil.com.au
Latin Christmas Drinks Melbourne
Co-hosted with the ALABC, the Uruguay and Chile Chambers of Commerce.
Date: Tuesday, 20th November
Time: from 6:00pm
Venue: European Bier Cafe, 120 Exhibition St
Cost:
Members of ALABC, ABCC, AUCC & ACCC: $25.00
Non-Members: $35.00 (Cocktail foods and beverages included)
To register, please email: info@australiabrazil.com.au
Latin Christmas Cocktail Sydney
Co-hosted with the ALABC, Uruguay, Argentine and Chile Chambers of Commerce.
Date: Thursday, 29th November
Time: from 6:00pm
Venue: Bureaux, 50 York St Sydney 2000
Cost:
Members of ALABC, ABCC, ACCinA, AUCC & ACCC: $35.00
Non-Members: $45.00 (Cocktail foods and beverages included)
To register, please email: info@australiabrazil.com.au
Product Development Management Seminar
The ABCC member, Project Performance International, is one of the sponsors at the Product Development Management Seminar in Parana State, Brazil ("II Seminário Paranaense de Gestão do Desenvolvimento de Produto") to be held on 9 November, 2007, with about 250 delegates. Delegates will be mainly professionals in the product development area (designers, engineers, technicians).
For more information on the conference navigate:
http://www.damec.ct.utfpr.edu.br/iispgdp/
Economy: World Bank Loans Cheaper and More Agile
The World Bank officially announced that it will reduce loan costs and simplify management procedures for loans to middle income countries in Latin America like Brazil, Argentina or Mexico, or creditworthy low-income countries such as El Salvador.
With the 0.4 percent reduction, the interest rates for World Bank loans equal the LIBOR rate and, in some cases, the LIBOR rate plus ten basic points. The interest rate, whose increase was spurred by the 1998 Asian crisis, will thus return to pre-1998 levels.
“Reducing loan costs is the result of the improvements made by countries in the region in their financial standing,” explained Augusto de la Torre, World Bank Chief Economist for Latin America and the Caribbean. “The World Bank is a multilateral cooperative of partners including middle-income nations. This interest rate cut on loans and the simplification of the procedures represents a response to demand coming by this group of countries.”
By simplifying its procedures and reducing pricing, the institution is delivering on the commitment made in September 2006 during the Annual World Bank Meetings in Singapore. In response to requests made by developing countries, the World Bank promised to revise loan pricing, including those in social and infrastructure sectors, which often do not attract private sector funding.
This measure eliminates a previous fee structure, which was among the most complicated in multilateral development lending, as it included six elements to determine the cost of a loan. The former structure has been replaced by a small front-end fee and a reduced interest rate spread.
The Executive Board of Directors of the World Bank Group took another crucial step this week with the decision to contribute a record sum of US$3.5 billion of its own income to grants and credits for the world’s poorest countries while completing the 15th replenishment of the International Development Agency (IDA), the World Bank agency that supports the poorest countries.
This contribution is more than double the US$1.5 billion pledged by the WBG for IDA 14 in 2005. In Latin America, recipient countries include Bolivia, Haiti, Honduras, Guyana and Nicaragua.
For more information click here and read the article in Worldbank website
With the 0.4 percent reduction, the interest rates for World Bank loans equal the LIBOR rate and, in some cases, the LIBOR rate plus ten basic points. The interest rate, whose increase was spurred by the 1998 Asian crisis, will thus return to pre-1998 levels.
“Reducing loan costs is the result of the improvements made by countries in the region in their financial standing,” explained Augusto de la Torre, World Bank Chief Economist for Latin America and the Caribbean. “The World Bank is a multilateral cooperative of partners including middle-income nations. This interest rate cut on loans and the simplification of the procedures represents a response to demand coming by this group of countries.”
By simplifying its procedures and reducing pricing, the institution is delivering on the commitment made in September 2006 during the Annual World Bank Meetings in Singapore. In response to requests made by developing countries, the World Bank promised to revise loan pricing, including those in social and infrastructure sectors, which often do not attract private sector funding.
This measure eliminates a previous fee structure, which was among the most complicated in multilateral development lending, as it included six elements to determine the cost of a loan. The former structure has been replaced by a small front-end fee and a reduced interest rate spread.
The Executive Board of Directors of the World Bank Group took another crucial step this week with the decision to contribute a record sum of US$3.5 billion of its own income to grants and credits for the world’s poorest countries while completing the 15th replenishment of the International Development Agency (IDA), the World Bank agency that supports the poorest countries.
This contribution is more than double the US$1.5 billion pledged by the WBG for IDA 14 in 2005. In Latin America, recipient countries include Bolivia, Haiti, Honduras, Guyana and Nicaragua.
For more information click here and read the article in Worldbank website
Dedini to install plant for Austcane in Australia.
Brazilian company DEDINI, a leading manufacturer of distilleries for ethanol production from sugar-cane, has been retained by Australian firm AUSTCANE to develop and install a plant with a capacity to process 1.7 million tonnes of sugar-cane per year.
