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Brazil Led Agrofuel Revolution Is Anything But Revolutionary PDF Print E-mail
2007 - September 2007
Written by Laura Carlsen   
Friday, 14 September 2007 18:53

US president Bush and counterpart Lula from Brazil meet in Brazil Agrofuel development has arrived on the global stage. Just this year, the number of declarations, dollars, and development plans that have gone to agrofuels are unparalleled in any other sector. An idea that languished for decades has suddenly become the darling of politicians, big business, international financiers, and the media.

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Comments (2)Add Comment
Interesting article !
written by ch.c., September 15, 2007
But ethanol is just made by agrofuels promoters.
Marlboro cigarettes, if allowed, would tell how smoking is good for your health. Would not they ? smilies/grin.gif

And if ethanol is as good and compettive as promoters want us to swallow, why is the price plumetting despite having a record
in oil price ?
There is a bug...somewhat....somewhere....in the Brazilian (IL)logic !

And if ethanol is so competitive, why is the Brazilian retail price at the pump station, the highest in...LATIN AMERICA ?????
There is a bug...somewhat...somewhere...in the Brazilian (IL)logic !

And if Brazil is self sufficient in oil, why is their pump prices, mixed with even cheaper ethanol, also the highest in...LATIN AMERICA ????
Just another bug.....in the Brazilian minds !

And if Brazil is sure that ethanol from sugarcane is so much competitive than ethanol made from grains, why will Brazil uses 15 % of its SOYABEANS.....for ETHANOL.....BY 2010 ????
Just one more cheating....by Brazilians !

And if Brazil is sure that ethanol from sugarcane is so much competitive than ethanol from corn, why IS Brazil, building ethanol plants....from corn ????
Another Brazilian lie !

What is sure on the other hand, is that at least elswhere in developed nations, NOT ONE ton of grain is manually harvested, in opposition to the over 60 % of your over 500 millions tons of sugarcane......that is MANUALLY harvested !

If developed nations are oil addicted, Brazil is poverty addicted especially knowing that Australia, for example, mechanically harvest 100 % of their sugarcane.....since....over 25 years ago. Therefore if Brazilians would say the technology is recent, they would simply lie.....as usual !

The conclusion being quite simple : not only Brazilians are full of lies and cheatings, and even more full of contradictions as explained above, but if developed nations are oil addicted why should they become ethanol addicted ?????
At the end an import remains...an import !
Lets face it, ethanol is not cheaper than oil, despite the actual oil price historical record.

Below is another article with a more common sense view, and from a Brazilian ethanol producer (not from an anti-ethanol side...by definition) :
"BRASILIA, Sept 14 (Reuters) - Current low sugar and ethanol prices could encourage a new wave of consolidation in this sector as most companies will be weakened, Brazil's biggest sugar and ethanol producer Cosan (CSAN3.SA: Quote, Profile, Research) said on Friday.
Despite a rise in net profit, Cosan late on Thursday posted net operating revenues of 591.7 million reais ($311 million) for its first fiscal quarter (May-July), down 37 percent compared with a year ago.
Results were hit by a drop in sugar and ethanol prices, the appreciation of the Brazilian real against the dollar and unseasonal rains which forced mills to interrupt harvesting during the quarter.
International sugar prices have more than halved from a 25-year peak of almost 20 cents a lb in February 2006 as world output rose in response to high prices, mainly in Brazil and India. Cane-based ethanol has been pressured as well.
"On one hand this imbalance should bring serious consequences to this crop, but on the other hand, it should contribute to a better natural selection of the producers," Cosan's financial vice president, Paulo Diniz, said in a conference call.
"A second wave of consolidation in the industry may ensue, with some remaining players becoming stronger, but the great majority considerably weaker," he added.
Diniz said the current surplus in the world market is not restricted to sugar, but also includes ethanol.
But low prices will not affect Cosan's investment plans, including possible projects outside Brazil, as long-term prospects remain positive, Diniz said.
The company expects to become the world's No.1 renewable energy company. To achieve that, it intends to more than double its crushing capacity to between 80 million and 100 million tonnes, compared with 40 million tonnes now, he added."

OVER PRODUCTION HAS ALWAYS THE SAME RESULTS : LOWER PRICES AND LOWER MARGIN IF ANY !
And Brazil is the world champion for over production. Just look at the orange juice price. It more than doubled after Katarina, but is 50 % lower than its peak, exactly the same as sugar prices !!!!!

In my view, as planned you should continue to double/triple/quadruple your agricultural and ethanol production...and guess what will happen sooner or later !
LAUGH....LAUGH....LAUGH....
...
written by conceicao, September 17, 2007
Someone should inform the author of (1) the run-up in Brasilian farmland prices in the last decade - presumably, farmland is owned by farmers; (2) the incredible profits that U.S. farmers have been reaping
from selling out of their early investment in ethanol refineries - this all on top of the $4000 - $5000 per acre that Iowa corn acreage now sells for; and, most importantly, (3) that the only workable modern
model for the kind of central government social spending that Lula is pursuing in Brasil and that she presumably approves involves the encouragement of corporate profitability that the government then taxes - this is why Brasil has democracy and capitalism but very little democratic capitalism, i.e., the very phenomenon about which she complains emanates from her own intellectually worthless socialist or "bolivarian"
sensibilities.

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