Brazil Business in Brief

Brazil Business in Brief Februari 2013

Brazil Business in Brief is a publication of the Dutch Economic Network in Brazil composed of the Embassy in Brasília, the Consulates-General in São Paulo and Rio de Janeiro and the Netherlands Business Support Offices in Porto Alegre and Recife. The publication provides a selection of news and developments in Dutch priority areas in the Brazilian economy. It is shared with public and private entities with special interests in Brazil. It is put together on the basis of publicly available information from various sources such as news articles, press releases and third party information. The Dutch Economic Network in Brazil, however, is not responsible for the accuracy of the published information.

Inhoud 1. Algemeen Brazil in numbers End of year 'jeitinho' GDP 'pibinho' Brazilian exports maintain high level in 2012 Government announces new package of tax cuts Changes to transfer pricing rules (2013) Decree to unify interstate ICMS tax Traditional brewers plan investments in Pernambuco Education investments were 5.3% of GDP in 2011 Pharmaceutical hub is close to be realized Kansen voor de staalverwerkende industrie in Pernambuco 2. Transport en Logistiek Luchthavenconsessies aangekondigd Brazilian transport road show Covenant between government and private organizations to study the proposal for a new airport in the capital of Rio Grande do Sul New highway auctions Transnordestina railway still off the rails Amazon 3. Olie en gas ANP plans to revise local content rules Nieuwe Petrobras raffinaderij in Maranhao 4. Energie Wind energy is expected to grow in 2013 but it will become more expensive 720 miljoen voor ethanol uit rijst In times of possible power shortage new thermoelectric plants will start generating in March 5. WK 2014 & OS 2016 Gebruik van particuliere beveiligers bij mega-evenementen 6. Onderwijs en Wetenschap Innovation Act is enacted in Paraná 7. Agribusiness 2012's harvest breaks record and reaches 162.1 million metric tons Nieuw – tegenvallend – record landbouwexporten Brazilië in 2012. Nederland wederom 3e bestemming Voor 2012/2013 record graanoogst verwacht Brancheverenigingen publiceren exportprognoses 2013: het wordt een mooi jaar Monsanto wil ethanolproductie uit sorghum een impuls geven 8. Vakbeurzen in Brazilië

Brazil Business in Brief

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1. Algemeen Brazil in numbers On 28th December, the Central Bank announced the primary deficit of BRL 5.5 billion in November – the worst result ever for the month of November. Thus, the primary surplus accumulated BRL 84.633 billion for the 12-month period (1.93% of GDP), way below the 2012 “target” of BRL 139.8 billion. In October 2012, the 12-month accumulation was BRL 98.351 billion (2.26% of GDP) (see below End of year “jeitinho”). The stock market ended 2012 with an advance of 7.40%. The dollar appreciated for most of 2012 although in December it fell by 4.13% to end the year at BRL 2.043. For the year, the dollar rose 9.31%. Brazil’s capital flows in December were negative by USD 6.8 billion, the worst result since November 2008. For the year, flows were positive by USD 16.8 billion, down 74% from 2011 when net inflows totaled USD 65.3 billion. In November, the nominal deficit was BRL 21.846 billion versus BRL 4.607 billion in October and BRL 10.163 billion in November 2011. The 12-month accumulation is now BRL 130.702 billion (2.98% of GDP). In November, Brazil posted a current account deficit of USD 6.803 billion. This was the largest monthly deficit in Brazil’s history. The 12-month accumulation of this deficit was USD 51.827 billion (2.28% of GDP). The Central Bank predicts a USD 52.5 billion deficit for 2012 versus USD 52.48 billion in 2011. IBGE announced the IPCA for December (+0.79%) on 10th January – up from +0.60% in November 2012 and +0.50% in December 2011. The Broad Consumer Price Index (IPCA), the official inflation index, ended 2012 with a rate of 5.84%, above the target of 4.5%. As in 2010 and 2011, however, the target carried a two-point leeway in either direction, permitting the index to remain within the margin of error. This rate was slightly higher than the +8.10% compiled by the IGP-DI. In 2011, the IPCA posted +6.50% and +5.91% in 2010. The prices of services and food were the main factors behind last year’s inflation. Services increased 8.74% while food prices jumped 9.86%. In December, the rate was 0.79%, the highest since March 2011. The Central Bank Monetary Policy Committee (Copom) voted to hold the Selic rate at 7.25% a year. In its statement, Copom said that while short term inflationary pressures have increased, this will be countered by slow economic growth and the continued troubles of the developed nations. The World Bank has cut the Brazilian GDP growth forecast for 2013 to 3.4 percent from the previous estimate of 4.2 percent. This means a sharp rebound from 2012 when growth was expected to be less than 1 percent. It also estimates the GDP growth in Brazil, the largest economy in Latin America and the Caribbean region, will reach 4.1 percent in 2014. Sources: Brazil Focus, Brasilinform, Reuters, Bloomberg, English.news.cn. End of year ‘jeitinho’ At the end of 2012, the government used a “jeitinho” (special arrangement) to achieve the 2012 primary surplus “target” of BRL 139.8 billion when the Jan.-Nov. total was only BRL 82.7 billion. This was done through “triangulation”, BNDES “grabbed” BRL 8.8 billion from Brazil’s Sovereign Wealth Fund to purchase STN bonds; BRL 25.6 billion of PAC funds were excluded from the primary surplus calculations; and the BNDES and CEF anticipated BRL 18.9 billion in dividends in late 2012. The market reaction to this “jeitinho” was VERY negative and might affect Brazil credibility evaluation and perhaps reduce investments in 2013. Many analysts said it would have been better to report a lower primary surplus, in lieu of the negative international situation. Source: Brazil Focus – 22 Dec. January 4, 2013. GDP 'pibinho' In Brazil, Brazil’s GDP growth is referred to as the “PIBinho”; PIB meaning GDP but with the diminutive suffix “inho”, a very small GDP. Even Pres. Dilma Rousseff refers to the pibinho when analyzing economic performance in 2012. Economists cut their estimates for economic growth in Brazil to 0.98% for 2012, a central bank survey showed, highlighting the sharp slowdown of an economy that just a couple of years ago was an emerging market star. The world's number 6 economy was expected to grow 1.0% this year in a poll released last week, a far cry from the 3.30% expansion predicted by economists surveyed by the central bank at the start of the year. Still, economists see the Brazilian economy rebounding to grow 3.30% in 2013 after an avalanche of stimulus measures by the government of President Dilma Rousseff that includes dozens of tax breaks and subsidized loans.