DEDINI is currently manufacturing 47 plants for projects in Brazil and abroad, six of them by a partnership between the Getulio Vargas Fondation EMBRAPA and ESALO (a leading school of agriculture). The initiative belongs to Roberto Rodrigues, a former minister of agriculture, and courses will be taught at three facilities, in São Paulo, Piracicaba and Campinas.
DEDINI is currently manufacturing 47 plants for projects in Brazil and abroad, six of them by a partnership between the Getulio Vargas Fondation EMBRAPA and ESALO (a leading school of agriculture). The initiative belongs to Roberto Rodrigues, a former minister of agriculture, and courses will be taught at three facilities, in São Paulo, Piracicaba and Campinas.
Retail sales grew 9.5% in Brazil
A survey conducted by Serasa, a company that specializes in analyses for backing up credit and business support decisions, indicates that retail sales increased by 9.5% in Brazil from January until September, compared with the same period of last year.
According to the survey, sales by specialized retail stores, such as electric and electronic appliance, vehicle, and construction material stores grew 12.2%. Sales by hypermarkets, supermarkets, and food and beverages retail sales rose by 6.9%.
Sales have also recorded a 7.7% increase in September in comparison with the same month of 2006. The specialized retail sector led the increase, with a 9.7% growth. The volume of sales by hypermarkets, supermarkets, and retail sales of food and beverages grew by 5.9%.
According to the Serasa, contributing factors to the performance include credit expansion, longer financing terms, lower interest rates, higher formal employment rates, lower default rates, and an increased salary mass.
For more information click here and read the article in ANBA website
According to the survey, sales by specialized retail stores, such as electric and electronic appliance, vehicle, and construction material stores grew 12.2%. Sales by hypermarkets, supermarkets, and food and beverages retail sales rose by 6.9%.
Sales have also recorded a 7.7% increase in September in comparison with the same month of 2006. The specialized retail sector led the increase, with a 9.7% growth. The volume of sales by hypermarkets, supermarkets, and retail sales of food and beverages grew by 5.9%.
According to the Serasa, contributing factors to the performance include credit expansion, longer financing terms, lower interest rates, higher formal employment rates, lower default rates, and an increased salary mass.
For more information click here and read the article in ANBA website
Brazil inflation slows in mid-Oct
Brazilian inflation slowed in the month to mid-October as price gains in food including dairy products moderated, official statistics showed. The government's statistics agency IBGE said on Wednesday Brazil's benchmark IPCA inflation index rose 0.24 per cent in the month to mid-October, slowing from a 0.29 percent increase in the month through mid-September.
Still, the inflation figure was higher than the 0.21 percent median forecast of 17 economists surveyed by Reuters. The estimates ranged from 0.20 percent to 0.22 percent. The so-called IPCA-15 tracks prices from around the 15th of one month to the 15th of the next.
The central bank, which has an inflation target this year of 4.5 per cent, uses the IPCA as a guide when setting interest rates, and the inflation gauge is indexed to over $120 billion worth of Brazilian government bonds. In the 12 months through mid-October, the IPCA inflation clocked 4.15 per cent and the index rose 3.4 per cent since the start of the year, the IBGE said.
Foodstuffs and beverages price group had a 0.54 percent rise after a 0.87 per cent increase in the previous four-week period. But the price of beans, one of Brazil's main dietary staples, rose sharply, over 8 percent. Fruit prices soared 8.78 perc ent after 0.09 per cent, making the biggest contribution to the index' rise.
Milk prices had a considerable drop, the IBGE said. Fuel and electricity prices also fell. At the end of August, the federal government had 218.79 billion reais ($121.15 billion) of outstanding 6 per cent coupon bonds linked to the IPCA inflation index, according to Central Bank and Treasury data. The bonds pay a coupon every six months and have their nominal value adjusted according to the IPCA index.
Source: The Economic Times
Still, the inflation figure was higher than the 0.21 percent median forecast of 17 economists surveyed by Reuters. The estimates ranged from 0.20 percent to 0.22 percent. The so-called IPCA-15 tracks prices from around the 15th of one month to the 15th of the next.
The central bank, which has an inflation target this year of 4.5 per cent, uses the IPCA as a guide when setting interest rates, and the inflation gauge is indexed to over $120 billion worth of Brazilian government bonds. In the 12 months through mid-October, the IPCA inflation clocked 4.15 per cent and the index rose 3.4 per cent since the start of the year, the IBGE said.
Foodstuffs and beverages price group had a 0.54 percent rise after a 0.87 per cent increase in the previous four-week period. But the price of beans, one of Brazil's main dietary staples, rose sharply, over 8 percent. Fruit prices soared 8.78 perc ent after 0.09 per cent, making the biggest contribution to the index' rise.
Milk prices had a considerable drop, the IBGE said. Fuel and electricity prices also fell. At the end of August, the federal government had 218.79 billion reais ($121.15 billion) of outstanding 6 per cent coupon bonds linked to the IPCA inflation index, according to Central Bank and Treasury data. The bonds pay a coupon every six months and have their nominal value adjusted according to the IPCA index.
