Public Relations in Brazil

Over the next two-three years, developing countries led by China and Brazil will overtake rich nations in adopting genetically modified crops, said Clive James,  chairman of the U.S.-based International Service for the Acquisition of Agri-biotech Applications (ISAAA), quoted by The Wall Street Journal. According to the cientist, Currently, 46% of the land under genetically modified crops is in developing countries, but their share will increase to more than half in two-three years. Recently, the industry funded group announced that Brazil had become second biggest biotech grower after the US. It also said industry predicts big increases in GM soybean, maize and cotton production in 2010.

A wide survey by the World Economic Fórum (WEF)shows that the average  number of women holding the CEO level position in Brazil is high – 11% – if compared with more advanced countries, like Belgium, Canada, France, the Netherlands, Switzerland, the United Kingdom and the United States, which have no female CEOs among the 600 responding companies. “The Corporate Gender Gap – 2010”, just released by the WEF, also shows that Brazil is not low in the ranking when it comes to number of women who work in the country: 34,76.%. The country, however, has its downturns. Of those surveyed, the countries in which the lowest number of companies offer parental leave were Mexico (18%), Brazil (33%) and India (54%). Almost all countries are implementing some form of affirmative policies. In the United Kingdom and the United States, all companies that completed the survey affirmed that they have established such measures (quotas, targets and/or other affirmative policies). On the other end of the scale lies Brazil, with  0%. In its introduction, the report says: “The Global Gender Gap confirm the correlation between gender equality and the level of development of countries, this providing support to the theory that empowering women leads to a more efficient use of a nation´s human talents.

In 10 years time, Brazil will increase its market share of meat exports – beef, pork and poultry – to 44.5% of world trade in the sector. At the moment, Brazil’s share of the world meat export market is 37.4%. According to forecasts at the ministry of Agriculture, exports of poultry, now 41.4% of the world export market will rise to 48.1%. Beef exports, now 25%, will rise to 30.3%. And pork exports, now 12.4%, will rise to 14.2%. “The only reason these numbers are not better is because of the world financial crisis,” explains José Garcia Gasques, the coordinator- general for Strategic Affairs at the ministry, adding that domestic Brazilian product of meats is expected to rise over 37% between now and 2020, which will mean an additional 8.4 million tons. To people worried about environment destruction, Mauro Pires, director of the Department for Combating Deforestation Policy at the Ministry of Environment, says Brazil  big enough to protect its ecosystems while farming on large scales. “As Brazil becomes more productive using modern technology and better land management skills, we all win because there will be less destruction.” He adds: “With more meat production, Brazil becomes more competitive in exports. But this expansion must be confined to open areas so that further deforestation is avoided.”

Brazilian industrial production had its biggest rise for a January in 15 years: the industrial output rose 16,9% from January 2009, according to the census bureau IBGE. It said that the double-digit jump from a year earlier–which was the largest for a January since 1995–reflected the low base of comparison as January 2009 was still in the trough of the global economic downturn.

Paulo Leme, an economist at Goldman Sachs, told The Wall Street Journal that industrial production has returned to the high level recorded in January 2008. “After expanding vigorously for about 10 months, the pace of growth of industrial output has accommodated,” he said. Now, the big question is if Brazilian Central Bank is goig to raise the benchmarking Selic tax in its setting committee meeting, due to be held in 12 days time. he Selic is at all time low at 8.75%. Some analysts believe that the committee will wait at least a month more before raising it.

Brazil’s resilience during the economic crisis has made it a favorite investor destination and the country will soon play host to the world’s largest initial public offering, or IPO, this year, according to the Wall Street Journal. OSX Brasil SA, a shipbuilder belonging to the Brazilian billionaire Eike Batista (photo), disclosed plans to raise from 5.5 billion Brazilian reais to 7.35 billion reais (US$3.1 billion to US$4.1 billion)  through its IPO on the Brazilian stock exchange, the Journal reported. These numbers surpass the $2.3 billion raised by China’s Huatai Securities in February. “This huge IPO shows the extent of the interest in Brazilian assets. And since OSX is linked to the oil business, it will likely perform well,” said Joao Pedro Brugger, a manager of the local Leme investment fund, quoted by the paper. Eike Batista is considered to be a wild business man, sometimes classified as “adventurous”. Recently, he became the wealthiest person in Brazil, with an estimated fortune of US$16 billion.

