Written by Cláudia Abreu and Joel dos Santos Guimarães
Wednesday, 16 May 2007 17:14
The adjectives are many and voiced loudly all around: Brazil is the world's warehouse; it is the world's source of food. Up to a little while ago, these words were just said, not taken seriously. Now, however, a scenery with ballast, anchored to solid bases, is being drawn for Brazilian agribusiness.
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World largest Warehouse.....and Whorehouse ! written by ch.c.,
May 17, 2007
largest warehouse.....probably in the next decade or so ! largest whorehouse....already the case....today !
Brazil will definitely feed the world appetite for food and sex !
Stupid question : of these industries which of the 2 will be the largest ?
But as long as you are competitive in prices, keep growing......both industries !!!!!
Today, in SP wholesale markets, fresh chicken prices are around 1 Real per kg, and around 2 Reals if chilled. Swine prices are declining and your producers are struggling. Cattles farmers are struggling too. Sugar prices are down over 50 % in the last 15 months. Not so great for your sugarcane farmers...most certainly Ethanol prices have declined on a year over year basis. Not so great for Consan, the largest ethanol producer. Its stock price declined around 30 % from last year high....despite the BOVESPA is making new high. Thus it should not be so rosy.......as you want us to swallow your propaganda. Coffee prices are down too in US$, year over year !!! Thus down even more in your local currency ! Land Farms prices, although it stabilized since the end of last year, is still DOWN from it 2004 peak ! Down around 40 % when at the recent bottom, prices were down 50 % and even as much as 72 % in Mato Grosso.
Ask any Brazilian farmer of your choice in your new farming frontier, if things are as rosy as we read in the news here or there ! I am talking of those in Mato Grosso, Bahia, Tocantins, Goias and the likes. Things are better in other areas such as in the south east such as Para etc etc. Ask any Brazilian farmer of your choice, what went really up in the last few years. They will all sing : THE INPUT COSTS, fertilizers, pesticides, fungicides, transportation, and also the machinery needed (tractors, harvesters, seedlers, chisels, landlevellers etc etc). A grain harvester costs now around US$ 300'000.-, and a sugarcane harvester US$ 500'000.- !!!!Yesssssssss.....
Yessssss....lets face it, the biggest beneficiaries are trucks manufacturers, pesticides and fungicides manufacturers, GMO seeds producers, farm machinery manufacturers. Yesssss.......lets face it again, they are mostly FOREIGN COMPANIES !!!!! Everyone can look at their stock prices....ALL AT AN ALL TIMES HIGH......while the Brazilian companies stock prices involved in agriculture production, dont perform as well......despite the increased production !!!!
Conclusion : if one truly believes that Brazil is an agricultural miracle, the surest way to make money is by investing in the.....foreign companies involved, such as DEERE, CATERPILLAR, SYNGENTA, NOVARTIS, BAYER, MONSANTO....etc etc...! But certainly NOT in Brazilian companies.
Anyway, keep smiling, you will struggle more, the more you produce, anmd we will enjoy the most by investing in the foreign companies, and buying your cheap food !
Buy agricultural land. As you say it is cheap and in ten years you will double or triple your investment. The machinery will be made in Brazil, with a decrease in interest rates the ability to invest in capital improvement and therefore production is self evident. The Real is again worh its weight in the belief that it is backed by the near potential to feed the world. It is odd that exports increase even while the Real strengthens, for every Real exported it is like receiving 1.3 Reals. The world market will determine the credibility of your contentions.
Thailand is the global capital of whoremongering, I dont know if you have been their, but it makes Brazil look like a church choir.
BTW you dont actually need to buy the combine or harvester or seeder, you can lease it. If Brazil can build cars they can certainly build a lawn mower.
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Laugh....laugh...laugh ! Brazil can build cars ! written by ch.c.,
May 18, 2007
Please name the Brazilian car manufacturer...of your choice !!!!!!!
No need to buy harvesters and tractors, because you can lease them ! Well said...but at what interests rate ? Still the world highest.....after inflation....despite 15 cuts ! And what about amortizing them, a word you dont even know, based on your recent comments. Because harvesters and all mechanical stuffs loses value....year after year, and dont increase in value......contrary to what you suggested recently !
