Welcome to the ABCC NEWS webpage. Find here information about the ABCC, relevant articles to the promotion of bilateral trade and culture and highlights on business opportunities.

Friday, 29 February 2008

Special Edition

Minas Gerais Official Trade Mission to Australia 2008
17th to 23rd February 2008

The ABCC and the Câmara Oficial de Comércio Brasil-Australia hosted the official visit of the Brazilian delegation conducted by the Vice-Governor of the Minas Gerais State, the Honorable Antonio Augusto Anastasia. The delegation comprised of FIEMG (Federation of Industries of Minas Gerais, SEBRAE (Department of Small Business Development), COPASA (Water and Sanitation Board of Minas Gerais), members of the Minas Gerais State Parliament, State Department of Science and Technology, private and public Universities as the Federal University of Minas Gerais, Federal University of Lavras and UNA University and companies in ICT, software, mining, energy, furniture & design and even a football club amongst others.

The State of Minas Gerais is the 2nd most important State in Brazil, accounting for 11% of the Brazilian GDP and is the largest beef breeder and exporter of iron ore and steel in Brazil. It also accounts for 1/3 of the Brazilian energy generation and has some of the most important Universities. It has close to 20 million inhabitants and plays a significant part in the Brazilian economy.

The delegation visited Sydney, Melbourne and Brisbane where seminars were co-hosted with the support of COALAR (Council on Australia Latin America Relations) as well as the NSW Department of State and Regional Development, Invest Victoria and Trade Queensland.

The objective of the visit according to the Vice-Governor of MG was to strengthen the institutional and governmental relationship between the State of Minas Gerais and Australia, establish business partnerships for the Brazilian delegates and promote trade and commerce opportunities.

The visit was fundamental to raising awareness of the market potential and to the political, economical and social developments between the countries, promoting direct linkages between business-to-business, business-to-government and government-to-government outcomes and relationships.


Trade Mission HIGHLIGHTS:


SYDNEY : 17th to 18th February 2008

Environment and Climate Change:
Vice-Governor Anastasia discussed climate change and sustainability issues with State Minister Koperberg, as it presents a serious concern for the State of Minas Gerais as the leading mining state in Brazil. New developments are taking place to improve sustainability and diminish carbon emissions by the mining sector in Minas Gerais.

Plantar Group:
Established in Minas Gerais in 1967, represented by Carbon Credit Business Development Manager, Mr. Fabio Marques, the company is an example of successful implementation of innovative solutions to reduce environment hazard promoting the use of renewable sources of energy (charcoal from planted forests) instead of fossil or non-renewable sources (coal coke or charcoal from non-renewable native forests) in the pig iron industry in the State of Minas Gerais. Mr. Marques explained that Plantar’s goal is to produce the world’s cleanest primary iron, by using planted biomass - established in accordance with strict social and environmental principles; and to generate carbon credits in compliance with the Clean Development Mechanism - CDM (Article 12 of the Kyoto Protocol).

Green Party:
The Hon. Mr. Tiago Ulisses MP, Member of Parliament and Minas Gerais State Leader of “Partido Verde” (Green Party), discussed issues related to climate change and global warming with the leader of NSW Green Party, Ms Lee Rhiannon MLC at the NSW Parliament House emphasizing the importance in exchanging information regarding policy within their political parties.

Trade and Commerce:
Accompanied by Minas Gerais International Relations Manager Mr Helder Guimarães, Chief of Staff Mr. Gustavo Magalhães, Consul-General of Brazil Mr. Kywal de Oliveira, Vice-Governor Anastasia discussed trade links and opportunities between Minas Gerais and NSW with State Minister Ian McDonald and Mr. Adrian Wood, Senior Manager, International Business Relations at the Department of State & Regional Development (DSRD).

The meeting followed the ABCC opening seminar at the DSRD office in Sydney where FIEMG’s International Relations Manager, Mr. Carlos Abijaodi’s presentation focussed on areas of opportunities in imports, exports and partnerships to be explored in the manufacturing sector.

With a membership of over 70,000 companies and industries, FIEMG supports and assists Minas Gerais businesses to optimize international links with a comprehensive export program similar to those of the DSRD in NSW.

Ms. Margarida Fantoni, head of SEBRAE, the Department for Small Business Development has exchanged information with the DSRD as to the structure of both institutions and explained the importance of SEBRAE in the development of small and medium size businesses whishing to compete in the international arena.

