Tuesday 20 November 2012

How Brazil produces cheaper and exports expensive commodities

A couple waits for a ride on the side of highway BR-364 as trucks carrying agricultural commodities pass in Mato Grosso state, September 17, 2012. With its rail and river networks underdeveloped, Brazil depends heavily on trucking to move its valuable commodities to port. But traffic bottlenecks, backlogs at port, bureaucracy, and high fuel and labour costs amount to a handicap for the country in its ambitions as a global breadbasket. Picture taken September 17, 2012. REUTERS-Nacho Doce The long, brutal haul from farm to port in Brazil

 "The cost of Mendonça's haul amounted to nearly 40 percent of what the 37 metric tonnes (40.7 tons) of corn sold for in Santos. Transport across a similar distance in the United States, mostly by barge, amounts to only 10 percent of the price of U.S. corn at port."

http://www.reuters.com/article/2012/11/01/us-brazil-transport-grains-idUSBRE8A014020121101

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