Brazil Selling Itself to China as Best Place for Investment

Paranaguá port in the south of Brazil Seeking investments in ports and roads from China, its largest market for agricultural products, Brazil, the world's largest exporter of poultry and second-biggest supplier of soybeans, wants to see the Chinese investing much more in the country.

"The biggest difficulty we have is logistics," said Célio B. Porto, Secretary of Agribusiness for International Relations at Brazil's Ministry of Agriculture, Livestock and Food Supply, in an interview in Singapore. "Our biggest problem in improving our production is lack of capital."

Brazil needs better transportation for a smoother flow of goods to port, Porto said in Singapore. The country supplied products including soybeans, frozen meat and tobacco worth US$ 11 billion to China, accounting for about a fifth of its agricultural exports, he said.

China, which has one-fifth of the world's population and seven percent of the planet's arable land, has been looking to the Philippines and Africa for strategic food supplies. The country is the world's largest buyer of soybeans, according to the US Department of Agriculture.

"The investments China has been making in Asia and Africa represent future production. Brazil's competitiveness comes from having present production," Porto said. "While Africa has a lot of land, it doesn't have the technology or the responsiveness Brazil already has to meet China's needs," he added.

Porto is leading a government delegation to Singapore, Hong Kong and China to expand markets for its products. Last year's exports to Hong Kong were valued at US$ 1.2 billion, and to Singapore, at US$ 298 million, he informed.

Brazil is seeking to benefit from scandals, such as the one in China involving milk and other products tainted with melamine.

"There's an increase in demand for our dairy products where Australia and New Zealand are the biggest exporters for Asia. The same is happening in eggs," Porto said. "This was what happened with Brazilian beef exports when there was 'mad cow disease' in the U.S." in late 2003.

Meanwhile, the global credit crisis and a decline in prices of food grains from records may lower investments in agriculture, causing future food shortages, he said.

"With this fall in prices of agricultural products in the world, the lack of investment in these products will occur first where the cost of production is higher and that is not the case in Brazil," Porto concluded.



  • Show Comments (3)

  • ch.c.

    The Chinese and Indians have a thousand years of deceit.
    TRUE but..but…but…

    And about “All those people that trusted their brokers and hedge fund managers,”
    NOT ONLY TRUE IN DEVELOPED NATIONS BUT ALSO TRUE for Asian, Indians, South Americans citizens that trusted their brokers and hedge fund managers”
    Thus far the Equity Indexes of emerging nations are DOWN far more than those in the developed nations !

    Brazilians better check THEIR OWN PENSION FUNDS !
    And I am talking for some of the largest pensions funds.
    Quite SAD, because the LAWS CAP THE RATIO AT 50 % !
    What has Your Government Official said about it …on the early part of the decline ?
    “We cant force them to sell when the market goes down”
    In view of the meltdown that followed……the ratio NATURALLY…..CAME DOWN……if you see what I mean !

    Another surprise just waiting to surface !

    The funniest part is that there was a law to be voted normally this year….to increase the cap at 70 % !
    Not voted….so far ! Vote delayed !

    And about “the American government that prevent wolves from devouring the whole of the sheep”
    Somewhat right. What about the brazilians citizens that are already devoured by the wolves ?

    Are citizens not paying 13-15 % on mortgages rates, 30-35 % on car loans, 50-60 on consumers goods and around 200 % or so on overdrafts ??????
    Are small and mid cap companies not borrowing at around 40 % ?
    And all this in an inflation environment of around 6 % ?


    Hip hip Lula, hip hip Lula….the only Robin the Crook on earth…that is acclaimed while taking his suporters for a ride !

    but…but….to be LESS CROOK AND KEEP HIS AURA INTACT, NOT LATER THAN TODAY….he is asking the banks to lower their lending rates. No doubt Brazilians banks will bend….JUST A LITTLE BIT….with pleasure….to show how “willing” they are !

    Here is the news :
    “BrazilÀ¢€™s President Luiz Inacio Lula da Silva asked his economic team to find measures to reduce the interest rates charged by banks, Folha de S. Paulo reported, without saying where it obtained the information.

    The average annual interest rate Brazilian banks charge customers rose to 45 percent in early November, compared with an average 42.9 percent in October, Altamir Lopes, head of the central bankˢ۪s economic research department, said yesterday. For consumers, the rate reached 59.8 percent in the first 12 days of November, the highest level in three years, Folha said. In October, the rate was 54.8 percent.
    Lula wants federally-controlled banks such as Banco do Brasil SA and Caixa Economica Federal to lead a reduction in rates charged by banks, Folha said.”

    The more you fill their rear with larger potholes….the more they beg for !!!!!

    Hip hip Lula….Hip hip Lula !!!!

  • AES

    It is always best to invest with OPM. The British referred to the Chinese as WOGS, wyley oriental gentlemen. It is the Chinese that put lead in the paint and plastic in the milk. Where is honor? It is made a fool by profit and expedience. The Chinese and Indians have a thousand years of deceit. Trust those you can trust. Do the research. Apparently the world is rife with thieves in the Equity and Commodity markets. All those people that trusted their brokers and hedge fund managers, a fool and his money are soon parted. It is only the courts and the American government that prevent wolves from devouring the whole of the sheep. It is a cycle of fleecing. The fleecing of the lamb.

  • ch.c.

    “Our biggest problem in improving our production is lack of capital.”

    Have you not US$ 200 billion in foreign currencies reserves…….that you are so proud of ?
    Why not use them ?
    If not, then make your local interests rates WAAYYY…LOWER.
    Brazil has the World Highest Interets Rates….after inflation.
    Why ask China to use their foreign currencies reserves for investment in Brazil…WHEN YOU HAVE THESE RESOURCES AVAILABLE AT HOME ?????

    Brazilians dont want to spend and invest but save and not spend and therefore expect others in both developed and emerging nations…TO SPEND AND INVEST….. in Brazil !

    This shows not only the base of your fundamental weakness but also the base of your fundamental perpetual cheatings !

    And “the lack of investment in these products will occur first where the cost of production is higher and that is not the case in Brazil,”
    SO WRONG !!!!!
    Your milk, chicken and grains farmers are struggling due to the LOW PRICES not only around the world but also due to LOCAL prices.
    Many Brazilians milk farmers have streets protests and demonstrationd due to LOW PRICES, complaining they are LOSING MONEY !
    Same for your Mato Grosso Farmers who already start to have their tractors and harvesters seized. Many even stopped paying their interests due…meaning they also wont repay the principal !!!!

    Nooooo ?????
    Welll just watch by yourself the videos on Globo Rural at TV GLOBO !
    If I am not yet too idiot, GLOBO is the largest Brazilian TV.
    RIGHT…OR NOT ??????
    Hundreds and hundreds of short videos are available….FREE….for viewing, to see what is not as true as your filthy government leaders pretend OPENLY AND PUBLICLY !

    Cheaters always cheat, liars always lie, hiders always hide ! Proven once more !
    AND BRAZILIANS EXCEL at cheating, lying and hiding ! Just watch the videos…and compare to what your filthy officials pretend.,,GOD0-5633-programa-1937,00.html

    So true when I frequently say…..never ever trust a Brazilian !


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