Ezequiel de Melo Campos (Regional Director – Brasil-Australia Chamber of Commerce), Cristina Talacko (ABCC President), The Hon. Prof. Antonio Augusto Anastasia (Vice-Governor of Minas Gerais), The Hon. Lafayette Andrada MP(Member for Minas Gerais Parliament), Helio Marchi (President – Brasil-Australia Chamber of Commerce)

Carlos Abijaodi (International Relations Manager – FIEMG)

Margarida Souto Fantoni – Director of Department for Small Business Development - SEBRAE


Kywal de Oliveira (Consul-General of Brazil), Cristina Talacko (ABCC President), Adrian Wood (Senior Manager, Int. Business Relations DSRD) The Hon. Antonio Anastasia (Vice Governor of Minas Gerais)

The Hon. Lafayette Andrada MP(Member for Minas Gerais Parliament), Flavio dos Santos (Federal Centre of Technological Education of MG), The Hon. Antonio Anastasia (Vice-Governor of MG), Kywal de Oliveira (Consul-General of Brazil), Prof. Ronaldo Pena (Chancellor – Federal University of MG), Prof. Elias Fialho (Vice-Chancellor – Federal University of Lavras) and Adonias Costa da Silveira (INATEL – National Institute of Telecommunications)

Melbourne: 18th to 19th February 2008

Ministerial Meetings:
At the Department of Investment in Victoria, the Hon. Theo Theophanous, Minister for Industry and Trade, Information and Communication Technology and Major Projects has welcomed the Vice-Governor and his delegation making special mention to cooperation and collaboration in the sectors of biotechnology, ICT, dairy technology, education and sport. Present were Mr. Telmo Languiller, Parliamentary Secretary for Human Resources who has been working towards a closer relationship with South American countries through MOUs in scientific collaboration and exchanged knowledge in the fields of agricultural and biological sciences and related technologies and Mr. Bernard Wheelahan (Chairman for COALAR).

The official delegation also visited the Victoria Parliament House received by Victoria’s Deputy Premier the Hon. Robert Hulls MP, Ms at a Luncheon hosted by the Hon Robert Smith, President of the Legislative Council and participated at a meeting with the Hon Joe Helper MP to discuss collaboration in the agricultural sector.

The Hon. Telmo Languiller MP (Parliamentary Secretary for Human Resources), The Hon. Antonio Anastasia MP (Vice-Governor - MG) and The Hon. Joe Helper MP (Minister for Agriculture and Small Business).

Visit to Victoria Parliament - Cristina Talacko(ABCC), The Hon. Lafayette Andrada MP (Member for MG Parliament), The Hon. Jenny Lindell MP (Speaker - Legislative Assembly), The Hon. Robert Smith MP (President - Legislative Council), The Hon Antonio Anastasia (Vice-Governor MG), The Hon. Rob Hulls MP (Deputy Premier of Victoria), The Hon. Glaucia Brandao MP (Member for MG Parliament) and the Hon. Tiago Ulisses MP (Member for MG Parliament).

Vice-Governor Anastasia, Bernard Wheelahan (COALAR Chairman), Cristina
Talacko (ABCC) , The Hon. Theo Theophanous MP

Seminar at Victoria Investment Center:
Vice-Governor Anastasia, The Hon. Theo Theophanous MP and Telmo Languiller MP

Seminar at Victoria Investment Center:
Cristina Talacko (ABCC President)

Research Collaboration:
The University of Lavras (UFLA), one of the most important agricultural universities in Brazil located in south Minas Gerais State and renowned for research programs in biosciences and information technology was represented at the delegation by its Vice-Chancellor, Dr. Elias Tadeu Fialho who holds a PhD from Purdue University and is a Professor on Pig Production at UFLA.
Dr Fialho visited La Trobe University where he met with Professor German Spangenberg, Executive Director at the Biosciences Research Division of the Victorian Department of Primary Industries (DPI), Director of the Plant Biotechnology Centre and Professor with the Department of Botany at La Trobe University. Discussions culminated with an invitation to the UFLA by La Trobe to sign an agreement in research collaboration in the next few months where the parties commit to the development of joint activities, which will lead to an expansion of co-operation in scientific areas.

Professor Elias Fialho (Lavras University) and Dr Spangenberg ( La Trobe University)

Links in Education:
The education delegates visited the Melbourne University and RMIT. UNA University, the largest and fastest growing private University in the State of Minas Gerais had discussions with a number of Universities seeking to establish partnerships to develop student exchange programs, further interaction between UNA and Australian academic bodies and corporate relations with Australian enterprises concerning market and foreign affairs between Australia and Brazil. Mr. Daniel Faccini Castanho, Vice President of UNA is also interested in initiatives towards environmental responsibility and corporate sustainability.


BRISBANE: 20th to 22nd February 2008


Memorandum of Understanding between Queensland and Minas Gerais States:
As result of the long-term friendship between QLD and MG States, following many trade and official visits by the Queensland Government representatives to Minas Gerais, both States represented by Vice –Governor Anastasia and the Hon. John Mickel MP, Minister for Transport, Trade, Employment and Industrial Relations have signed on the 23rd February 2008 an MOU which will provide a strong foundation to build links and collaboration between the States.

Since 2001, the Queensland Government has developed strategic relationships in key markets in Latin America, including Brazil, which have helped deliver in excess of A$110 million in export income from knowledge-intensive mining goods and services including equipment, technologies and services. Brazilian investment in Queensland has also been expanding with CVRD, the world’s second largest diversified mining company in market capitalization, establishing its international coal HQ in Brisbane. Over the past four years, Queensland has been involved in a large number of activities with the State of Minas Gerais, particularly in the areas of mining, the environment and training and education. Brazil is Queensland’s 12th largest merchandise export destination and the largest source market in Latin America for students. As at November 2007, there were 3517 Brazil students enrolled to study in Queensland. Over the last 5 years, the number of Brazil students studying in Queensland has grown on average by 24%.