Who is going to lend to Brazilian farmers ? Certainly not the brazilian banks, unless the loans are guaranteed by the government. And again at what rate ? Could be loans fronm the BNDES, as they intend to subsdidizes several industries if you read the other article. But curiously they wont subsidize more the farmers....already deep in debts and unable to repay.....despite the propaganda about their success !
And AES the dumb, why dont you ask any exporter or farmer of your choice, if the actual exchange rate is like receving 1,3 Real for every Real they export ? More idiot, hard to find !!!!!! You are already the world only "Master in Finances" that sold gold at US$ 830.-, a price never reached in the last 25 years !
You should replace the new agricultural minister, or Meireles the President of the Central Bank ! You should also replace and give your advice to the FIESP.....because they are struggling to find a guy like you !
You should replace the new agricultural minister, or Meireles the President of the Central Bank !
Explain more
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Ch.c: BTW Bovespa hit 51,957 Yesterday and the Real was R$ 1.9550 written by aes,
May 18, 2007
We in the U.S. use the term depreciation to essentialy describe your use of the word amortization. And yes as a manufacturer of jewelry there was considerable machinery from vaccum casters, to polishers, platers, to sand blasting machines used in finishing. In 1980 Reagan inorder to 'jump start' the economy introduced what was called 'accelerated depreciation' that is you could 'write off' the cost of the capital investment in less than five years, the net result was that the company paid less income tax, and as a consequence purchased hard capital assets, since depreciation is an expense the taxes paid on the net profit was less, and the investment in capital goods increased production and as a consequence gross income. This single idea was one of the things that caused the great prosperity in the U.S. begining in 1980. It was responsible for the development of the computer industry and a myriad other innovative industries, from cell phone technology, to robotics.
The lending of money as you put it to farmers to purchase farm machinery is secured by the machinery itself. The land also provides the capital to secure the loan. The harvest for all intents and purposes have already been sold, especially as commodity prices remain high. This is the time to encourage agriculture while there is global demand and the commodity prices are high.
These are the things that bankers look at to determine the security of lending.
Interest rates will fall in Brazil, it is self evident. Business follows logic. Inorder to reduce the strength of the Real and thus insure a continuence of competitive pricing of commodities the Central Bank will continue reducing intrest rates until balance between the value of the Real and the amount of product that will sell at that price is reached.
I have been in the manufacturing of gold since 1973 in Los Angeles. In January of 1980 I melted everything down and stopped manufacturing for wholesale and opened a retail operation in Waikiki, Hawaii. $684.00 01/15/80 $760.00 01/16/80 $750.00 01/17/80 $830.00 01/18/80 $850.00 01/19/80
London Gold Fix 1980 http://www.usagold.com/reference/prices/1980.html
Are you now going to say that this site is being run by the Brazilians and false data have been introduzed? You should have done an independent research before accusing any one of falsehood.
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... written by Ric,
May 18, 2007
No one in his right mind would buy Brazilian farmland as a future investment hedge. You absolutely cannot hold it, keep it from being overrun, invaded, unless you are willing to spend big money to protect it 24/7. Personnel, electronics, lawyers, deeds, comity with local officials.
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Ric: The definition of a horse race. written by aes,
May 19, 2007
That is what makes a horse race. One opinion against another. If agriculatural land is cheap and Brazil is the garden of the future, their will be billions of dollars investing in the acquisition of agricultural land. The details of provincial primacy will be ovethrown by the sheer volume of monies appropriated to the acquisition of agricultural land and its obvious economical potential. The future of Brazil is obviously in the wind, and the times are changing. Look at Bovespa, look at the Real. Brazil is the garden of the world, and its land is undervalued as to the potential of the prospects of its potential production. The economic world is not a fool, and everything has a price. The price of Brazil is cheap and is in global competition for its acquisition it is inevitible that it will be acquired locally or in conjunction with international consortiums, but the garden of Brazil will be made manifest within the next ten years.
The price of Brazil is cheap and is in global competition for its acquisition it is inevitible that it will be acquired locally or in conjunction with international consortiums, but the garden of Brazil will be made manifest within the next ten years.
And any one who is not going to make use of this opportunity is an idiot. Ah,AES, we are chopping and chopping and no chips are flying.
Personnel, electronics, lawyers, deeds, comity with local officials.