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Economists raised their expectations for inflation in 2012 for the fourth straight week despite the slowdown in activity. Inflation was seen ending the year at 5.71%, inching closer to the ceiling of the official target range of between 2.5% and 6.5%. Inflation rose to 6.5% in 2011. Inflation will likely remain high next year with economists seeing consumer prices rising 5.47% in 2013, according to the poll of around 100 economists. Source: Brazil Focus – 22 Dec. January 4, 2013 & MercoPress, January 3, 2013. Brazilian exports maintain high level in 2012 In 2012, Brazilian exports achieved the second highest value since trade balance records began, with a value of USD 242.6 billion, second only to the figure registered in 2011 (USD 256 billion), representing a fall of 5.3%. The same situation was seen with imports which closed the year at USD 223.1 billion, a 1.4% drop compared to the record set in 2011 (USD 226.2 billion). With these results, the trade surplus was USD 19.4 billion and trade flow, USD 465.7 billion. In terms of markets, with purchases of USD 34.2 billion, China ended the year as the main source of Brazilian imports for the first time, overtaking the United States (USD 32.6 billion), followed by Argentina (USD 16.4 billion), Germany (USD 14.2 billion) and South Korea (USD 9.1 billion). The main markets for Brazilian exports in 2012 were China (USD 41.2 billion), the United States (USD 26.8 billion), Argentina (USD 18 billion), the Netherlands (USD 15 billion) and Japan (USD 8 billion). With regard to exported Brazilian products, record sales for the year were achieved in soybean meal (USD 6.595 billion), corn (USD 5.359 billion), fuel oils (USD 5.038 billion), raw cotton (USD 2.104 billion), pumps and compressors (USD 1.778 billion) and buses (USD 295 million). Source: Ministry of Development, Industry and Foreign Trade, January 4, 2013. Government announces new package of tax cuts The government on Dec. 19 unveiled another economic stimulus package focused on tax breaks for several sectors. The total of tax reductions was estimated by officials at BRL 6.8 billion (USD 3.3 billion). The existing excise tax (IPI) reductions for cars, appliances and furniture were all extended into 2013 but will be gradually eliminated through July. The tax breaks for trucks and washing machines were made permanent. The government also extended to the retail sector its new policy replacing a 20% social security tax on payroll with a 1% to 2% tax on gross revenues. Supermarkets, however, were not included at their own request. In addition, exporting firms in 2013 will continue to receive tax credits equal to 3% of their revenues from the export of manufactured goods. The idea is to compensate these firms for indirect taxes they pay in the manufacturing process. Finance Minister Guido Mantega also said that the government will send to Congress a new tax reform proposal that would lower to 4% the state ICMS tax which today ranges from 7% to 12%. The reduction would be gradual, concluding in 2025. According to Mantega, next year the government plans on introducing measures to reduce taxes by BRL 40 billion (USD 19.3 billion). Source: Brasilinform, December 26, 2012. Changes to transfer pricing rules (2013) Brazil’s federal tax authority in late 2012 issued guidance (Normative Instruction 1,312/12) to implement changes in the transfer pricing legislation, as enacted pursuant to Law 12.715/12. The provisions are effective starting 1 January 2013 or, at the taxpayer’s election, may be applied retroactively from 1 January 2012, provided that the changes are fully adopted by the taxpayer. KPMG offers an overview of these transfer pricing changes here: http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxnewsflash/pages/brazilchanges-to-transfer-pricing-rules-2013.aspx Decree to unify interstate ICMS tax Nelson Barbosa, Finance Ministry executive secretary, said on Dec. 11 that the government will release a decree unifying the interstate ICMS tax, the state value added tax that is the main source of state revenues. The new value will be 4%, replacing the 7% to 12% brackets that today exist in states in the Northeast, Central-West and North. Barbosa said the decree will also set a new indexer for state debt payments to the federal government. This will be introduced gradually and therefore a fund has been established. Source: Brasilinform, December 19, 2012. Traditional brewers plan investments in Pernambuco Given the favorable geographic position (in relation to some of the other states of the Northeast), an increasing market (population and income), and the festivity culture (among the most popular Carnivals, summer, beaches, São João, Shows, Musical events, weddings, and all sorts of social gatherings), the Municipality of Itapissuma, approximately 40 Km to the north of Recife, is becoming the Northeast’s newest beer cluster. Brazil Business in Brief


