Nº 24. 22 – 28 January
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MINAS GERAIS ANNOUNCES THRE NEW PLANTS
The government of Minas Gerais has signed memoranda of understanding to set up
three new plants in the state, which will require investments of around R$ 850
million. When these projects are in full operation, the milling capacity will be 6.24
million tons of sugar cane, with production reaching 426.9 million liters of alcohol,
166,800 tons of sugar and a 198 MW co-generation. Groups that should start
operations in the state include Chalet Agropecuária (Usinas Nova Energia),
Transcap Álcool e Açúcar S.A. (Usina Capinópolis) and Destilaria São Benedito.
DREYFUS INCREASES INVESTMENT IN BRAZIL
With a global strategy to further integrate its business, Louis Dreyfus Commodities should invest more than
US$ 800 million in Brazil in 2004-2009, triggered by structural changes in the sugar/alcohol and orange
juice markets. Kenneth Geld, president of the Brazilian subsidiary of the French group, says US$ 290
million were invested in 2004-2006, and at least US$ 516 million will be disbursed in the next three years.
Funds are mostly used to strengthen the sugar and alcohol sector, but orange, soybean, coffee, cotton and
logistics are also being considered. The group also intends to make its debut in biodiesel and fertilizers in
the country.
MAEDA GROUP AND BRASILAGRO FORM A PARTNERSHIP
Rural real estate investment company BrasilAgro and Maeda Group have signed a partnership aimed at
increasing soybean and cotton production and lowering production costs. The two companies signed a
memorandum of understanding to form a joint venture whose first action is to buy land in the west of the
state of Bahia; R$ 35 million will be invested in the purchase of 31,500 hectares for cotton, soybean and
corn production.
CONSORTIUM TO SET UP A BIODIESEL PLANT IN TOCANTINS
Global Agrienergy, a consortium consisting of Sao Paulo-based companies Vigna Brasil and Agropecuária
Terravista, has announced it will set up a biodiesel plant in the state of Tocantins, with an investment
estimated at R$ 60 million, which will be used to set up an oilseed crusher, a biofuel plant, and plantation
of oilseeds such as jatropha and sunflower. The industrial complex will be located between Palmas and
Paraíso do Tocantins, in the central region of the state, and will have the capacity to produce 100 million
liters of biofuel per annum.
US$ 2.4 BILLION INVESTMENT IN PHOSPHATIC AND NITROGENOUS FERTILIZERS
Brazil will stop importing 2.46 million tons of phosphatic and nitrogenous fertilizers in six years. This
estimate is based on a planned investment of US$ 2.4 billion by the country’s industry. The sector wants to
increase domestic phosphatic and nitrogenous fertilizer supply by 30 percent by developing two mines and
building a factory. An economic feasibility study of the mines has already been completed. The industrial
plant will be set up in a state in the center-west of the country, probably in Mato Grosso. Galvani, Bunge,
Petrobras, Mosaic and Fosfertil are involved in the project.
USINAVI PURCHASES LAND TO SET UP A NEW DISTILLERY IN IGUATEMI (MATO GROSSO DO
SUL)
Usinavi (Usina Naviraí Sociedade Anônima), Coopernavi subsidiary, has bought a property to set up an
alcohol production plant in Iguatemi, state of Mato Grosso do Sul. The estate is São José dos Torres,
purchased at R$ 11.88 million, through Wanchopp fund, connected to the Bill Kidds & Infinity Bio Energy
group. Correio do Estado daily newspaper found that a R$ 5.924 million advance was given at the end of
last year.