Source: The Economic Times
Exports: New incentive to Brazilian machinery exports
The Brazilian Export and Investment Promotion Agency (Apex) and the Brazilian Machinery Manufacturers Association (Abimaq) have signed one more agreement for promotion of capital goods, according to information disclosed October 23 by the Apex. According to the agency, the objective is to expand annual exports of the companies from the US$ 123.5 million of 2006 to US$ 142 million in 2010.
For this reason, both organisations are going to invest US$ 17.2 million in commercial promotion actions in 2009. The agreement, according to the Apex, forecasts participation in 21 fairs abroad and the promotion of eight Buyer Projects, where importers are invited to come to Brazil to visit and negotiate with national companies.
The agreement also forecasts eight Sales Projects, which are trade missions promoted abroad, and also Image Projects, in which foreign journalists are invited to visit the country to learn about the machinery and equipment productive chain.
"With the signing of this project we plan to show that Brazil is a trustworthy supply option, with quality products," stated Apex president Alessandro Teixeira, in a press statement.
This is the 16th agreement of the kind between both organisations and, according to Abimaq president Luiz Aubert Neto, is the largest of all with regard to values involved and to the duration. During the execution of the project, buyers want to attract at least another 42 companies to the 74 that already participate in joint actions.
The new agreement will also extend the international marketing campaign that is already being developed by both institutions, under slogan "We know how". The objective is to promote the country image as a producer of capital goods.
For more information click here and read the article in ANBA website
For this reason, both organisations are going to invest US$ 17.2 million in commercial promotion actions in 2009. The agreement, according to the Apex, forecasts participation in 21 fairs abroad and the promotion of eight Buyer Projects, where importers are invited to come to Brazil to visit and negotiate with national companies.
The agreement also forecasts eight Sales Projects, which are trade missions promoted abroad, and also Image Projects, in which foreign journalists are invited to visit the country to learn about the machinery and equipment productive chain.
"With the signing of this project we plan to show that Brazil is a trustworthy supply option, with quality products," stated Apex president Alessandro Teixeira, in a press statement.
This is the 16th agreement of the kind between both organisations and, according to Abimaq president Luiz Aubert Neto, is the largest of all with regard to values involved and to the duration. During the execution of the project, buyers want to attract at least another 42 companies to the 74 that already participate in joint actions.
The new agreement will also extend the international marketing campaign that is already being developed by both institutions, under slogan "We know how". The objective is to promote the country image as a producer of capital goods.
For more information click here and read the article in ANBA website
Brazil exporters hit by currency get tax breaks
Brazil exporters hit by currency get tax breaks
Brazil's President Luiz Inacio Lula da Silva signed legislation that will grant tax breaks to exporters hit by the strengthening currency.
The real gained 19 percent against the U.S. dollar this year and more than 123 percent since 2002 on strong trade surpluses and high interest rates that attract foreign capital.
As a result, several exporters, including automobile manufacturers, have begun selling less abroad.
The industries to benefit from the law include textiles, shoes, and timber, the presidency said in a statement.
Companies in those sectors will be granted exemptions on social security taxes (PIS and Cofins) charged on capital goods purchases and imports.
They will also have access to a special line of credit totaling 3 billion reais ($1.7 billion).
The law also lowered the threshold for companies to be considered exporters and thereby qualify for existing tax exemptions on purchases of supplies. A company with 60 percent foreign sales is now considered an exporter, down from previously 80 percent. The companies will be exempt from paying IPI, an industrial tax, as well as PIS and Cofins.
Brazilian companies frequently complain that a total tax burden of around 38 percent of gross domestic product erodes their international competitiveness.
Brazil's economy is growing close to 5 percent, faster than in previous years.
For more information click here and read the article in Reuters website
Brazil's President Luiz Inacio Lula da Silva signed legislation that will grant tax breaks to exporters hit by the strengthening currency.
The real gained 19 percent against the U.S. dollar this year and more than 123 percent since 2002 on strong trade surpluses and high interest rates that attract foreign capital.
As a result, several exporters, including automobile manufacturers, have begun selling less abroad.
The industries to benefit from the law include textiles, shoes, and timber, the presidency said in a statement.
Companies in those sectors will be granted exemptions on social security taxes (PIS and Cofins) charged on capital goods purchases and imports.
They will also have access to a special line of credit totaling 3 billion reais ($1.7 billion).
The law also lowered the threshold for companies to be considered exporters and thereby qualify for existing tax exemptions on purchases of supplies. A company with 60 percent foreign sales is now considered an exporter, down from previously 80 percent. The companies will be exempt from paying IPI, an industrial tax, as well as PIS and Cofins.
Brazilian companies frequently complain that a total tax burden of around 38 percent of gross domestic product erodes their international competitiveness.
Brazil's economy is growing close to 5 percent, faster than in previous years.
For more information click here and read the article in Reuters website
Currency: Brazil's Real Rises to Seven-Year High on U.S. Profits, Inflow
Brazil's real rose to a seven-year high as confidence that U.S. corporate profits will grow reassured investors that capital flows to local markets will continue.
The real also got a boost from increased trading volume in the local stock market as Bovespa Holding SA, owner of the Sao Paulo stock exchange, debuted on the bourse today.