Rickey, my friend, we all know that these are Hyennas,but remember that there are millions of honest Brazilians. Bo has similar problems,but still he is fighting against these jackasses. Ric, what we need to say to these Hyennas is " go f**k yourself"
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FOOD FOR STARVED NOT FOR EXPORTATION! written by pobrissima da rocinha,
May 19, 2007
LARGEST FOOD WAREHOUSE? THIS MEANS WE WILL BE ABLE TO FEED OUR STARVED PEOPLE f**k THE EXPORTATION
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Brazil is already a major player but written by Ric,
May 20, 2007
The article says that Brazil will become the planet´s Main Food Warehouse. Aside from the fact that production is one thing and warehousing is another, I think he means that Brazil will be number one in ag output. I am not saying it won´t be huge, but I can´t envision a scenario in which it becomes the largest producer.
The US Midwest has millions upon millions of acres of flat farmland with ten feet or more of topsoil. In the thirties the Dust Bowl blew some of that away in SE Colorado, OK and Kansas and the Texas panhandle, but moving north and east of there it´s still intact. (I once found a Model T Ford on our family ranch in CO which had been buried years before up to the bottom of the windshield. Silt.)
The only place is South America approaching the quality of the US heartland is the Pampas of Argentina, but it´s much smaller.
The Central Valley of California, or from the top, the Sacramento, San Juaquin and Imperial Valleys, plus the Salinas Valley, plus other smaller areas like Santa Maria, and yes, there are still ag fields on Lincoln between Anaheim and Lakewood, produce more in volume and value than every bit of real estate from the Rio Grande to the tip of South America. That´s just one state.
No one wishes Brazil more success than I do, but there are competing issues here. You can´t have mega production from small farms using inefficient methods, and yet the pressure is on to procede with more Agrarian Reform.
The Trans-Amazon Highway had an Agrovila every 100 km, cooperatives, I was out there when it started, most of the farmers were migrants from the NE, they gave up and went home. The elements were not there for success. At least they had the rain.
In the 1930 census in the USA a middle class family was defined as having one or two hired servants. The USA had two potential sources of a civil timebomb in those days, underpaid and overworked farm laborers and domestic servants. But that era ended peacefully because they found real jobs in industry.
If Brazil becomes number one, it had better start with projects like the Hetch-Hetchy, the Friant-Kern Canal, the Mono/LA project. It had better find a way to bring half of its population into the system without giving them the false promise of becoming a new and improved Jeca Tatuziho with only 10 hectares of land. It could start by having the Cearenses, who are more creative than those in the South, tackle the problem of transporting natural gas from the source to the destination without pipelines, because the main ingredient in fertilizer is Natural Gas and most Brazilian soil is not good enough to produce big time without fertilizer.
I don´t even want to get into the Greenie/Cargill issue, but I think this prognosis is a stretch. None of this has anything to do with the fact that yes, millions of Brazilians are honest.
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Pobrissima written by Ric,
May 20, 2007
Don´t worry. While Brazil may one day be the biggest SOYBEAN exporter in the world, nobody eats soybeans. Except Asians. And vegetarians and those who can´t tolerate dairy products. All but a tiny fraction ends up as feed for animals, and oil. The kind that´s bad for you if they hydoginate it, trans fats. They heat it up and expose it to hydrogen and a little nickel (Ni) and it makes it firm and gives it body, like lard. Great donuts, wonderful artery-clogging properties.
Problem is for us that while the producers are Brazilians, all the big middlemen are multinationals with English or Asian names, so they are the ones making all the bucks.
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Ric: It seems their are more solutions than problems. written by aes,
May 20, 2007
Well I suggest that Brazil begin marketing its production itself, eliminating the 'bogey man' middle man. It seems that this is going on as we speak with contracts with China, Japan, Egypt, Saudi Arabia are all made without middlemen, or at least non Brazilian middlemen.
Well I suggest that Brazil begin marketing its production itself, eliminating the 'bogey man' middle man
AES,well said and I love it. I have been screaming and yelling about this for years.Finally I found an ally.I like your power of positive thinking. We will come back and develop tua colocação.You make sure that your Skol is cold.
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... written by Ric,
May 20, 2007
If any of my perceptions are wanting I could not be more pleased that the one concerning soy farming is included.