According to Minister John Mickel, the Queensland – Brazil trading relationship will be even stronger with the Joint Declaration of Cooperation and will promote cooperation in the sectors of mining related industries, education and training, and infrastructure including airport infrastructure.

Memorandum of Understanding between Queensland Roar FC and Atlético Mineiro FC:
Queensland Roar signed an agreement with the Atletico Mineiro Football Club of Minas Gerais to facilitate cooperation across a number of areas including training, player loans and transfers, cross promotional activities, and the exchange and development of sports medicine, physiology, fitness training techniques, administration methods and information.

The Queensland Government recently announced a sponsorship deal with Queensland Roar, which sees the State’s premier football club as Queensland ambassadors for multiculturalism. With this important agreement with Atletico Mineiro, Queensland Roar is helping promote multicultural Queensland in multicultural Brazil.

Another highlight of the Minas Gerais visit to Brisbane was to meeting with Vice-Governor Anastasia accompanied by His Excellency Fernando de Mello Barreto, Brazilian Ambassador to Australia with Deputy Premier Hon. Paul Lucas MP, at his ministerial office discussing the synergies between the States in the areas of renewable energy, ethanol and bio fuel production and technology, and the importance in collaborating as partners.

Vice-Governor Anastasia and Minister John Mickel

Alexandre Faria (International Relations Director - Atletico Mineiro
FC), Vice-Governor Anastasia and Lawrence Oudendyk (CEO – Queensland Roar FC)


Cristina Talacko (ABCC President), Vice Governor Anastasia , Frank
Farina (Queensland Roar’s head coach), Ambassador Fernando de Mello Barreto



Luncheon hosted by Vale Australia
Marcelo Matos (Vale), Fernando Nobrega (CFO Vale), Cristina Talacko (ABCC

President), Daniel Castanho (UNA University), Claudia Jarjoura (ABCC Executive Secretary, Fabio Marques (Plantar Group)


Trade Queensland Business Forum:
A series of speakers from the Queensland and Minas Gerais Government took place at the Seminar: “Trade Queensland Business Forum” with the participation of Mr Gary Fenlon MP, Parliamentary Secretary to the Minister for Transport, Trade, Employment and Industrial Relations, Mr John Strano (Executive Director, Manufacturing and Investment), Mr Lee Reiken (Department of Mines and Energy) concluded by Luncheon hosted at the Conrad Treasury Hotel.

Other highlights of the visit to Brisbane were the tour and seminar at Trade Coast, round table at Queensland University with Vice-President Professor Trevor Grigg, visit by COPASA (Minas Gerais Water and Santiation Board) to the Wivenhoe Dam and Queensland Water Board Commission and visit to the Suncorp Stadium.


Helio Marchi (COCBA President) and Ambassador Fernando de Mello Barreto

The Hon.Tiago Ulisses MP(Member of Green Party), Vice Governor Anastasia, Cristina
Talacko (ABCC), Ambassador Fernando de Mello Barreto , Gary Fenlon MP,
Denis Garcia (COCBA).

Round Table at Queensland University

Meeting with Deputy Premier Paul Lucas MP and Vice Governor Anastasia


Mining Prospects:
Mr. Renato Ciminelli, executive manager of the Minas Gerais Mining Pool of Excellence and State Secretariat of Science, Technology & Superior Education of Minas Gerais joined the delegation in order to foster a closer relationship between Australia and Brazil in cooperative research and innovation programs.

Mr. Ciminelli, a Chemical Engineer from Penn State University, with an MBA from USP - University of São Paulo and currently finishing his Doctorate Degree at UNICAMP in Geology and Natural Resources Management is seeking to develop closer links with the ABCC in order to set up a Mining Action Group to establish programs between the countries in:
• Preliminary cooperation;
• Innovation promotion at small and medium mining companies;
• New technologies in materials for environmental applications;
• Diagnostics of process improvements demand at the private sector;
• Promotion of international R&D cooperation projects;
• Water in mining – conservation, preservation, process improvement, indicators;
• Management and conservation pilot projects for water basins in mining regions;
• Sustainability as a pillar of the Mineral & Metallurgical Pole of Excellence;
• Legal Studies Institute for Mining and Sustainability;
• Structuring a proposal for Cooperative Research Institutes;
• Promotion of industrial poles anchored on mining and metallurgy.

Mr. Ceminelli is returning to Australia in April to give continuance to the project.

Notes on the Minas Gerais business delegates:
MegaBlack Models: The entrepreneur Leonardo Furman took part at the trade mission aiming at prospecting business for two enterprises: Modelling agency MegaBlack Models and promoting highly acclaimed Brazilian fashion clothing designer Victor Dzenk.
MegaBlack Models is the largest modeling agency in the state of Minas Gerais, promoting events, catwalk fashion shows, publicity campaigns, TV commercials, catalogues and fashion editorials. The agency has starred personalities as the model and MTV presenter Daniela Cicarelli and Miss Brazil Natália Guimarães.
Due to the similarities between Brazilian and Australian fashion markets, MegaBlack Models is willing to have a closer relationship with enterprises in the fashion segment in order to present Brazilian models to Australia as well as Australian models to Brazil.