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In January 2013 Grupo Petrópolis from Rio de Janeiro, joined an existing AMBEV plant and started the construction of their new production facility in Itapissuma. The plant has been planned to produce 600 million liters of beer, and operations should begin in 2014 (luckily before the World Cup!). The brewer plans to produce beers of their famous Itaipava brand, as well as Crystal and Lokal. Besides Ambev and Petrópolis, government officials have made public that Brasil Kirin, owners of Schincariol, are also targeting Itapissuma for a future production facility. Source: Diário de Pernambuco, January 12, 2013. Education investments were 5.3% of GDP in 2011 According to the Ministry of Education, the public sector in 2011 invested an amount equal to 5.3% of gross domestic product in education. This was up from 5.1% in 2010. The government, however, is far from its goal of investments equal to 10% of GDP by 2022 set by the National Education Plan. At the current pace, investments in ten years will total only 8% of GDP. Source: Brasilinform, December 26, 2012. Pharmaceutical hub is close to be realized The pharmaceutical hub in Goiana in the Mata Norte area is close to be realized. For now the only factory that is under construction is the plant for Hemobras, the Brazilian company for hemoderivatives and biotechnology. The company Multisaude / Multilab has already completed the earthworks. The expectation is that during the first trimester of this year seven other companies will be installed creating this hub. The companies expected are: Vita Derm (skin products and cosmetics), Riff, AC Diagnosticos and Ionquimica both specialized in raw materials for the cosmetic industry and personal Hygene, Lafepe Quimica Pharmaceutical Laboratory for the state of Pernambuco, Cosmeticos and Imbesa / Rishon (cosmetics). The total amount of investments is approximately BRL 1 billon. The total actual area consists of 345 hectares and has the forecast to grow with another 51 hectares. Small detail to obtain the licenses to construct from Anvisa (Nacional Agency for Health Surveillance) the tarmac needs to be laid. Source: Diário de Pernambuco, January 2, 2013. Kansen voor de staalverwerkende industrie in Pernambuco In maart van dit jaar zal er een overleg plaatsvinden tussen de verschillen industriële clusters (Shipbuilding, automotive, Oil en Gas, de Petrochemie en brouwerijen) in Pernambuco. Doel van dit overleg is om de synergie tussen deze verschillende sectoren te versterken. Daarnaast willen ze bedrijven in deze sector informeren over de kansen in Pernambuco. De focus ligt zowel op bedrijven uit het zuiden van het land als internationaal. Ze zijn met name geïnteresseerd in de staalverwerkende industrie (machining en smederijen).Hierdoor omvat de potentiele markt voor een bedrijf die zich hier vestigt meer dan een sector. Bron: Bezoek aan Olie Raffinaderij Abreu & Lima. 2. Transport en Logistiek Luchthavenconsessies aangekondigd De overheid kondigde op 20 december de veiling van de concessies van twee luchthavens - Galeão (Rio de Janeiro) en Confins (Minas Gerais) aan, die waarschijnlijk aanstaande september zal plaatsvinden. De overheid wil medio augustus de voorwaarden delen met de verschillende consortia die in aanmerking komen voor de veiling. Om meer ervaren luchthavenoperators aan te trekken moeten bieders aantoonbare ervaring hebben met het managen van vliegvelden met tenminste 35 miljoen passagiers per jaar. Deze operator moet ook tenminste een 25%-belang in het winnende consortium hebben. Voor de eerste drie geprivatiseerde luchthavens, Guarulhos, Congonhas en Brasilia, was de eis slechts ervaring met 5 miljoen passagiers/jaar en een belang van 10%. Net zoals bij de eerder verleende concessies zal Infraero aandeelhouder en met 49% een minderheidsbelang houden. De huidige capaciteit van Confins bedraagt 10,3 miljoen passagiers per jaar. In 2011 ontving de luchthaven 9,5 miljoen passagiers. In december 2013 zal de capaciteit van de luchthaven verhoogd zijn tot 17,5 miljoen passagiers. De verwachte vraag voor 2014 is 13 miljoen passagiers. Op dit moment heeft Galeão een capaciteit van 17,4 miljoen passagiers per jaar. In 2011 werden er 14,9 miljoen passagiers ontvangen. Ook zijn maatregelen aangekondigd ter versterking en uitbreiding van de regionale luchtvaart die zijn aangekondigd betreffen de investeringen van BRL 7,3 miljard (EUR 2,7 miljard). In de eerste fase van het plan zullen de investeringen over 270 vliegvelden verspreid worden over alle regio’s van het land. De maatregelen dienen om de kwaliteit van de dienstverlening aan passagiers te verbeteren, nieuwe luchthavens toe te voegen aan het luchtvervoernetwerk en het aantal operationele routes te vergroten. De regering heeft als doel gesteld dat 96% van de bevolking binnen een straal van 100 km een luchthaven ter beschikking heeft. Luchthavens met minder dan een miljoen passagiers per jaar zullen geen belastingen heffen aan luchtmaatschappijen en passagiers. Via het Nationale Brazil Business in Brief