The real rose 1.5 percent to 1.7680 reais per dollar. New York time, reaching the strongest since trading at 1.7605 on April 19, 2000. Brazil's currency has gained 21 percent this year, the second-most among the 16 most-actively traded currencies tracked by Bloomberg after the Canadian dollar.
``The real can only gain with the heavy investment flows and the wave of IPOs we've been having here,'' said Adilson Goes, currency trading director in Sao Paulo at Levycam, a Brazilian brokerage. Encouraging earnings news in the U.S. renewed confidence that demand for local financial assets and Brazilian exports will persist, he said.
U.S. stock indexes gained after Microsoft Corp.'s sales exceeded analysts' estimates by more than $1 billion and Countrywide Financial Corp., the largest U.S. mortgage lender, forecast a profit for the fourth quarter, signaling the worst of the subprime lending losses may have passed. U.S. stock benchmarks all rose.
The yield on Brazil's benchmark zero-coupon bonds due in January 2008 was little changed at 11.16 percent, according to Banco UBS Pactual SA.
More than 80 companies have gone public in Brazil since 2005 and another 31 are awaiting approval for IPOs from securities regulator CVM, Bovespa said in its prospectus. This year, there have been 52 initial share sales, the third-biggest total in emerging markets after China and South Korea, Bloomberg data show.
The real held on to gains after the central bank bought dollars in the currency market, part of a strategy to boost international reserves and slow appreciation of the currency, which has gained 61 percent over the past four years.
For more information click here and read the article in Bloomberg website
The real also got a boost from increased trading volume in the local stock market as Bovespa Holding SA, owner of the Sao Paulo stock exchange, debuted on the bourse today.
The real rose 1.5 percent to 1.7680 reais per dollar. New York time, reaching the strongest since trading at 1.7605 on April 19, 2000. Brazil's currency has gained 21 percent this year, the second-most among the 16 most-actively traded currencies tracked by Bloomberg after the Canadian dollar.
``The real can only gain with the heavy investment flows and the wave of IPOs we've been having here,'' said Adilson Goes, currency trading director in Sao Paulo at Levycam, a Brazilian brokerage. Encouraging earnings news in the U.S. renewed confidence that demand for local financial assets and Brazilian exports will persist, he said.
U.S. stock indexes gained after Microsoft Corp.'s sales exceeded analysts' estimates by more than $1 billion and Countrywide Financial Corp., the largest U.S. mortgage lender, forecast a profit for the fourth quarter, signaling the worst of the subprime lending losses may have passed. U.S. stock benchmarks all rose.
The yield on Brazil's benchmark zero-coupon bonds due in January 2008 was little changed at 11.16 percent, according to Banco UBS Pactual SA.
More than 80 companies have gone public in Brazil since 2005 and another 31 are awaiting approval for IPOs from securities regulator CVM, Bovespa said in its prospectus. This year, there have been 52 initial share sales, the third-biggest total in emerging markets after China and South Korea, Bloomberg data show.
The real held on to gains after the central bank bought dollars in the currency market, part of a strategy to boost international reserves and slow appreciation of the currency, which has gained 61 percent over the past four years.
For more information click here and read the article in Bloomberg website
Agribusiness: Agricultural production value grows 2.9%
Brazilian agricultural production generated 2.8 billion Brazilian reais (US$ 1.5 billion) more in 2006 than it did in 2005, an increase of 2.9%, driven mostly by the sugarcane, coffee and orange cultures. The data features in the 2006 Municipal Agricultural Production – Temporary and Permanent Cultures (PAM) survey, disclosed last Wednesday (17th) by the Brazilian Institute for Geography and Statistics (IBGE).
The production value, which corresponds to 62.3 million hectares planted in the country in 2006, totalled 98.3 billion reais (US$ 54.1 billion). The increment occurred in spite of a 3% reduction in planted area compared with the previous year. Nevertheless, the value of the Brazilian agricultural production did not reach the same level as it did in 2004, when a record-high value of 111.2 billion reais (US$ 61.3 billion) was attained.
According to the survey, the best performance was that of sugar cane cultivation. The production volume increased by 8.1% over 2005, and the value obtained from production, of nearly 17 billion reais (US$ 9.3 billion), grew by 29% using the same basis for comparison.
The agricultural analyst at the IBGE, Alfredo Guedes, highlighted the contribution of cane culture to national revenues from agriculture. "Sugarcane crops have been growing in recent years, and 2006 was no exception. It is the second largest culture in terms of value, responsible for 17.3% of the total agricultural production value. Production increased and prices were high as well, contributing to the 2.9% growth."
According to Guedes, the greater value generated by cane culture, which stood at approximately 3.8 billion reais (US$ 2 billion), was a result of the commodity's high prices, which in turn was a consequence of an increased demand in the domestic and foreign markets for the production of alcohol fuel.
The survey also points to a 37.1% expansion in revenues from coffee production, from 2005 to 2006. The increase is a consequence of the full crop year, with the commodity's biennial cycle ending in 2006. Weather conditions and favourable international prices have also contributed for coffee to account for 9.5% of the total national agricultural production value.