ATS Informática: Represented by Executive Director Geovanne Teles, ATS is a listed company specializing in software for automation and business management and has established many links in Australia for the development of partnerships in the management of software for mobile telephone vendors. ATM’s most significant customer in Brazil is TIM, the largest vendor in the country as well as being partners with Bematech, the largest manufacturer and supplier of commercial automation solutions, supplying software for stock control and financial management.

CEFET- Federal Centre of Technological Education of MG – Represented by Mr. Flavio dos Santos, CEFET is a federal center of technological education that offers a broad range of courses with a vertical educational system and approximately 15,000 students, similar to the TAFE Institute. CEFET-MG supports various research groups as CPEI, Research Centre in Intelligent Energy Usage, the NASCENTE, an enterprise incubator working on innovative technological products. In the NEAC - Nucleus of Engineering Applied to Competitions - students develop motor cars and airplanes projects, produce prototypes and take part in national and international competitions of SAE Formula and Baja Formula, among others.

Mr. Flavio dos Santos seeks to establish agreements with Australian teaching institutions to promote the necessary interchange of students and teaching personnel.

Madeirense: Owner of Madeirense, one of the largest office furniture and design companies in Brazil, Ms. Elza Cristina Castro took part at the trade mission with the aim to establish a partnership in Australia to exchange technology, know how in design and explore new markets.
Madeirense exports to several countries like United States, Mexico, Porto Rico, Belize, Chile, Angola, Nigeria, Mozambique, Iraq and the Arab Emirates and has a range of customers as the Vale do Rio Doce, Petrobrás, FIAT, Atlantic Railway Center and Mercedes Benz.

Fumsoft – Minas Gerais Software Association: Represented by President Mr Wellington Teixeira, FUMSOFT is a non-profit association fostering software reseacrh, development and production in Minas Gerais.

MMX Mining: Incorporated in 2005, MMX works in mining and logistics, based on integrated systems that range from iron ore mines to plants producing goods with high added value (such as pig iron, hot briquetted iron (HBI) and steel . Represented by General Manager Daniel Santos, MMX is looking into expanding its operations in the Asia-Pacific and Oceania.

SAMARCO Mining: Samarco's Alegria iron ore mine is an open pit operation in Brazil's iron quadrangle, in the State of Minas Gerais. BHP Billiton and CVRD each own 50% of Samarco. In 2005 mining capacity was 20.9 Mt/y and by 2008, with additional mobile equipment, this is expected to rise to 32.8 Mt/y. The mine has reserves of 4 billion tons and as of 2005 has an anticipated mine life of 20 years. Samarco is the second largest pellet exporter in the world.

The Minas Gerais Trade Mission was finalized at an informal Happy Hour offered by the ABCC at the Stamford Hotel, Brisbane.

New Members

The ABCC representatives would like to welcome the following new members
and thank you for your support:

Sydney:

School of Management - University of Western Sydney

Global Events Entreprise

ABC International Services Pty. Ltd.

Spurr Consult Pty Ltd

Mr Ricardo Lemos


Queensland:

DRS Consultoria e Sistemas

Queensland Roar Football Club


South Australia:

Libby Hogarth & Associates

Base Trading Pty. Ltd.

Brazilian exports exceed US$ 160 billion.

Brazilian exports generated US$ 160.65 billion in 2007, exceeding the government forecasts of US$ 155 billion in foreign sales for the year. There was a 16.6% increase in comparison with the value for 2006. Imports, in turn, grew 32%, almost double, and reached US$ 120.61 billion. The figures were disclosed by the Ministry of Development, Industry and Foreign Trade.
With greater expansion of foreign purchases, the Brazilian trade surplus dropped almost 14% in comparison with the total for 2006, to US$ 40.04 billion. Bilateral trade, which is the total of exports plus imports, totalled US$ 281.23 billion in 2007, or 22.7% more than in the previous year. All the figures, except for the trade balance surplus, were record, according to the ministry.
Manufactured products answered to foreign sales of US$ 84 billion, basic products for US$ 51.6 billion and semi-manufactured products for US$ 21.8 billion, and the shipments of all categories grew: 27.6% for basic, 11.4% for manufactured and 11.2% for semi-manufactured products.
Among manufactured products there were more expressive increases in the exports of petrol (52.7%), frozen orange juice (47.3%), aircraft (45%), engines and generators (28%), pumps and compressors (14.5%), plastic polymers (12.2%), cargo vehicles (9.5%) and car parts (7.5%).
In the case of basic products the largest increases were in maize grains (317.2%), chicken meat (43.7%), tobacco leaves (28.9%), crude oil (28.7%), soy chaff (21.8%), soy grain (18%), iron ore (17.5%), pork (17%) and coffee grain (14.9%). Among semi-manufactured products the highlights were for iron alloys (74.7% growth), pulp (21%), leather and hides (16.3%) and cast iron (13.6%).
With regard to destinations, according to the Ministry of Development, there has been an increase in exports to the main economic regions, mainly to the European Union, which posted growth of 29.7%, followed by the other countries in the Mercosur (which includes Argentina, Paraguay and Uruguay, as well as Brazil – 23.6%), Asia (19.4%), Africa (14.6%), the Middle East (10.9%), Eastern Europe (10.3%), the countries in the Latin-American Integration Association (Aladi) except for the ones in the Mercosur (8.5%) and the United States (1.8%).
In the area of imports there has also been growth in all categories of products, with consumer goods in the first place, with growth of 33.2%, followed by capital goods (32.4%), fuels and lubricants (31.6%) and intermediary and raw materials (30.7%).
There has been expansion in the purchases of products from the main regions, like the European Union, which expanded sales to Brazil by 92.1%, Africa (39.1%), Asia (33.3%), the EU (31.8%), the Mercosur (29.2%), the United States (27%), Aladi excluding Mercosur (21.7%) and the Middle East (0.9%).
For more information click here and read the article in ANBA website