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Burgerluchtvaart Fonds (FNAC) zullen deze de voorziene maatregelen voor regionale luchthavens vergoed worden. Dit fonds is gecreëerd via de middelen die vrijkomen uit de concessies met betrekking tot Guarulhos, Viracopos en Brasilia. Bron: Ambassade van het Koninkrijk der Nederlanden, Brasilia. Brazilian transport road show Gleisi Hoffmann (Casa Civil) and Bernardo Figueiredo (EPL) are organizing a BRL 133 billion “road show” (with BNDES) to present “financial conditions” to attract foreign investors for Brazil’s important infrastructure projects; airports, ports, highways and railroads. In “early” February (before Carnaval) this “road show” will begin in SP (on February 5) and continue in New York, Tokyo and selected European cities. Sources: Brazil Focus, January 11-18, 2013 and Embassy of the Kingdom of the Netherlands. Covenant between government and private organizations to study the proposal for a new airport in the capital of Rio Grande do Sul The Secretary for Development and Investment Promotion (SDPI), Mauro Knijnik, and the President of the Federation of Industries of Rio Grande do Sul (Fiergs), Heitor Müller presented a study commissioned by an agreement between the Agency Gaúcha Development and Investment Promotion (AGDI), Fiergs and Fecomércio, which began mapping the pathways for the construction of a new airport in the metropolitan area of Porto Alegre. The estimated investment is between $ 800 million and $ 1.4 billion USD. The preliminary nature of the document also leaves open the location and future destination of the current and operational airport Salgado Filho airport. Charles Biedermann, managing partner of PWC, the consulting company that prepared the study, ensures the potential return on investment of between 6% and 8% per year, because there is no possibility of the coexistence for two large airports in Rio Grande do Sul. The NBSO-POA, perceives that the majority of the population of Rio Grande do Sul preferred the extension of the current runway, which is semiconcluded, but not fully operational yet. Source: Jornal do Comércio/RS, January 2013. New highway auctions The first phase of the auction for some 7,500 Km of federal highways (seven parcels) for private concessions (toll roads) will be held on 30th January. Apparently, the competition will be quite “keen” among six groups; CCR, Odebrecht, Invepar, Ecovias, Triunfo and Acciona. Some “new rules” will be part of this process: 1) if the lines of vehicles at toll stations exceed 200 meters or if takes longer than 15 minutes to go through a toll station – these toll stations would have to be “opened” (no tolls collected). The seven parcels are; 1) BR101 (Bahia) 772 Km; 2) BR262 (MG/ES) 377 Km; 3) BR50 (MG/GO) 426 Km; 4) BR153 (GO/TO) 814 Km; 5) BR060/153/262 (DF/GO/MG) 1,177 Km; 6) BR163/262/267 (MS) 1,423 Km; and 7) BR163 (MT) 822 Km. Another auction is planned for April for 5,700 Km of federal highways. This auction will also have some “new rules”; the bidders must have net assets of between RE 40 million and BRL 870 million depending on the parcel – to impede that mid-sized firms assume several concessions. The case in point was in 2007 when the Spanish firm OHL (alone and not in a consortium) won five of the seven concessions up for bid and was unable to perform the needed investments and had to “sell out” to a larger firm - Abertis. Source: Brazil Focus, January 11-18, 2013. Transnordestina railway still off the rails The Federal Government (Ministry of Transport) and private owned company CSN (Companhia Siderúrgica Nacional) one of the biggest Metals and Mining conglomerates (steel producers, as well as mining company) can´t reach an agreement on the additional funding required to finish the construction of this important 1.700 km infrastructural backbone of the Northeast. The Brazilian government, by means of the Federal Development Bank (BNDES), has so far been the largest source of (subsidized) financing. According to CSN, main shareholder of the project, changes in the route and unforeseen consequences of heavy rains in some stretches of the railway have resulted in estimated additional costs in the amount of BRL 2.8 billion (around USD 1,3 billion). These and other situations have allegedly been claimed by CSN to explain the delays in the project and why it will not become operational in 2013. It seems now that, assuming an agreement is reached without further significant delays most probably activities will only start in 2015. Source: Netherlands Business Support Office, Recife.