On a year-to-year basis, the output of processed coffee grew 20.2%, up from 35.6 million bags of coffee in 2005, to 42.8 million last year. According to Guedes, though, the production increase was in keeping with the expectations for a full crop year, and the differential were the product's better prices, which appreciated due to a greater demand on the international market.
Another highlight was the production of oranges, whose revenues were raised by 33.1%, accounting for 5.4% of the total financial resources generated by Brazilian agriculture. The production volume saw a 1% increase, to reach 18 million tonnes. According to Guedes, though, the greater revenues were due to the raw material's higher price on the foreign market, a consequence of weather problems that affected citric fruit production in the United States, Brazil's main competitor.
In the assessment of the vice-president at the National Agricultural Society (SNA), Joel Naigele, the survey's results attest to the exuberance of Brazilian agricultural production. "I regard the data in a very positive light. Prospects are great, because with each new year, more consumers are becoming part of the market."
Naigele called attention to the diversity of agricultural production, which provides both producers and the country with alternatives whenever a certain product suffers a setback in performance, and there is a need to invest in infrastructure for the sector to continue developing. "Brazilian farmers are the most economic in the world. We will only lose when facing the lack of appropriate infrastructure, such as roads, ports and railways, which constitute the main bottlenecks to Brazilian agricultural production."
The Municipal Agricultural Production survey investigates 63 products of the temporary and permanent national agricultural crops, based on information generated in all of the country's cities. Data about grain, leguminous plants, and oleaginous plants, which are also included in the survey, had already been disclosed in advance by the IBGE in the month of July, pointing to a reduction in the value generated by soy, upland cotton, rice and wheat crops, which were harmed by low product prices in the international market, the appreciation of the Brazilian real against the dollar and, in some cases, drought and frost.
Despite being harmed by pricing, soy had a record-high crop (at approximately 1.2 million tonnes) and continues to be the culture that contributes the most to the Brazilian agricultural production value, as it accounts for 18.8% of the total value, followed by sugarcane (17.3%), maize (10.1%), coffee (9.5%) and orange (5.4%).
For more information click here and read the article in ANBA website
The production value, which corresponds to 62.3 million hectares planted in the country in 2006, totalled 98.3 billion reais (US$ 54.1 billion). The increment occurred in spite of a 3% reduction in planted area compared with the previous year. Nevertheless, the value of the Brazilian agricultural production did not reach the same level as it did in 2004, when a record-high value of 111.2 billion reais (US$ 61.3 billion) was attained.
According to the survey, the best performance was that of sugar cane cultivation. The production volume increased by 8.1% over 2005, and the value obtained from production, of nearly 17 billion reais (US$ 9.3 billion), grew by 29% using the same basis for comparison.
The agricultural analyst at the IBGE, Alfredo Guedes, highlighted the contribution of cane culture to national revenues from agriculture. "Sugarcane crops have been growing in recent years, and 2006 was no exception. It is the second largest culture in terms of value, responsible for 17.3% of the total agricultural production value. Production increased and prices were high as well, contributing to the 2.9% growth."
According to Guedes, the greater value generated by cane culture, which stood at approximately 3.8 billion reais (US$ 2 billion), was a result of the commodity's high prices, which in turn was a consequence of an increased demand in the domestic and foreign markets for the production of alcohol fuel.
The survey also points to a 37.1% expansion in revenues from coffee production, from 2005 to 2006. The increase is a consequence of the full crop year, with the commodity's biennial cycle ending in 2006. Weather conditions and favourable international prices have also contributed for coffee to account for 9.5% of the total national agricultural production value.
On a year-to-year basis, the output of processed coffee grew 20.2%, up from 35.6 million bags of coffee in 2005, to 42.8 million last year. According to Guedes, though, the production increase was in keeping with the expectations for a full crop year, and the differential were the product's better prices, which appreciated due to a greater demand on the international market.
Another highlight was the production of oranges, whose revenues were raised by 33.1%, accounting for 5.4% of the total financial resources generated by Brazilian agriculture. The production volume saw a 1% increase, to reach 18 million tonnes. According to Guedes, though, the greater revenues were due to the raw material's higher price on the foreign market, a consequence of weather problems that affected citric fruit production in the United States, Brazil's main competitor.
In the assessment of the vice-president at the National Agricultural Society (SNA), Joel Naigele, the survey's results attest to the exuberance of Brazilian agricultural production. "I regard the data in a very positive light. Prospects are great, because with each new year, more consumers are becoming part of the market."
Naigele called attention to the diversity of agricultural production, which provides both producers and the country with alternatives whenever a certain product suffers a setback in performance, and there is a need to invest in infrastructure for the sector to continue developing. "Brazilian farmers are the most economic in the world. We will only lose when facing the lack of appropriate infrastructure, such as roads, ports and railways, which constitute the main bottlenecks to Brazilian agricultural production."
The Municipal Agricultural Production survey investigates 63 products of the temporary and permanent national agricultural crops, based on information generated in all of the country's cities. Data about grain, leguminous plants, and oleaginous plants, which are also included in the survey, had already been disclosed in advance by the IBGE in the month of July, pointing to a reduction in the value generated by soy, upland cotton, rice and wheat crops, which were harmed by low product prices in the international market, the appreciation of the Brazilian real against the dollar and, in some cases, drought and frost.