Brazil urges rich to fund environment reform

Brazilian President Luiz Inacio Lula da Silva urged developed countries to finance measures by poor nations to protect the environment and reduce emissions that cause global warming.
Lula was speaking to lawmakers from major industrial nations and emerging countries gathered in Brasilia, Brazil's capital, to discuss global warming and give direction to a post-Kyoto Protocol accord.
"Kyoto (protocol) cannot be a fiction piece. It's easy to sign a document and frame it. It's easy for the rich countries to attribute to the poor countries the environmental problems," Lula said in his speech.
"It's necessary to take to the G8 that rich countries consume 80 percent of the natural resources of the planet. They have to pay a trade-off to poor countries for them to conserve the environment," he added.
Lula has argued that rich countries are responsible for 60 percent of greenhouse gas emissions and therefore need to shoulder the responsibility. Yet Brazil is the world's fourth-largest producer of greenhouse gases, virtually all of it as a result of deforestation.
The meeting of 100 lawmakers includes the Group of 8 industrial countries -- Britain, the United States, France, Germany, Italy, Russia, Canada and Japan -- and fast-developing nations China, Brazil, India, South Africa and Mexico.
The Kyoto protocol was aimed at traditionally industrial powers and their emissions and did not target emerging economies like China and India.
The post Kyoto agreement that is being negotiated will require all countries to guarantee cuts in all forms of greenhouse emissions.
For more information click here and read the article in Reuters website

Foreign investment doubles in Brazil

Last year, Brazil received US$ 37.4 billion in foreign direct investment (FDI), double the US$ 18.8 billion of 2006 and a historic record. The figure is included in a preliminary report disclosed by the United Nations Conference on Trade and Development (Unctad) and exceeds forecasts by the Brazilian Central Bank made at the end of 2007, which estimated investment of US$ 35 billion for the year.
"The total broke the previous record, for 2000, when FDI reached US$ 33 billion, as did the volume of investment worldwide break the record for the same year, which had been US$ 1.4 trillion," said to ANBA the president at the Brazilian Society of Transnational Corporations and Economic Globalisation (Sobeet), Luís Afonso Lima. According to the Unctad, the global FDI flow was US$ 1.5 trillion last year. "Both flows, the Brazilian and the global, are related. Our record did not take place by chance, it is also related to what happened worldwide," added Lima.
In Latin America, Brazil was the main receptor of FDI in 2007, ahead of Mexico (US$ 36.7 billion) and Chile (US$ 15.3 billion). Both countries also presented growth of over 90% in the inflow of investment. The funds turned to Brazil even exceeded those turned to developed nations like Japan (US$ 28.8 billion) and Italy (US$ 28.1 billion).
Latin America and the Caribbean received a total of US$ 126 billion, an increase of 50% over 2006. To the Unctad, the growth was boosted by greenfield investment (new and in expansion), rather than cross-border international mergers and acquisitions, one of the main factors for expansion of the flow around the world.
The interest in the region, according to the organisation, was due to the strong regional economic growth and elevated corporate profits on the back of high commodity prices on the international market. Brazil is a great producer of agricultural and mineral commodities and, according to the Unctad, the inflow of investment into the country was largely turned to industries that used local raw materials in production.
Luís Afonso Lima, from Sobeet, mentioned the case of mining and industries connected to the sector, like ironworks. "In this case, Brazil is both an active and a passive agent," he said. That is, the country both receives foreign investment and invests in business abroad. Some examples are Brazilian companies like mining company Vale do Rio Doce and ironworks Gerdau, which have important businesses abroad. At the same time, international groups, like Arcelor Mittal, make heavy investment in Brazil.
According to the Unctad, the FDI flow to developing nations reached US$ 438.4 billion last year, an increase of 15.7% in comparison with 2006. In the list of countries that was disclosed by the organisation yesterday, Brazil was only behind China (US$ 67.3 billion) and Hong Kong (US$ 54.4 billion) among the emerging nations that received the largest volume of funds. Russia also received a larger volume of investment, US$ 48.9 billion, but the Unctad places the country in another category, that of "transition economies".
For more information click here and read the article in ANBA website