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Amazon The BNDES approved financing worth BRL 75,9 million for the Companhia Norte de Navegação e Portos S/A (Cianport). The BNDES investment makes a new export route available from Brazil’s Center-West region to China and Europe, using the logistical corridor of the BR-163 highway and the waterway Tapajós-Amazonas Source: Brazil Weekly, December 21, 2012. 3. Olie en gas ANP plans to revise local content rules The National Petroleum Agency announced that it would like to lower the minimum local content percentage in the public tenders. ANP’s proposal is to turn into national investments those activities related to maintenance of foreign vessels in Brazilian shipyards. This change would help the yards in the sense that they will continue to operate even without orders for vessels and platforms. The idea is to also widen the number of goods which can be considered local content. The local content rules has been effective since 1999, but it gained importance after the first term of Lula da Silva (Brazil’s President from 2003 to 2006 and reelected from 2007 to 2010), whose campaign’s focus was the strengthen of the national industry. The Brazilian suppliers, however, were not able to keep up with the fast increasing production of oil and gas and, consequently the big oil producers paid serious fines for not meeting the local content rule. ANP’s proposal starts to be analyzed by the industry in February and brought to discussion in March. If approved, the new rules will already apply for the contracts established in the 7th round tender (scheduled for 2013). The goal is to widen the products by groups, not individually as it is the case today. The Agency believes that this will speed up the process, since the service provider will receive one certification which will include many clients (groups of services) instead of one certificate per client, as it is the case today. SUPPLIERS: This resolution will help petroleum companies and shipyards, but the Brazilian suppliers are not completely in agreement with this change. In 2012 the industry of service and equipment was practically stagnant due to Petrobras’ investment’s reduction and the players fear that the reduction of orders will jeopardize the current achievements. ONIP (National Petroleum Industry Organization) will, together with the States Federations and Sectors Associations, analyze and give inputs to ANP’s resolution. Sources: NNPetro bulletim January 11, 2013 & Folha de São Paulo January 16, 2013. Nieuwe Petrobras raffinaderij in Maranhao Er bestaan plannen bij Petrobras om binnen twee jaar een nieuwe raffinaderij te beginnen in Maranhao. Petrobras signaleert al dat bedrijven die partners worden met het industrieel complex Suape meer kans zullen hebben om ook daar diensten en producten te kunnen leveren. Tijdens een gesprek met de Institutional Relations Manager van Petrobras in Pernambuco is de interesse uitgesproken voor Nederlandse bedrijven. In oktober is er een nieuwe editie van de Pernambuco Petroleum Business. Deze wordt georganiseerd door IBP Petrobras en de lokale (staat) overheid. Dit zou een geschikt event zijn voor de Nederlandse bedrijven om meer te weten te komen over de regio, de kansen en contacten te leggen. Bron: Bezoek aan Olie Raffinaderij Abreu & Lima. 4. Energie Wind energy is expected to grow in 2013 but it will become more expensive Due to the reduced number of energy tenders last year, and the Government’s wish to increase them, the Wind energy sector is expected to generate growing business in 2013. The cost, however, will rise. In 2012 there has only been one tender for new energy and the cost was very low for Wind energy specifically. This year, after the license withdraw of the Thermoeletric units (due to lack of investment), a new tender will have to fill this gap. The Brazilian Wind Energy Association (Abeeólica) expects at least two tenders with purchase of at least 2GW in order to accelerate growth. The cost will increase due to the amount needed to pay initial investments of bidders. According to Abeeólica, in order to avoid the setback which took place in 2012, the profits will have to be attractive; therefore the cost will consequently rise. Source: Reuters, January 14, 2013. 720 miljoen voor ethanol uit rijst Het Braziliaanse bedrijf Vinema Multióleos Vegetais sloot afgelopen week een intentieverklaring met de deelstaat Rio Grande do Sul voor het bouwen van zes fabrieken om ethanol uit rijst te verkrijgen. Tot 2020, wanneer alle locaties in gebruik zijn, wordt een bedrag van RS 720 miljoen (€ 269 miljoen) geïnvesteerd. De bijdrage van de deelstaat zelf is nog niet vastgesteld. De fabrieken zullen gebouwd worden in het zuiden van de deelstaat waar rijst gecultiveerd wordt. Met de bouw van de eerste



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fabriek wordt dit voorjaar begonnen. De bedoeling is dat de locatie eind 2014 in bedrijf kan worden genomen. Het project voorziet dat de zes productiecentrales naast energie uit de kaf van de rijst samen goed zijn voor 600.000 m3 ethanol. Bron: Agência Estado, 11 januari 2013. In times of possible power shortage new thermoelectric plants will start generating in March The summer has traditionally been a critical period for Brazil’s Federal Government. It is the season in which there is less water abundance and higher energy consumption (due to the very warm temperatures). Considering the strong dependence on hydro-electricity, it is therefore a period in which authorities must monitor water levels at hydro-electric plants as well as power consumption levels. This year Brazil has been hard hit with the tough reality. Since December 2012 the county is being confronted with a combination of dwindling water reserves in its major hydro-electricity reservoirs, and until the beginning of January insufficient rainfall to refill those reservoirs. This has sparked critical reactions from the opposition. It has also served to put Brazil’s power generation policy at the center of the political debate. While authorities, market observers and engineers keep entertained in figuring out whether there will be power rationing, the state of Ceará is preparing to get two new thermo-electric plants operational by March. These units known as UTE Pecém I and UTE Pecém II (UTE means Usina Termo-Elétrica) pertain to MPX, a private company (from EBX Group in Rio de Janeiro). Surprisingly both these plants will run on mineral coal. Besides Ceará, MPX will also inaugurate a new coal powered unit (UTE Itaqui) in Maranhão. The three units together were designed to generate 1.080 MW. Alongside these investments MPX also operates a Solar powered thermo-electricity generation unit in Tauá (State of Ceará). This unit has produced 2.312 MWh since July 2011. Last but not least, the company is building three other coal powered thermo-electric plants as well as three new gas powered units in Ceará and in Maranhão. Source: Diário do Nordeste, January 17 2013. 5. WK 2014 & OS 2016 Gebruik van particuliere beveiligers bij mega-evenementen De Braziliaanse Federale Politie gaat particulieren opleiden om ondersteunings- en beveiligingstaken uit te kunnen voeren tijdens de opkomende mega-evenementen. Nog voor de FIFA Confederations Cup (juni 2013) zullen duizenden particuliere beveiligers een intensieve cursus volgen van 200 uur, gericht op o.a. crowd-control en stadionbeveiliging. Het is voor het eerst dat er op zo’n grote schaal zal worden samengewerkt tussen politie en private beveiliging. Cursisten zullen niet alleen ingezet kunnen worden bij het WK 2014 en de Olympische Spelen in 2016, ook zal de sterk groeiende “private security” sector hierdoor kwalitatief een inhaalslag maken. Bron: O Globo, 8 januari 2013. 6. Onderwijs en Wetenschap Innovation Act is enacted in Paraná The governor of Parana, Beto Richa, recently signed the State Law of Innovation. The text already approved by the Legislature, creates benefits and establishes mechanisms for cooperation between the public and private sectors and educational institutes to encourage research and scientific and technological development in the state. The State of Paraná was the only state in the South and Southeast regions that had not yet passed a law on innovation. "The state needed a modern law to ensure the competitiveness and performance that the current Brazilian economic times require" said the governor. The new legislation allows the state to participate in investment funds of companies related to technological innovation projects. Projects approved by the government, through state-owned companies, as Tecpar, Iapar, Araucaria Foundation, among others, may benefit from economic subsidies, financing or participation from the government. Moreover, the new law allows the granting of tax incentives for the development of innovative projects. We see these scenarios as good opportunities for Dutch companies interested in partnerships in (South) Brazil. The official text of the new legislation was constructed based on public hearings involving the main stakeholders to stimulate mechanisms for scientific and technological production. The law is one of the main priorities of the Council of Thematic Industrial Policy, Innovation and Design created by Fiep which encompasses companies, unions, business productive sector, universities and research and development organizations. Source: Netherlands Business Support Office Porto Alegre & Fiep/PR, January 2013.