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funny some of.. written by bo,
May 20, 2007
these articles. Ric hit the nail on the head. The U.S. is by far and away the largest food producer in the world and brazil simply won't be close in the next ten or twenty years.
Here are some suggestions for titles to future articles.
Brazil - A technological giant.
Brazil - The safest cities on planet earth.
Brazil - A place where racism doesn't exist.
Brazil pioneers space travel and puts the first monkey on mars.
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Bo: Hope your friend is doing better. written by aes,
May 20, 2007
A chicken in every pot two cars in every garage.
Peace in our time.
Casinos open in Copacabana
Justice prevails
BOVESPA hits 90,000
Interest rates drop to 5%
Trains hit 200 mph
National Highway System Established
Brazil ends tarrifs on imported cars.
New gold and diamond finds discovered in Minas, largest in world.
Brazil becomes largest military power in South America
Favelas privatized
Brazilian police on par with Singapore
Brazil justice system on par with Holland.
A lot can change in twenty years for better and worse.
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CH.C Toma cuidado written by aiocabrasil,
May 22, 2007
World largest Warehouse.....and Whorehouse ! written by ch.c., 2007-05-17 08:03:05
largest warehouse.....probably in the next decade or so ! largest whorehouse....already the case....today !
Espero que a proxima vez vc 'ta trepando um menor da rua ( deve ser que vc gosta disso ) que papai noel lhe dar um presente massa: duas malas cheia de maconha portando arma e com fome aquele na barriga, fome que dar dor de cabeca, fome suficiente pra matar e roubar um nojento safado como vc. Seja bem vindo ao brasil cara, seja bem vindo.
Although Ch.C may be a little rough on the edges, I rarely see him make statements that are untrue. And to be honest, this country could stand a dose of 50 million brazilian Ch.C's!!!
largest whorehouse....already the case....today !
Brazil will definitely feed the world appetite for food and sex !
Stupid question : of these industries which of the 2 will be the largest ?
But as long as you are competitive in prices, keep growing......both industries !!!!!
Today, in SP wholesale markets, fresh chicken prices are around 1 Real per kg, and around 2 Reals if chilled.
Swine prices are declining and your producers are struggling.
Cattles farmers are struggling too.
Sugar prices are down over 50 % in the last 15 months. Not so great for your sugarcane farmers...most certainly
Ethanol prices have declined on a year over year basis. Not so great for Consan, the largest ethanol producer. Its stock price declined around 30 % from last year high....despite the BOVESPA is making new high. Thus it should not be so rosy.......as you want us to swallow your propaganda.
Coffee prices are down too in US$, year over year !!! Thus down even more in your local currency !
Land Farms prices, although it stabilized since the end of last year, is still DOWN from it 2004 peak ! Down around 40 % when at the recent bottom, prices were down 50 % and even
as much as 72 % in Mato Grosso.
Ask any Brazilian farmer of your choice in your new farming frontier, if things are as rosy as we read in the news here or there !
I am talking of those in Mato Grosso, Bahia, Tocantins, Goias and the likes. Things are better in other areas such as in the south east such as Para etc etc.
Ask any Brazilian farmer of your choice, what went really up in the last few years. They will all sing : THE INPUT COSTS, fertilizers, pesticides, fungicides, transportation, and also
the machinery needed (tractors, harvesters, seedlers, chisels, landlevellers etc etc).
A grain harvester costs now around US$ 300'000.-, and a sugarcane harvester US$ 500'000.- !!!!Yesssssssss.....
Yessssss....lets face it, the biggest beneficiaries are trucks manufacturers, pesticides and fungicides manufacturers, GMO seeds producers, farm machinery manufacturers.
Yesssss.......lets face it again, they are mostly FOREIGN COMPANIES !!!!!
Everyone can look at their stock prices....ALL AT AN ALL TIMES HIGH......while the Brazilian companies stock prices involved in agriculture production, dont perform as well......despite the increased production !!!!
Conclusion : if one truly believes that Brazil is an agricultural miracle, the surest way to make money is by investing in the.....foreign companies involved, such as
DEERE, CATERPILLAR, SYNGENTA, NOVARTIS, BAYER, MONSANTO....etc etc...! But certainly NOT in Brazilian companies.
Anyway, keep smiling, you will struggle more, the more you produce, anmd we will enjoy the most by investing in the foreign companies, and buying your cheap food !