Brazil and Argentina Food and Fuel - 2/16/08

Brazil and Argentina are the few places left in the world where large tracts of land that can be acquired to support large-scale agriculture.  These two countries produce about one third of the world’s agricultural commodities, becoming the world’s bread basket.

Brazil is the world’s largest producer of ethanol; it is made from the abundant sugar produced there.  They are also the largest producer of coffee, fruit juice, and sugar cane.  Its agriculture production has grown 5% per year since 1999.  Agriculture represents 8% of the economy and employs one quarter of its work force. 

Brazil has Increased Ethanol Production by 40% in Five Years, for more information go to this link http://www.beyondfossilfuel.com/ethanol/brazil_0513.html

Argentina is also a leader in ethanol, soybeans, wheat, rice and beef. 

The greatest asset that South America has is fresh water.  This is going to be of great importance in the future as we continue to experience global warming.

Who is going to demand ethanol and food?  As the living standards of China and India rise, so will the amount of cars on their roads.  Demands will rise for alternative fuels derived from agriculture products, which will put South America in a good position.  Not to mention the shift of eating habits increasing the demands for foods like sugar, coffee and cocoa, not once affordable in these countries by the common family. 

Brazil and Latin American nations have big advantages over the US: Ample agricultural land and warm climates conducive to massive sugar cane plantations, with distilleries on site to process cane into fuel 24 hours after harvest.

Countries like Brazil and Argentina produce the stuff everybody else wants. They will do well in the world economy. 
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