Brazil Soybean Yields Beat Forecast

Brazil, the world's second-largest soybean producer, will harvest more than expected this year as farmers limited crop diseases and used gene-modified seeds to grow stronger plants, a forecaster said after a field tour.
``I've never seen yields like that,'' Andre Pessoa, head of Agroconsult, said yesterday after a five-day tour in Brazil's Center-West region, which produces more than half the country's output. ``Just by looking at the crops you can tell productivity is a lot higher than we had expected.''
Brazil will produce more than 50 bags of soybeans per hectare on average, or 45 bushels an acre, up from Agroconsult's January estimate of about 47 bags, Pessoa said. One bag weighs 60 kilograms (132 pounds). Soybean prices jumped 84 percent in the past year to a record today.
The yield gain forecast by Agroconsult would mean a 10 percent increase in total output from last year's record to 64.5 million metric tons, based on the group's estimate of 21.5 million planted hectares. Florianopolis, Brazil-based Agroconsult in January forecast record output of 60.9 million tons this year.
Agroconsult last year correctly predicted soybean output within 100,000 tons as early as March, five month's before the Agriculture Ministry released its final estimate. The forecaster has consistently provided the most-accurate estimates months before the government over the past few years.
Growers in the states of Parana and Mato Grosso are producing at least 50 bags per hectare on average, with output at some farms rising to as much as 60 bags, said Eduardo Bao Zen Tang, head of grains trading at Terra Futuros, the country's biggest commodities brokerage.
``Farmers are paying a lot more attention to productivity,'' he said today in a phone interview from Sao Paulo. ``The progress is very clear.''
Brazilian growers were aided by above-average rainfall in recent months and have managed to stem the spread of a fungal disease known as Asian rust, Pessoa said in the interview in Rio Verde, in the Brazilian state of Goias.
Soybean farmer Roildes Ribeiro Benevides, 38, estimates his 5,000 hectares in Rio Verde will yield 55 bags per hectare this year, compared with 48 bags in the previous harvest, after he eradicated Asian rust from his fields.
``We've learned how to avoid the rust,'' Benevides said. ``This year we didn't give it a chance.''
The use of higher-yielding seeds is driving the increase, said grower Marcos Cassol, 39, whose 10,000 hectares of soybeans are yielding 50 bags per hectare, compared with 45 bags last year.
Planting of gene-modified soybeans in southwestern Goias state will likely reach 80 percent of the crop this year, said Paulo Rocha, a regional representative at Monsanto Co., which produces seeds that resist the company's Roundup weed killer.
Brazilian farmers reaped a record 58.5 million tons of soybeans last year, Agroconsult said in January.
Three teams of Agroconsult researchers are surveying more than 1,500 soybean and corn farms throughout the country between Feb. 17 and March 1. The group will release a new forecast based on the crop tours on March 10.
Soybean futures for May delivery rose 13.5 cents, or 1 percent, to $14.3825 on the Chicago Board of Trade, after earlier reaching a record $14.4025.
The U.S. is the world's biggest soybean producer.
For more information click here and read the article in Bloomberg website

Petrobras and CVRD are two largest companies in Latin America

Brazil has 13 companies among the 25 largest in Latin America, including the first two, Petrobras and Companhia Vale do Rio Doce, according to figures disclosed by consultancy company Economatica. The ranking takes into consideration the market value of traded companies at the end of 2007. In 2006, there were 12 Brazilian companies in the list.
According to the consultancy company, Petrobras reached a market value of US$ 242.7 billion in 2007, against US$ 107.7 billion in 2006, an increase of 125.3%. Mining company Vale is evaluated at US$ 154.5 billion, against US$ 68.6 billion last year, 125.4% more. This value makes Vale the largest private traded company in the region, as Petrobras is a state-owned company.
Compared to the 25 largest companies in North America, Petrobras is in the fifth place, losing only to Exxon Mobil, General Electric, Microsoft and AT&T. Vale is in the 18th position.
In the third place in the list of largest Latin-American companies comes the Mexican America Movil, valued at US$ 104.8 billion, followed by Brazilian banks Bradesco (US$ 61.8 billion) and Itaú (US$ 60 billion), by beverage company Ambev (US$ 44.4 billion) and by the Bank of Brazil (US$ 42.5 billion).
According to Economatica, in 2007, banks overtook telecommunications as the sector with the largest number of companies on the list. In 2007 the value of the 25 main Latin-American companies reached US$ 1.072 trillion, against US$ 706.4 billion in 2006, growth of 51.8%.
The remaining companies on the list are the Mexican Telmex (US$ 36.4 billion), Wal Mart de Mexico (US$ 28.6 billion), Brazilian holding Itausa (US$ 27.4 billion), Argentine ironworks Tanaris (US$ 26.2 billion), Chilean oil company Copec (US$ 23.2 billion), Brazilian ironworks Companhia Siderúrgica Nacional (US$ 23.1 billion), the Mexican Cemex (US$ 21 billion), the Brazilian ironworks Gerdau (US$ 18.2 billion), Brazilian banks Unibanco (US$ 18 billion) and Santander Brasil (17. 6 billion), Argentine oil company YPF (US$ 17 billion), the Mexican Grupo Mexico (US$ 16.6 billion), Carso Global Telecom (US$ 16 billion) and Grupo Modelo (US$ 15.9 billion), then come Brazilian energy company Eletrobras (US$ 15.1 billion), the Mexican Televisa (US$ 13.8 billion), the São Paulo Stock Exchange (Bovespa – US$ 13.6 billion) and the Mexican Femsa (US$ 13.4 billion).
Bovespa, Grupo Mexico, Santander Brasil and CSN entered the ranking in 2007. The stock exchange opened its capital in the second half of last year and generated the largest financial turnover in one day in the history of the Brazilian financial market, according to Economatica. Brazil is the country with the largest number of companies in the ranking, followed by Mexico, Chile and Argentina.
For more information click here and read the article in ANBA website

