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    « Understanding The Full Costs Of Corn Ethanol | Home | York Ethanol Plant Project Bears Watching »

    Brazilian Agribusiness And Ethanol Update

    By Mr Ethanol | October 15, 2007

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    Financial Sense:
    Agribusiness is the main driver of the Brazilian economy accounting for 33% of GDP, 42% of exports, and 37% of all employment.

    Agribusiness export revenues for the month of August reached $5.8 billion, representing 13% YoY growth. Sugar sales fell 17.9% in value YoY. Exports dropped 13.6% in value but rose 23.3% in volume.

    In the southeastern state of Sao Paulo, which accounts for 31% of Brazil’s GDP, the trade surplus was $6.92 billion for the first eight months of the year. Business in Sao Paulo is different from the rest of the country. 85% of the products undergo some sort of industrialization and/or processing, whereas for Brazilian exports as a whole the number is 56%. A much higher percentage of products created in Sao Paulo are modified to some extent and Brazilian agriculture is exported to the world through a variety of means, be it through sugar based products or the bagged salads you find in your local grocery store.

    The Netherlands recently released a study looking at the sustainability of Brazilian ethanol as a prelude to importing ethanol in order to meet future energy demands. The study found that there were no issues which would preclude San Paulo ethanol from not being able to meet Dutch sustainability standards for 2007.

    Continue reading.

    Topics: Agriculture, Brazil, News |


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