Despite being harmed by pricing, soy had a record-high crop (at approximately 1.2 million tonnes) and continues to be the culture that contributes the most to the Brazilian agricultural production value, as it accounts for 18.8% of the total value, followed by sugarcane (17.3%), maize (10.1%), coffee (9.5%) and orange (5.4%).
For more information click here and read the article in ANBA website
Minerals: Brazil's Booming Mining Industry
The mining industry anticipates that $28 billion will be invested on equipment alone in Brazil during the next four years. Demand for Brazil's abundant minerals, notably iron ore and bauxite, have been increasing far faster than the historic rate during the past five years, largely due to the rapid growth of the Chinese economy. With demand stronger than supply, the price of iron ore has quadrupled in the past five years. Ore can now be placed at ports for a quarter of its sale price.
Just prior to its privatization in 1997, leading mining company Vale do Rio Doce (CVRD) acquired the assets of several other important ore producers. As a result, it was responsible for 90% of the 245 million tonnes of ore exported from Brazil in 2006, 50% more than five years ago, which generated export earnings of almost $9 billion. CVRD plans to increase ore output by 50% in the next four years, in an attempt to keep pace with demand now increasing by 10 to 11% each year, four times the average of the past 25 years. The company will also produce more of most of the other non-ferrous metals it also mines or processes and is making a series of important acquisitions abroad:
The company paid $18 billion for Canadian-based International Nickel, which exports a large proportion of its output to China.
CVRD has bought coal mines in Australia, China and Mozambique, and iron ore mines in China, India and Australia.
It is to invest in a phosphate mine in Peru and in a potassium project in Argentina.
The international companies still producing ore in Brazil, which include RTZ and BHP Billiton, are also stepping up production:
Anglo-American, an important producer of gold in Brazil, has joined forces with the local MMX to develop new mines.
The Hong Kong based Noble group plans to invest $300 million in Brazil this year, most on buying iron ore deposits in the northeast.
Several of Brazil's steel companies, notably Companhia Siderurgica Nacional, are also to increase output at their mines, both to ensure an increasing degree of self-sufficiency and to participate in the booming export business.
Arcelor-Mittal, an important customer for Brazilian ore, plans to open mines of its own in the country.
Estimates vary greatly as to how much longer China's steel industry will continue to grow at the current rate of 11 to 12% annually, which has propelled China's share of Brazilian ore exports from 5% until the mid-1990s to a third last year.
Pessimists suggest this growth rate will only last for about three more years; should this be the case, many of the investments now planned or under way could prove to have been unwise.
Others think that China's growth can be compared with the recovery of the economies of several European countries and Japan in the years following World War II. It could thus continue for at least another decade, or until such time as the gap between it and the more advanced countries narrows.
Most companies seem to take the latter view.
For more information click here and read the article in Forbes website
Just prior to its privatization in 1997, leading mining company Vale do Rio Doce (CVRD) acquired the assets of several other important ore producers. As a result, it was responsible for 90% of the 245 million tonnes of ore exported from Brazil in 2006, 50% more than five years ago, which generated export earnings of almost $9 billion. CVRD plans to increase ore output by 50% in the next four years, in an attempt to keep pace with demand now increasing by 10 to 11% each year, four times the average of the past 25 years. The company will also produce more of most of the other non-ferrous metals it also mines or processes and is making a series of important acquisitions abroad:
The company paid $18 billion for Canadian-based International Nickel, which exports a large proportion of its output to China.
CVRD has bought coal mines in Australia, China and Mozambique, and iron ore mines in China, India and Australia.
It is to invest in a phosphate mine in Peru and in a potassium project in Argentina.
The international companies still producing ore in Brazil, which include RTZ and BHP Billiton, are also stepping up production:
Anglo-American, an important producer of gold in Brazil, has joined forces with the local MMX to develop new mines.
The Hong Kong based Noble group plans to invest $300 million in Brazil this year, most on buying iron ore deposits in the northeast.
Several of Brazil's steel companies, notably Companhia Siderurgica Nacional, are also to increase output at their mines, both to ensure an increasing degree of self-sufficiency and to participate in the booming export business.
Arcelor-Mittal, an important customer for Brazilian ore, plans to open mines of its own in the country.
Estimates vary greatly as to how much longer China's steel industry will continue to grow at the current rate of 11 to 12% annually, which has propelled China's share of Brazilian ore exports from 5% until the mid-1990s to a third last year.
Pessimists suggest this growth rate will only last for about three more years; should this be the case, many of the investments now planned or under way could prove to have been unwise.
Others think that China's growth can be compared with the recovery of the economies of several European countries and Japan in the years following World War II. It could thus continue for at least another decade, or until such time as the gap between it and the more advanced countries narrows.
Most companies seem to take the latter view.
For more information click here and read the article in Forbes website
Sport: Brazil will stage 2014 World Cup
Brazil has been named as the host nation for the 2014 football World Cup.
Brazilian president Luiz Inacio Lula da Silva said: "Soccer is more than a sport for us, it's a national passion."