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7. Agribusiness 2012's harvest breaks record and reaches 162.1 million metric tons The 12th evaluation of the national production of cereals, legumes and oilseeds confirmed a record harvest of 162.1 million metric tons in 2012, 1.2% higher than the harvest obtained in 2011 (160.1 million metric tons) and 0.3% lower than the estimate of November (162.6 million metric tons). The area to be harvested in 2012, of 48.8 million hectares, presented an increase of 0.3% compared to the harvested area in 2011 (48.7 million hectares) and a decrease of -0.1% in relation to the previous month’s evaluation (48.9 million hectares). The three main cultures in this group: rice, corn and soybean - which together represent 91.6% of the production estimate, account for 85.1% of the area to be harvested. In relation to the previous year, rice presented an area reduction of 13.7%, corn, an expansion of 7.3% and soybean, an advance of 3.7%. Concerning production, corn was 27.0% bigger, whereas rice and soybean posted a drop of 15.4% and 12.3%, respectively, when compared to 2011. In December 2012, IBGE conducted the third estimate of the area and production for the harvest of 2013. The production of cereals, legumes and oilseeds is estimated at 178.0 million metric tons, 9.9% higher than the one harvested in 2012. This increase is due to the recovery and rise expected for the South (27.9%) and Northeast regions (32.3%), which faced weather problems in 2012. The area to be harvested might grow 4.0% in the South and 23.5% in the Northeast. The Central-West region presents a 4.1% area expansion, pushed by the products’ good prices, notably soybean and corn. The Southeast and North regions also estimate a larger area for grains in 2013, outweighing in 4.0% and 0.1%, respectively, the harvested areas in 2012. Bron: IBGE, 9 januari 2013. Nieuw – tegenvallend – record landbouwexporten Brazilië in 2012. Nederland wederom 3e bestemming De waarde van de Braziliaanse landbouwexport is in 2012 opnieuw gestegen tot USD 95,81 miljard. Dit is 40% van de totale export. Een nieuw record, dat wel, maar men had gehoopt dit jaar de USD 100 mrd te overstijgen. De export is ten opzichte van 2011 slechts met 1% gestegen. In 2012 werd – als gevolg van de economische crisis – de export negatief beïnvloed door de waardevermindering van een aantal belangrijke Braziliaanse exportproducten. De prijzen daalden met gemiddeld 7,1%. Dit heeft de stijging van 8,6% in het exportvolume vrijwel geneutraliseerd De producten die de grootste groei ten opzichte van 2011 laten zien waren soja (+ 8,2% tot USD 26,11 mrd, waarvan USD 17,45 aan sojabonen), tabak (+ 11% tot USD 3,3 mrd), graan en graanbereidingen (+60% tot USD 6,7 mrd), en katoen en katoenproducten (+21% tot USD 2,17 mrd). De droogte en tegenvallende oogsten in de VS heeft ervoor gezorgd dat de export van mais maar liefst verdubbelde: in 2012 werd voor USD 5,29 miljard geëxporteerd De export van ethanol steeg met 46,6% naar een waarde van USD 694 miljoen. Er werd totaal 2,48 miljoen ton verscheept; een stijging van 57,5% ten opzichte van 2011. De rundvleessector registreerde een toename in export van 7,39% naar USD 395,4 miljoen, een recordbedrag. Het exportvolume ging van 1,09 miljoen ton naar 1,24 miljoen ton, terwijl de gemiddelde exportprijs daalde met 5,3%. De export van levende dieren kende een stijging van 30,7% ten opzichte van vorig jaar: USD 492 miljoen naar USD 643 miljoen. Bestemmingen China blijft met USD 17,975 miljard de belangrijkste exportbestemming voor Braziliaanse landbouwproducten. Vervolgens de VS (USD 7 miljard), Nederland (USD 6,12 miljard), Japan (USD 3,5 miljard) en Duitsland (USD 3,1 miljard). De export van landbouwproducten naar Azië neemt sterk toe. Zo is de export naar Zuid Korea met 41% toegenomen en die naar Taiwan met 36%. Ook hier zijn mais en soja zijn belangrijke exportproducten. In 2012 werd voor USD 16,41 miljard aan landbouwproducten geïmporteerd, 6,2% minder dan 2011. Daardoor bereikte het saldo op de handelsbalans een recordhoogte van USD 79,41 miljard, 2,5% hoger dan in 2011. Bron: Landbouwraad.