By Betting in Brazil

You are a multinational company with a new product. Where will you test market: San Francisco, London, Jakarta, Switzerland, Japan or Brazil ?

Take a guess.

7.000 new products were introduced in Brazil in the first semester of 2009. Nearly 6% of all new products introduced in the world. Why?

For various reasons.

1. Brazil has the youngest population, excluding Africa, of the world. 26 year average, just in the beginning of a life cycle. That is a wonderful market to try new products. If you choose Switzerland, were everyone is loyal to a 30 year old brand, you may not be that successful.

2. Brazilians for many other reasons, are curious, technologically bent, and will try out everything new. We have more cell phones, more people on the internet, 80% of ORKUT affiliates of the world are Brazilian.

3. We speak a single language, USA has two, Switzerland has 4, and so on. Great for reducing advertising costs.  Read more.

Brazil  registered record motor vehicle sales for the month of February, rising 3.1% on the month before, according to unnamed industry sources cited by local Estado newswire. Sales of autobiles, light commercial vehicles, trucks and buses totaled 213,312 units, up from 199,366 units in February 2009, according to preliminary industry data cited by the sources. The market for cars in Brazil is booming. Sales of all vehicles in the country reached 3.14 million last year, an all-time record and an 11% increase on 2008. Topping the sales was Fiat with 737,000 vehicles followed by Volkswagen with 686,000 and GM with 595,000. Like so many sectors in Brazil at the moment, the automobile market offers potential for huge growth. Brazil´s population numbers around 200 million, but the ratio of cars to people is one car per seven people. Compare this to the US where the ratio comes in at one car per 1.2 Americans and it´s easy to appreciate the potential.

The US government has launched  a new offensive to convince Brazil to purchase its F-18 fighter jets. A few days ago, the giant US aircraft carrier USS Carl Vinson arrived in Rio de Janeiro with some of the US-made planes aboard. Later, US Rear Admiral, Ted Branch, said that the carrier visit was aimed at improving ties with Brazilian navy, following operations in the striken Haiti. However, the presence of the nuclear powered craft and the Super Hornet fighters on its deck, along with Boeing representatives on land, are a clear sign of a US push. When arriving in Brasília this week, apart from Iran, Secretary of State Hillary Clinton will have a special subject to talk to Brazilian authorites: the advantages of the F-18 jets in comparison with the French Rafale – some say this will be Brazil´s choice – and the Sweedish Saab Grispen NG. Recently, president Luiz InácioLula da Silva stated that the decision regarding the 36 fighters to supply the Air Force was not yet made. Boeing representative, Michael Coggins,  told reporters that the visit by Secretary of State Hillary Clinton will show that “a partnership with the US makes a lot of sense for Brazil.

Petrobras, Brazil’s state-owned oil and gas giant, announced it has just made two separate discoveries of oil in the Campos basin near the country’s coast, with recoverable reserves of 40 million and 25 million barrels. News of offshore discoveries is now a weekly occurrence as companies like Petrobras and OGX, owned by Brazilian billionaire Eike Batista, progress with exploration of offshore blocs.  Brazil’s oil output is expected to rise significantly over the next decade, mainly due to the discovery of the potentially huge pre-salt reserves, which analysts have estimated could contain somewhere between 50 billion and 80 billion barrels of crude.  A few days ago, Petrobras also announced new oil discoveries off shore Angola. The good news coincided with a research by the consulting company PFC on market value it did on several companies, and Petrobras ranked number 4 among the 50 biggest energy companies of the world.

In its recent  The World Economic Outlook,  the International Monetary Fund (IMF) revised up global forecasts to near 4% in 2010. According to the report, the global economy, battered by two years of crisis, is recovering faster than previously anticipated, with world growth bouncing back from negative territory in 2009 to a forecast 3.9 percent this year and 4.3 percent in 2011. But the recovery is proceeding at different speeds around the world, with emerging markets leading the way to recovery. This is the case of Brasil whose economy is set to grow by 4.7% instead of the 3.6 forecast earlier. Analysts say investing  in Brazil could be safer option than in some other countries. When Goldman Sachs predicted that Brazil was to become a leading global power by 2050 as one of the fast-growth “BRIC” economies, some foreign investors were rightfully skeptical. But if anything, that timetable has accelerated. Today, Brazil is set to take over France and the United Kingdom as the world’s fifth-largest economy as early as 2025.