Brazil have won the tournament a record five times and hosted the World Cup once before, in 1950, when they lost 2-1 in the final to Uruguay. It is the first time the World Cup is being held in South America since Argentina hosted, and won, the 1978 tournament.
Brazil is setting aside around £550m to update its stadiums, including the Maracanã in Rio de Janeiro which hosted the 1950 World Cup final. And that money will need to be spent wisely as Fifa's inspection report has identified 18 grounds with more than 40,000 capacity that could host games. These will be whittled down to nine or 10. However, of the 18, four would have to be re-built from scratch and all of the others need to undergo substantial renovation.
Fifa’s president Blatter said, however, that he had been impressed by Brazil's plans for 2014 despite the fact they were the only bidders. "The task was not easy - for us it was a real big challenge to have the same list of requirements and the same conditions for only one candidate," he said. "There was an extraordinary presentation by the delegation and we witnessed that this World Cup will have such a big social and cultural impact in Brazil. This is the country that has given to the world the best football and the best footballers, and they are five times world champions."
Fifa's inspection report added: "Brazil has a rich history of hosting sporting and other international events. "But the standards and demands of the World Cup will far surpass those of any other event staged in the history of Brazil in terms of magnitude and complexity. "The inspection team wants Fifa experts to review the process and progress of host city selection to ensure that adequate financing is committed and secured."
As news filtered through, celebrations broke out in various towns around the country with fireworks and festivities set to continue into the night.
Around 100 people unfurled a green and yellow banner, emblazoned with the words 'The 2014 World Cup is ours', at the foot of the famous Christ the Redeemer statue which overlooks Rio.
For more information click here and read the article in BCC website
Brazilian president Luiz Inacio Lula da Silva said: "Soccer is more than a sport for us, it's a national passion."
Brazil have won the tournament a record five times and hosted the World Cup once before, in 1950, when they lost 2-1 in the final to Uruguay. It is the first time the World Cup is being held in South America since Argentina hosted, and won, the 1978 tournament.
Brazil is setting aside around £550m to update its stadiums, including the Maracanã in Rio de Janeiro which hosted the 1950 World Cup final. And that money will need to be spent wisely as Fifa's inspection report has identified 18 grounds with more than 40,000 capacity that could host games. These will be whittled down to nine or 10. However, of the 18, four would have to be re-built from scratch and all of the others need to undergo substantial renovation.
Fifa’s president Blatter said, however, that he had been impressed by Brazil's plans for 2014 despite the fact they were the only bidders. "The task was not easy - for us it was a real big challenge to have the same list of requirements and the same conditions for only one candidate," he said. "There was an extraordinary presentation by the delegation and we witnessed that this World Cup will have such a big social and cultural impact in Brazil. This is the country that has given to the world the best football and the best footballers, and they are five times world champions."
Fifa's inspection report added: "Brazil has a rich history of hosting sporting and other international events. "But the standards and demands of the World Cup will far surpass those of any other event staged in the history of Brazil in terms of magnitude and complexity. "The inspection team wants Fifa experts to review the process and progress of host city selection to ensure that adequate financing is committed and secured."
As news filtered through, celebrations broke out in various towns around the country with fireworks and festivities set to continue into the night.
Around 100 people unfurled a green and yellow banner, emblazoned with the words 'The 2014 World Cup is ours', at the foot of the famous Christ the Redeemer statue which overlooks Rio.
For more information click here and read the article in BCC website
Featuring: Ride of your life under Brazil's Iguazu Falls
It was the climax of a visit to the amazing Iguazu Falls in South America where the unwary tourist can get an up-close and very personal view.
Iguazu, a Guarani word meaning "Great Water", splits Brazil and Argentina and each side has a series of fascinating walks.
But the ultimate attraction has to be the water-ride. There are two cruises available to get a closer look. The first takes tourists along the river, through the rapids and within good camera range of the main Devil's Throat Fall.
The second follows the same path except on the return it goes one step further and the boat and passengers finish under the roaring water. However, before the final move forward, the passengers are told to put anything of value, such as cameras, watches, notebooks, wallets and shoes, inside waterproof bags provided by the crew. They were the only dry items left after we took the plunge.
Iguazu makes the world-publicised Niagara Falls look like a dripping tap. The South American natural marvel is much taller, half as high again as Niagara, four times as wide and in full peak rainy season from November to March carries seven times as much water - over ten million litres a second.
There are a total of 275 falls spread in a horseshoe shape over 6000 metres of the deep-flowing Iguazu River and were the result of a volcanic eruption centuries ago. The area is divided by various islands and is a UNESCO World natural heritage site.
For the tourist, there are jungle trails, bird watching and reptiles with the Brazil area providing panoramic views from on high and Argentina allowing the traveller to get closer.
First class accommodation is available within walking distance of the main Falls while those booking at the nearby town have coach transport available.
It is only a short flight from Rio de Janeiro or Buenos Aires and a two-day stay allows plenty of time to take in all of the attractions.
The walkways can be easily negotiated by the average tourist but there are more difficult trails to follow for the tourist who likes a challenge while an elevator takes leg-weary travellers to a cliff-top vantage point for a panoramic view and close to nearby hotels and their coach pickup point.
