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Brazil Tells US to Help Poor Countries Instead of Making Own Ethanol

Brazil is suggesting that the African nations start producing renewable fuel as a way to improve the area's economy, creating new jobs for a product expected to have big demand in the years to come.

Many regions in Africa have favorable soil and climate conditions for bio-fuels production, according to the president of Petrobras, José Sergio Gabrielli.

He was a member of the Brazilian delegation that accompanied president Luiz Inácio Lula da Silva in Davos, Switzerland, during the World Economic Forum, which ended this Sunday, January 28.

The suggestion for the African continent to become a producer of renewable fuel was made in Davos by president Lula, who offered Brazilian technology to help the Africans.

"We believe this might be a way out for these countries," said Gabrielli. "The key issue, though, is not technology, but rather the financial aspect," Lula claimed.

Lula suggested to the businessmen in attendance at the World Economic Forum that wealthy countries might finance projects for bio-fuel production.

"Bio-diesel generates employment, income and development, and the Brazilian program could be an example to be implemented in African and Central American countries, with financing from wealthy countries," Lula said.

Lula mentioned that instead of producing ethanol out of corn, for instance, the United States should finance bio-diesel projects in poor countries, which could also be cheaper.

Professor Mário Ferreira Presser, who coordinates the Economic Diplomacy Course at the University of Campinas (Unicamp), in the southeastern Brazilian state of São Paulo, said that bio-diesel projects "have many attractive aspects: they would benefit Africans, Europeans and Brazilians. These projects would address the issues of climate and poverty, and liberate the sugar and alcohol markets."

"The strategy of Brazilian businessmen consists of showing that they will not single-handedly become major ethanol producers, but rather that many other developing countries may benefit from this market opening," says Professor Presser.

"The World Bank has also shown enthusiasm regarding the issue. Since no one knows exactly how to deal with the African problem, turning the continent into a producer of a commodity for which there is a guaranteed demand would be a tremendous step forward, and a great achievement for Brazil," according to Mário Presser.

"This is a business that should attract the interest of leading investors, because the prospect of making profit is very high," said Gabrielli.


  • Show Comments (6)

  • ken lane

    I just spent two months in Brasil.Brasil should tell others nothing till they cure their crime. It is a country of jail cells. Bars on all windows. The good people behind bars, as the bad people walk free.

  • usa

    No thanks “LULU”…Ask any commodities trader in New York ” Wall Street”… And You will hear ,doing business with Brazil is pathetic… BRAZIL DOES NOT DELIVER!!!!!…THE U.S. NEEDS BRAZIL FOR NOTHING….

  • bo

    [quote]Lula mentioned that instead of producing ethanol out of corn, for instance, the United States should finance bio-diesel projects in poor countries, which could also be cheaper.[/quote]

    Oh sure, let’s swap dependancy from one nation to another!! One can bet that the billions of dollars the U.S. is spending on the development of a viable alternative energy source certainly isn’t going to be outsourced to another country where the U.S. can basically be held hostage on a whim.

  • ch.c.

    continued…and end !
    or you should just as well give such a SUPID idea to China.

    Afterall they have 1 trillion US$ as foreign currency reserves.

    And China could then buy the ethanol from the money THEY financed.
    Is China economic growth not the country who has put a huge upside pressure on….OIL ?????

    Ohhhh….you are also NOT in favor of lower oil prices….since you are yourselves producers…..and probably exporters….shortly ????

    Dont worry…..oil and ethanol production will cost you dearly.
    – Ethanol needs sugar prices of around 10-12 U.S. cents to stay profitable.
    The actual price is 10,60 cents. Thus barely profitable. Will see the earnings of your
    ethanol companies…..in the next several months !!!!!! Laugh….Laugh…..
    – Most of your oil production come from deep wells…meaning quite costly to explore, drill and produce. Assuming as some do that oil prices will go back to 40- US$ per barrel this will not only heavily penalize Petrobras more than other oil producers but also put in jeopardy your ethanol profits.

    You are quite right to sell and try to export your ethanol as Eco friendly to try to keep a premium over oil prices.

    Will it work over time ? Not in my view.

    Hundreds billions of US$ have been spent in the last 3 years…to find more oil.
    The oil/gas found will come on stream….shortly !

    The world will swim in oil, and oil producers will beg us to buy their oil even at US$ 35.- per barrel.

  • ch.c.

    And obviously the way Brazil sees it is the wealthy countries finance the African countries to develop ethanol there …with the Brazilian technology.

    That means that YOU BRAZILIANS are indirectly financed…with our money…AND NOT WITH….YOUR…..MONEY !

    And if there is so much money to be made, why doesnt Petrobras invest its own money ????????

    I tell you….something is wrong !!!!!

    You wont take us for a ride….as easily as you suppose.

    The most stupids between Brazilians and the wealthy countries…..are not the wealthy coutries.
    Just look how backward Brazil is in its own development and economic growth.

  • ch.c.

    – well before Davos and Lula, some EU countries started negotiations to help some African countries to biofuels. Example UK is going to help South Affrica to produce
    biofuels from potatoes.
    – the USA being criticized for using so much oil and being addicted, it is quite reasonable
    for them to produce ethanol….TO BECOME LESS OIL ADDICTED AND LESS DEPENDENTS !!!!


    Over time they also have to reduce their huge trade deficit one way or the other and thus continued imports from countries that buy little from them….(such as Brazil for example)….doesnt make sense.

    They cannot ONLY buy and SELL NOTHING !

    But Brazil could definitely help Africa….not only through technology help….but also
    by buying more from these countries….since you have such a huge trade surplus….mostly
    in Agriculture.
    With so much excess production, why dont you help reducing hunger in that continent, by giving away some of your over production ?

    Ohhhhhh you dont give anything to those who cant pay ?????????


    You give nothing to anyone and always expect the “OTHERS” to do everything !

    What a shame….what a shame….what shame….that Brazil is

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