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Voor 2012/2013 record graanoogst verwacht Volgens de meest recente voorspelling van CONAB, het Braziliaanse agentschap voor de voedselvoorziening, zal de nationale graanproductie over de periode 2012/2013 180,41 miljoen ton bedragen. Dit volume betekent een stijging van 8,6% oftewel 14,23 miljoen ton ten opzichte van de oogst van vorig jaar. Deze bedroeg 166,17 miljoen ton. Op dit moment staan de meeste gewassen in bloei en ontwikkelen zich goed. Komende tijd zijn goede weersomstandigheden met reguliere regenval essentieel voor een verdere goede ontwikkeling van de gewassen. Soja is qua volume het belangrijkste gewas. Naar verwachting zal de productie dit jaar met 16,28 miljoen ton tot 82,86 miljoen ton toenemen. Ook wat areaal betreft is soja het belangrijkste gewas. In vergelijking met 2011/2012, toen het areaal 25,04 miljoen ha bedroeg is dit seizoen 2,31 miljoen ha landbouwgrond méér met soja ingezaaid. Mais is het op een na belangrijkste gewas. Naar verwachting zal de Braziliaanse maisoogst in 2012/2013 een volume van 34,37 miljoen ton bereiken. Dat is een stijging van 2,5% ten opzichte van de vorige periode. Samen met de tweede oogst ofwel winteroogst kan de totale maisproductie de 72,19 miljoen ton halen. Dat is een kleine daling t.o.v. vorig jaar -1,1% t.o.v. 2011/2012. Mais heeft in alle deelstaten behalve São Paulo, Bahia en het Federaal District terrein verloren aan soja. Mogelijk dat in de deelstaat Rio Grande do Sul de oogst zal tegenvallen vanwege de droogte in een aantal regio’s daar. Bron: Agência Estado, 11 januari 2013. Brancheverenigingen publiceren exportprognoses 2013: het wordt een mooi jaar Na een jaar van min of meer stagnatie lijkt de export van landbouwproducten het komend jaar weer aan te trekken. Ondanks het pessimisme voor wat betreft suiker en mais is de verwachting dat de verkopen van vlees, koffie, sap en met name soja zullen stijgen. Volgens de ABIOVE, de Braziliaanse Associatie voor Industrieën voor Plantaardige Oliën zal de export van soja en afgeleide producten USD 30,2 mrd moeten opleveren; een verhoging van 15,7% t.o.v. vorig jaar. Deze schatting is gebaseerd op de verwachte recordoogst van soja die volgens de Braziliaanse regering 82,6 miljoen ton zal bedragen en de verhoogde vraag naar soja in Zuid Amerika. Ter vergelijking: in 2012 oogstte Brazilië 66 miljoen ton vanwege de droogte. ABIOVE voorziet een prijsstijging van 3,7%. Ook voor de rundvleessector ziet 2013 er positief uit. ABIEC, de Braziliaanse Associatie van Rundvlees Industrie en Exporteurs, verwacht dat de export van rundvlees met 10% het record van USD 5,7 mrd uit 2012 zal overstijgen. De verkopen zullen een impuls krijgen vanwege het verhoogde aanbod van vee in Brazilië. Zodoende kan de productie worden uitgebreid en worden ingesprongen op verminderde productie in de VS en Europa, waar de veestapel krimpt. De Braziliaanse Associatie van Varkensvlees Industrie en Exporteurs, ABIPECS, verwacht dat de export van varkensvlees komend jaar met 20% naar USD 1,8 mrd zal stijgen. In 2012 groeide het exportvolume met 12,6%. Wat de prijzen betreft voorziet men een stijging van 10%. Bovendien zal de langverwachte opening naar de Japanse markt – ‘s-werelds grootste importeur – in het 1e trimester van 2013 hoogstwaarschijnlijk een feit zijn. Bij de pluimveesector is men minder optimistisch. UBABEF, de Braziliaanse Pluimvee Associatie, ziet geen groeimogelijkheden voor komend jaar. De afzetmarkt is vrijwel geconsolideerd. In het beste geval kan de export 3% stijgen, zowel in volume als in opbrengst. In 2012 werd door Brazilië voor USD 7,2 mrd aan pluimvee geëxporteerd. Mais was dé grote verrassing van 2012. De export verdubbelde maar liefst. Voor komend jaar is het gissen. Volgens ANEC, de Nationale Associatie van Graanexporteurs, is de kans echter klein dat de export dit jaar die van vorig jaar zal overstijgen. Brazilië profiteerde toen van de droogte in de Verenigde Staten, waar toen 100 miljoen ton minder werd geoogst. Dat is meer dan de hele Braziliaanse maisproductie. Brazilië werd daardoor tweede producent op de wereldmarkt. Bron: www.beefpoint.com.br & Valor Economico, 16 januari 2013. Monsanto wil ethanolproductie uit sorghum een impuls geven EMBRAPA, het Braziliaanse onderzoeksinstituut voor de Landbouw, verwacht dat in het seizoen 2012/2013 100.000 ha voor de teelt van “zoete” sorghum zal worden gebruikt. Een sterke stijging ten opzichte van 2011/2012. Toen bedroeg het areaal 20.000 ha. Het betreft overwegend experimentele teelten. Uit zoete sorghum wordt ethanol gewonnen. Zoete sorghum is potentieel een interessant alternatief voor suikerriet voor de periode dat de oogst hiervan stilligt. Op dit moment zijn de resultaten echter nog niet zodanig dat de teelt van zoete sorghum voor ethanolwinning commercieel haalbaar is. Gemiddeld wordt nu 1500 liter ethanol per ha geproduceerd. De uitdagingen zijn nog groot, als men bedenkt dat in sommige projecten de productiviteit slechts 900 liter per ha betrof zoals bij Raízen, de grootste suiker- en ethanolproducent in Brazilië (joint venture Cosan en Shell). Ook ethanol producenten Nova Fronteira Bioenergia (Petrobras Biocombustível /São Martinho) en CleAlcool experimenteren met dit gewas. De suikerrietdivisie van Monsanto, actief onder de merknaam CanaVialis, is drie jaar geleden begonnen met de ontwikkeling en het gebruik van deze plant voor ethanol winning. Monsanto is Brazil Business in Brief