A country called São Paulo

If the city of São Paulo were a country, it would be among the 50 largest economies in the world: in 47th place, ahead of Arab countries like Egypt, Kuwait and equal to New Zealand. This comparison was made by the Federation of Commerce of the State of São Paulo (Fecomércio-SP), in a study prepared to celebrate the 454 years of the largest city in South America, on January 25th. The organisation took into consideration the GDP of the city in 2005, US$ 102.4 billion – that of Egypt for the same year was US$ 89.3 billion and Kuwait's, US$ 80.8 billion.
"The idea of this analysis is to show the relevance of the city to the world," explained the economic advisor at the Fecomércio, Júlia Ximenes. Another comparison in the study was made considering the United States, the largest economy in the world: the GDP of São Paulo is ahead of that of 22 American states.
"Of course it is necessary to consider the difference between the countries. Comparing a city of 11 million inhabitants in a developing country to New Zealand, a small country, with a strong economy and a small population (4 million) is complicated. But it is valid to show the grandeur of the city," said Júlia. "Using the GDP in dollars is a way of proving this grandeur empirically."
The analysis also shows blatant figures. If, on the one hand, they show that the city of São Paulo has the power of a country, on the other hand they show the abyss between the city and the rest of Brazil. In one of the comparisons, the Fecomércio study shows that the GDP of the city of São Paulo was equal to 94% of the GDP of all the states in the northeast of Brazil. And it is greater than the GDP of all the other Brazilian states, except the state of São Paulo, of which it is the capital. If the city of São Paulo were a state, it would be 37% richer than the state of Minas Gerais.
"The study may be read in two ways. It shows the importance of the city of São Paulo to the economy of Brazil. After all, it is an industrial, commercial, educational and cultural hub, etc. On the other hand, it shows how the country grows in an unequal manner," explained the Fecomércio economic advisor.
In 2005, the year chosen by Fecomércio for the study, São Paulo contributed with at least 4.3% of the GDP of Brazil with regard to taxes, or 90 billion Brazilian reals in taxes. On the other hand, the total budget from the federal government that the city received was 15 billion reals.
The analysis also brings curious figures and numbers about the city. There are 38,000 bars and restaurants in São Paulo. In the city that is marked by Italian colonization, approximately 40,000 pizzas are made per hour. And in the city where there is the largest Japanese colony outside Japan, some 16,800 sushis are made per hour. São Paulo is also known for its immense Arab colony, especially the Syrian-Lebanese. And for the Spanish, Portuguese, etc. The numbers of events are also superlative. There are 70,000 cultural events per year, being 4,800 theatre plays.
Apart from that, the city concentrates nine of the ten largest magazine publishers, three of the five main newspapers and 98 of the 200 largest technology companies in the country and the largest medical and hospital centre in Latin America.
For more information click here and read the article in ANBA website

Agribusiness posted record high trade balance surplus

Brazilian agribusiness exports totalled US$ 58.4 billion in 2007, an increase of 18.2% compared with the previous year. Imports by the sector stood at US$ 8.7 billion, an expansion of 12%, resulting in a surplus of US$ 49.7 billion, the highest ever recorded, according to data disclosed by the Ministry of Agriculture, Livestock and Supply.
According to the Ministry, some of the factors that drove the performance were the growth of global economy in the last five years, which led to a greater international demand for foodstuffs, and the rising price of several commodities. The Ministry also informs that the use of agricultural products for biofuel production has also contributed for the increase in prices.
Foreign sales of soy, the main item in the export basket, totalled US$ 11.38 billion. At a close second came meats, with exports of US$ 11.29 billion, an increase of 30.7% compared with 2006.
The growth, according to the Ministry, was influenced by strong demand from Asian and Middle Eastern countries. The greater demand led the amount of meats shipped to increase 15.5% and prices to grow 6%, in the case of bovine meat, 24% for raw chicken meat, and 2.9% for pork meat.
The ministry highlights the recovery of chicken meat sales, after a period of depressed market conditions due to fear of avian flu. Chicken meat exports totalled US$ 4.2 billion last year, 44.3% more than in 2006.
Another highlight, according to the Ministry, was maize. Brazil shipped 10.9 million tonnes of the product, an expansion of 178% compared with 2006. The average price of maize also grew, from US$ 117 to US$ 172 per tonne.
One of the most traditional segments in Brazilian agribusiness, however, saw a decrease in product prices. The increased international market supply, according to the Ministry of Agriculture, Livestock and Supply, led sugar and alcohol prices to decrease from US$ 327 to US$ 263 and from US$ 587 to US$ 523 per tonne, respectively.
The leading destination for agribusiness exports was the European Union, to which sales totalled US$ 20.8 billion, a 31.1% rise. Next come the Asian countries, with US$ 11.2 billion in imports; North America, with US$ 7.3 billion; the Middle East, with US$ 4.7 billion; Africa, with US$ 3.8 billion; Latin American nations outside of the Mercosur, with US$ 2.6 billion; and the Mercosur member nations, with US$ 1.7 billion.
The leading buyer countries, still according to the Ministry, were the United States, with US$ 6.4 billion in imports; Holland, with US$ 5.4 billion; China, with US$ 4.6 billion; and Russia, with US$ 3.3 billion.
For more information click here and read the article in ANBA website

