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Brazilian companies from the sugar and alcohol sectors are getting ready to enter the foreign market. They are about 70 companies who are going to participate, in one month's time, in a project for preparation of exports.
The project is promoted by the Brazilian Export and Investment Promotion Agency (Apex) and by the Agency for Political and Economic Development of Piracicaba (Aderp). The companies will be from the cities of Sertãozinho, Piracicaba and Ribeirão Preto. "We must act fast to remain in control of this market. We have technology and capacity to lead the process," stated Apex president Juan Quirós, in a statement disclosed by the agency. The objective of the project is to identify potential consumer markets, attract foreign investment and strengthen the Brazilian image as a producer in the sector. The first activity has already been programmed. Apex and Aderp are going to bring to Brazil foreign businessmen interested in importing machinery and equipment turned to the sector, like tractors, harvesters, grinders and boilers. According to the Industry and Trade secretary of Piracicaba, importers have already been identified in Southeast Asia, the Middle East, Africa, India and Oceania. A special consultant is going to be hired to prospect the foreign market and seminars for foreign businessmen will be promoted to attract foreign investment. The intention, according to Quirós, is to bring funds to companies, mainly small ones, which are technologically prepared, but do not have a financial capacity to increase production. Foreign journalists specialized in the area will also be brought to Brazil to learn about sugarcane production hubs, ethanol producers and research centers. The project should make the country better known for excellence in the production of ethanol. Brazil produces over 400 million tons of sugarcane a year and almost half of it goes to the production of ethanol. In the last harvest, the country produced around 16 billion liters of the fuel.
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- Dont these experts know that John Deere, MF, Valtra.....just to name a few, are building tractor in Brazil ? Or are they not of good quality enough ?????
- the authors of the articles, apparently " experts and professionals" dont seem to know that in Brazil to have reduced taxes on
tractors, 60 % must be built in Brazil. Otherwise imported tractors have a HUGE tax bill and become usually too expensive to be economically profitable.
- but of course when investments come from outside.......HUGE taxes should be affordable to foreign investors, but not to local farmers owning thousands and thousands of hectares unable to import foreign made tractors.
For 4 years your motto was : big profits can be made in your Yellow Gold : soya.
By now most soya farmers are bankrupt and unable to repay their debts.
And now you are saying exactly the same for your Green Gold : ethanol.
Therefore everyone should know what will happen next....in 2 or 3 years at the latest.
Another bubble will burst. Billions of US$ will be lost and billions of US$ lent will not be repaid.
If your agriculture is so healty and productive, why so many banrupticies. And in a booming agriculture, farm and land prices
should go up.......by definition. Reality is that your land prices went down by 30 % minimum, usually by 50 %, and in some cases by up to 70 % notably in Mato Grosso.
Yeahhhhh what a boom....in losses. Saying this time is different......has been repeated again and again during the last 2 centuries.
You had your white gold : rubber ! Boom....and Bust !
You had your brown gold : coffee ! Boom....Bust...Boom. ....Bust and so forth !
You have your red gold : meat ! Boom and by now BUST !
You had your Ostriches BOOM ! No one saw the bust that followed. Ostriches meat are healthier and more profitable than cattle meat....so was your marketing. Today you say exactly the same to differntiate your ethanol against oil. Better and cheaper is your motto.
You had your eucalyptus trees boom....and bust !
You had your teak plantations.....that boomed and busted !
Ohhhhhh you even had your jojoba boom....and bust !
For the time being you still have your grey gold : iron ore ! but for how long ??????
Ethanol will just be another boom and Basta !
I just reminded you that 30 years ago you used the same marketing to magnify your ethanol magics.Thus you already had a BOOM and BUST. Your ethanol production went already down by well over 80 % and more when only 1 % of your cars used ethanol.
Why do you think that Brazil has been nicknamed a BOOM and BUST economy ?
Just re-read the above. A nickname well earned !
It is only another trap....your ethanol....just like all your previous traps. Not better and not worse.
The only point I agree with the "experts" is in the very long term.
Meaning that investments should be made when bankruptcies will be generalized.
Then it will become interesting to buy land/machinery/mills at 30 or 40 cents to the dollar !
Investing in a product at the top of a cycle......when that product is named and marketed in every media of the world, you know what happens next ! It is simply the same over and over again, time and time again. Nothing NEW.