World Grain - August 2015 - 24

COUNTRY FOCUS

Focus on Brazil
One of world's biggest grain producers
and exporters still faces inland
transportation logistics problems
by Chris Lyddon

VENEZUELA

Brazil is a massive and important producer and exporter of
JUDLQDQGRLOVHHGV,WVÀRXUPLOOLQJLQGXVWU\FRQFHQWUDWHGLQWKH
VRXWK GHSHQGV RQ LPSRUWHG UDZ PDWHULDO /RJLVWLFDO SUREOHPV
UHPDLQDQLVVXHIRUWKHJUDLQLQGXVWU\DGGLQJFRVWWRH[SRUWV
7KH ,QWHUQDWLRQDO *UDLQV &RXQFLO ,*& SXWV %UD]LO¶V WRWDO
JUDLQSURGXFWLRQLQDWPLOOLRQWRQQHVGRZQIURP
PLOOLRQ WKH \HDU EHIRUH :KHDW SURGXFWLRQ LQ
LV SXW DW PLOOLRQ WRQQHV FRPSDUHG ZLWK PLOOLRQ LQ WKH
SUHYLRXV\HDU
7KHFRXQWU\¶VELJJHVWJUDLQFURSLVPDL]HZLWKRXWSXWRI
PLOOLRQWRQQHVSUHGLFWHGIRUFRPSDUHGZLWKPLOOLRQ
LQWKH,*&VDLG%UD]LOLVVHWWRSURGXFHDQXQFKDQJHG
PLOOLRQWRQQHVRIVRUJKXPLQ
7KH ,*& SUHGLFWV %UD]LO¶V JUDLQ LPSRUWV ZLOO UHPDLQ VWHDG\
DWPLOOLRQWRQQHVLQZLWKLWVWRWDOJUDLQH[SRUWVDW
PLOOLRQ WRQQHV XS IURP PLOOLRQ LQ ,PSRUWV
DUHPRVWO\ZKHDWDWPLOOLRQWRQQHVLQDQGPLOOLRQ
LQ%UD]LO¶VPDL]HLPSRUWVDUHSXWDWWRQQHVLQ
GRZQ IURP WKH \HDU EHIRUH %UD]LO LV VHW WR
export 22.3 million tonnes of maize in 2015FRPSDUHGZLWKPLOOLRQLQ
%UD]LO LV VHFRQG RQO\ WR WKH 8QLWHG 6WDWHV
LQ WHUPV RI VR\EHDQ SURGXFWLRQ 7KH ,*&
SUHGLFWVLWVFURSIRUWREHPLOOLRQ
WRQQHVXSIURPPLOOLRQWKH\HDUEHIRUH,WV
VR\EHDQH[SRUWVZLOOEHPLOOLRQWRQQHV
up from 45.8 million in 2014-15.

GUYANA

COLUMBIA

SURINAME French
Guiana
(FRANCE)

BRAZIL

PERU
BOLIVIA

PARAGUAY
CHILE
ARGENTINA

FLOUR MILLING INDUSTRY
$FFRUGLQJWRWKHLQGXVWU\JURXS$ELWULJR
%UD]LOKDVPLOOV7KH\DUHFRQFHQWUDWHGLQWKHVRXWK
ZLWKLQ5LR*UDQGHGR6XOLQ3DUDQDDQGLQ
6DQWD&DWDULQD7KHVRXWKDFFRXQWHGIRURIZKHDW
PLOOLQJ ZLWK PLOOLRQ WRQQHV PLOOHG LQ 3DUDQD
WRQQHVLQ6DQWD&DWDULQDDQGPLOOLRQLQ
5LR*UDQGHGR6XO
$KHDGRIWKH2FWREHUHOHFWLRQ/DZUHQFH3LKSUHVLGHQW
RI 0RLQKR 3DFL¿FR %UD]LO¶V ODUJHVW ÀRXU PLOO ZDV TXRWHG E\
WKHWall Street JournalDVVD\LQJWKDWKHKDGEHHQFXWWLQJEDFN
URUGUAY

Key Facts
Capital: Brasilia
Population: 202,656,788 (July 2014 est.)
Religions: Roman Catholic 64.6%, other Catholic 0.4%,
Protestant 22.2% (includes Adventist 6.5%, Assembly of
God 2.0%, Christian Congregation of Brazil 1.2%, Universal Kingdom of God 1.0%, other Protestant 11.5%), other
Christian 0.7%, Spiritist 2.2%, other 1.4%, none 8% (2010
est.).
Location: Eastern South America, bordering the Atlantic
Ocean.
Government: Federal republic. Chief of state and head of
government: Dilma Rousseff (since Jan. 1, 2011).
Economy: Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a
rapidly expanding middle class, Brazil's economy outweighs
that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil
has steadily improved its macroeconomic stability, building
up foreign reserves, and reducing its debt profile by shifting
its debt burden toward real denominated and domestically
held instruments. Since 2008, Brazil has become a net external creditor. After strong growth in 2007 and 2008, the
onset of the global financial crisis hit Brazil in 2008. Brazil
experienced two quarters of recession, as global demand
for Brazil's commodity-based exports dwindled and external
credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%,
the highest growth rate in the past 25 years. After reaching
historic lows of 4.5% in early 2014, the unemployment rate
remains low, but is rising. Brazil's traditionally high level of
income inequality has declined for each of the last 15 years.
GDP growth has slowed since 2011, due to several factors,
including: overdependence on exports of raw commodities, low productivity, high operational costs, persistently
high inflation, and low levels of investment. Brazil's fiscal
and current account balances have eroded during the past
four years as the government attempted to boost economic
growth through targeted tax cuts for industry and incentives
to spur household consumption. After winning re-election in
October 2014 by a historically narrow margin, President Dilma Rouseff appointed a new economic team led by Finance
Minister Joaquim Levy, who introduced a fiscal austerity
package intended to restore the primary account surplus to
1.2% of GDP and preserve the country's investment-grade
sovereign credit rating.
GDP per capita: $15,200 (2014 est.); inflation: 6.3%
(2014 est.); unemployment: 5.5% (2014 est.).
Currency: Reals (BRL): 3.17 reals equal 1 U.S. dollar (July
21, 2015).
Exports: $242.7 billion (2014 est.): transport equipment,
iron ore, soybeans, footwear, coffee, automobiles.
Imports: $241.9 billion (2014 est.): machinery, electrical
and transport equipment, chemical products, oil, automotive
parts, electronics.
Major crops/agricultural products: coffee, soybeans,
wheat, rice, corn, sugarcane, cocoa, citrus; beef.
Agriculture: of GDP and of the labor force.
Internet: Code: .br; 26.577 million (2012) hosts and
75.982 million (2009) users.
Source: CIA World Factbook

August 2015 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - August 2015

Table of Contents for the Digital Edition of World Grain - August 2015