Petroleum Agency of Brazil wants small and medium oil producers

The National Petroleum, Natural Gas and Biofuel Agency (ANP) of Brazil wants to establish in the country a new business category: that of small and medium oil producers.
In an interview to Agência Brasil, the official news agency of the government of Brazil, the director general at the ANP, Haroldo Lima, stated that the target is to "make the opening of the oil sector not restricted to great producers, be they Brazilian or foreign."
"We want to make the oil sector, specifically in the case of land fields with marginal reserves of oil, into a space where small and medium producers may develop," he guaranteed.
The ANP intends to promote, still in the first half of this year, a third tender for marginal areas. Known as "little rounds", these are smaller tenders for oil exploration areas that take place between the agency's auctions of new areas for exploration and production of oil and gas.
Some 20 marginal areas located in the northeast of the country, especially in the state of Bahia, should be tendered. "The tender should take place in Salvador," added Lima.
Haroldo Lima said that, together, the states of Bahia, Sergipe and Rio Grande do Norte have 3,000 wells in 157 oil fields. "They are of marginal interest to large companies, but of great interest to medium and small companies in Brazil," stated Lima.
In the two previous tenders for sale of fields, there was mobilization of around 100 small businessmen who wanted to enter the oil field. Of the 17 areas offered in the first two "little rounds", 16 were purchased.
"The small and medium businessmen got ready to participate in this round, they hired technicians specialised in oil to analyse the areas, showing the great potential there is to develop the sector in Brazil. We are going to go on making this effort," declared the director general at ANP.
To the agency, providing incentives to participation of medium and small companies in the oil and gas sector contributes to the regional development and permits the generation of jobs and income and the increase of tax collection.
For more information click here and read the article in ANBA website

Brazilian leather exports surpass US$ 2 billion

Brazilian leather exports totalled US$ 2.19 billion last year, an increase of 17% compared with 2006, when sales stood at US$ 1.87 billion, according to data disclosed today (21st) by the Confederation of Brazilian Hides and Skins Industries (CICB).
Shipments of greater value-added items (semi-finished and finished products), represented 67% of total revenues from Brazilian exports in 2007, against 64% in 2006. In a press release, the president at the CICB, Luiz Bittencourt, said that the sector's performance is a result of the strategy of the tannery industry, which is increasingly focussed on higher value-added markets, such as the automobile and furniture sectors, which demand more than 60% of national production.
For 2008, the foreign market for the sector is expected to remain heated, even with a projected reduction of 5% to 10% in slaughtering to replace the cattle herd. According to Bittencourt, the Brazilian industry should expand by means of price compensation.
Last year, the leading destinations for Brazilian leather were China – including Hong Kong – with a 33% market share; Italy, with 28%; and the United States, with 11%. Brazil is the world's second largest producer and fourth largest exporter of leathers.
For more information click here and read the article in ANBA website

Brazil's 2007 Proven Oil Reserves Reach 12.623 Billion Barrels

Brazil at the end of 2007 had 12.623 billion barrels in proven oil reserves, the National Petroleum Agency, or ANP, said .
The country also had 364.99 billion cubic meters of natural gas reserves, the ANP said.
The ANP calculates reserves both from Brazil's state-run oil firm Petroleo Brasileiro SA (PBR), or Petrobras, and private oil companies such as Royal Dutch Shell Plc. (RDSA) or Devon Oil Corp. (DVN).
Petrobras in January said that it had proven oil reserves at the end of 2007 of 9.138 billion barrels, if calculated according to the strict criteria of the U.S. Securities and Exchange Commission, or SEC.
The ANP also included reserves from fields that are currently being developed, while the SEC demands, among other requirements, that oil companies have firm oil sale contracts for new fields to be considered company reserves.
Recently announced massive oil reserves at Petrobras' ultradeep Tupi field in Brazil's Santos Basin neither count toward Brazil's nor toward Petrobras' reserves yet. Petrobras in November had estimated reserves at Tupi at up to 8 billion barrels of oil equivalent.
Including probable reserves, the ANP sees Brazil's total oil reserves at the end of 2007 at 16.888 billion barrels, and gas reserves at 369.96 billion cubic meters.
For more information click here and read the article in CNN website