Day One was planned for the lower circuit on the Argentina side. The coach duly deposited its group of passengers on to a small open train which ended at the start of the downhill trail. A 1200-metre walk included a catwalk which spanned quieter portions of the river and ended over the roaring, swirling water at the massive Devil's Throat.
Called Gargantua del Diablo by locals, clouds of spray and mist from Devil's Throat rises up to 35 metres in the air and the ever-present breeze can quickly douse the unprepared tourist. The spray also creates a constant spectrum of spectacular rainbows.
Devil's Throat is a combination of 14 cataracts which drop 130 metres and the walkway platform allows excellent photographic opportunities of the Fall and the river.
Other prominent falls are San Martin, Bossetti and Bernabe Mendez, again with easy walking access to lookout points. Despite the number of falls, it is never tiring looking at what nature has created.
Day Two involved the Upper Circuit on the Brazilian side which features marvellous scenes and the biggest floras and fauna reservation in Brazil. The group was divided into those taking the boat ride and others preferring the trail. The travellers were fortunate to have fine weather but with temperatures in the mid-to-high 30s, it was humid and hot.
The first Spanish explorer to see the Falls was Alvar de Vaca in 1541 and the area embraces the remaining greater part of the Atlantic Forest of Brazil. The Iguazu national park was established in 1939 with more than 600,000 hectares of preserved areas and another 400,000 of natural forests.
A huge hydro electric power plant, satisfying almost 40 per cent of the power needs of Brazil and Argentina was completed jointly in 1991 by Brazil and Paraguay. Downriver, the tourist can photograph where the Iguazu and Parana rivers meet to form the border of Argentina, Brazil and Paraguay.
Iguazu is truly a natural wonder of the world.
Source: www.news.com.au
Iguazu, a Guarani word meaning "Great Water", splits Brazil and Argentina and each side has a series of fascinating walks.
But the ultimate attraction has to be the water-ride. There are two cruises available to get a closer look. The first takes tourists along the river, through the rapids and within good camera range of the main Devil's Throat Fall.
The second follows the same path except on the return it goes one step further and the boat and passengers finish under the roaring water. However, before the final move forward, the passengers are told to put anything of value, such as cameras, watches, notebooks, wallets and shoes, inside waterproof bags provided by the crew. They were the only dry items left after we took the plunge.
Iguazu makes the world-publicised Niagara Falls look like a dripping tap. The South American natural marvel is much taller, half as high again as Niagara, four times as wide and in full peak rainy season from November to March carries seven times as much water - over ten million litres a second.
There are a total of 275 falls spread in a horseshoe shape over 6000 metres of the deep-flowing Iguazu River and were the result of a volcanic eruption centuries ago. The area is divided by various islands and is a UNESCO World natural heritage site.
For the tourist, there are jungle trails, bird watching and reptiles with the Brazil area providing panoramic views from on high and Argentina allowing the traveller to get closer.
First class accommodation is available within walking distance of the main Falls while those booking at the nearby town have coach transport available.
It is only a short flight from Rio de Janeiro or Buenos Aires and a two-day stay allows plenty of time to take in all of the attractions.
The walkways can be easily negotiated by the average tourist but there are more difficult trails to follow for the tourist who likes a challenge while an elevator takes leg-weary travellers to a cliff-top vantage point for a panoramic view and close to nearby hotels and their coach pickup point.
Day One was planned for the lower circuit on the Argentina side. The coach duly deposited its group of passengers on to a small open train which ended at the start of the downhill trail. A 1200-metre walk included a catwalk which spanned quieter portions of the river and ended over the roaring, swirling water at the massive Devil's Throat.
Called Gargantua del Diablo by locals, clouds of spray and mist from Devil's Throat rises up to 35 metres in the air and the ever-present breeze can quickly douse the unprepared tourist. The spray also creates a constant spectrum of spectacular rainbows.
Devil's Throat is a combination of 14 cataracts which drop 130 metres and the walkway platform allows excellent photographic opportunities of the Fall and the river.
Other prominent falls are San Martin, Bossetti and Bernabe Mendez, again with easy walking access to lookout points. Despite the number of falls, it is never tiring looking at what nature has created.
Day Two involved the Upper Circuit on the Brazilian side which features marvellous scenes and the biggest floras and fauna reservation in Brazil. The group was divided into those taking the boat ride and others preferring the trail. The travellers were fortunate to have fine weather but with temperatures in the mid-to-high 30s, it was humid and hot.
The first Spanish explorer to see the Falls was Alvar de Vaca in 1541 and the area embraces the remaining greater part of the Atlantic Forest of Brazil. The Iguazu national park was established in 1939 with more than 600,000 hectares of preserved areas and another 400,000 of natural forests.
A huge hydro electric power plant, satisfying almost 40 per cent of the power needs of Brazil and Argentina was completed jointly in 1991 by Brazil and Paraguay. Downriver, the tourist can photograph where the Iguazu and Parana rivers meet to form the border of Argentina, Brazil and Paraguay.
Iguazu is truly a natural wonder of the world.
Source: www.news.com.au
Subscribe to:
Posts (Atom)