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overtuigd van het potentieel van dit gewas en wil het proces versnellen en werkt daarbij samen met landbouwwerktuigbouwer Case IH en het biotechbedrijf Novozymes. Doel is de productiviteit te verhogen van 1500 naar 2500 liter ethanol per ha. Case IH probeert de machines die nu bij de aanplant en oogst van suikerriet gebruikt worden geschikt te maken voor de teelt van sorghum. Voor het Deense Novozymes is het de eerste keer dat het bedrijf bij een sorghum project in Brazilië betrokken is. De resultaten van de eerste testen met enzymen om meer suikers uit sorghum te extraheren zijn veelbelovend en laten een stijging van 6% zien, met een betere viscositeit. Monsanto investeert jaarlijks RS 30 – RS 35 miljoen (€ 11-13 miljoen) in haar suikerrietdivisie en gaat uit van een potentiele markt voor sorghum van 1,3 miljoen ha uitsluitend voor de productie van ethanol. Bron: Valor Economico, 23 januari 2013. 8. Vakbeurzen in Brazilië InfraBrasil Expo & Summit São Paulo, January 28-29, 2013 www.infrabrasilsummit.com.br Feicon Batmat - International (infrastructure fair) São Paulo, March 12-16, 2013 www.feicon.com.br/en/The-Fair/Presentation/ Technical seminar 'Cost optimization in Brazilian operations' (inclusief Brazilian business borrel) Locatie: Kamer van Koophandel, Rotterdam, 13 Maart 2013, 13:00 - 18:00 www.dutcham.nl Brasil Road Expo 2013 - Road Infrastructure São Paulo, March 19-21, 2013 www.brazilroadexpo.com.br CeMAT South America (International Materials Handling and Logistics Trade Fair) Sao Paulo, March 19-22, 2013 cemat-southamerica.com.br/en Expoagro Afubra - Agricultural Fair of Technologies, Products and Services Rio Pardo, March 20-22, 2013 www.afubra.com.br/ FIEE - International Electrical, Electronic, Energy & Automation Fair São Paulo, April 1-5, 2013 http://www.fiee.com.br/ Intermodal South Intermodal South America (transport en logistiek) São Paulo, April 2-4, 2013 www.intermodal.com.br Laad Security (International Defence and Security Fair) Rio de Janeiro, April 9-12, 2013 www.laadsecurity.com Intersecurity (urban security fair) São Paulo, April 16-18, 2013 www.intersecurityexpo.com.br Rio Boat Show 2013 Rio de Janeiro, April 25 – May 1, 2013 www.rioboatshow.com.br Agrishow, International Trade Fair for Agricultural Technology in Action Ribeirão Preto, April 29 – May 3, 2013 www.agrishow.com.br/ Feira Biomassa e Bioenergia - Biomass and Bio-energy Fair Florianopolis, May 14-16, 2013 www.feirabioenergia.com.br



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Hospitalar (International Products, Equipment, Services and Technology Fair for Hospitals, Laboratories, Pharmacies, Clinics, and Exam Rooms) São Paulo, May 21-24, 2013 www.hospitalar.com Airport Infra Expo (Latin American Airport Infrastructure Seminar & Exhibition) São Paulo, May 22-24, 2013 www.airportinfraexpo.com.br Brasil Offshore - International Offshore Oil & Gas Trade Show and Conference Macaé - Rio de Janeiro, June 11-14, 2013 www.brasiloffshore.com/ Fispal Tecnologia (International Food and Beverages Industry Packaging, Processes and Logistics Fair) São Paulo, June 25-28, 2013 www.fispaltecnologia.com.br Fispal Food Service (International Out-of-Home Dining Products and Services Fair) São Paulo, June 25-28, 2013 www.fispalfoodservice.com.br Expo Aero Brasil – EAB (International Aeronautical Fair) São Paulo, July 11-14, 2013 www.expoaerobrasil.com.br Frutal 2013, International Week of Fruit Crops, Floriculture and Agribusiness Fortaleza, September 9-12, 2013 www.frutal.org.br Verdere informatie over beurzen en tentoonstellingen in Brazilië zijn te vinden via de volgende link: http://www.brasilglobalnet.gov.br/ARQUIVOS/Publicacoes/CalendarioFeiras2013p.pdf Voor vakbeurzen op het gebied van agro-business, zie: http://brazilie.nlambassade.org/producten-endiensten/landbouw/landbouw/minbuza%3Ashare/beurzen---fairs---feiras-e-exposicoes.html



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Brazil Business in Brief

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