Singapore expands number of approved Brazilian chicken producers

Singapore has granted four Brazilian slaughter houses to export
chicken to the country, and one to export pork. Currently,
Singapore is among the four largest buyers of Brazilian pork and
among the ten largest chicken importers. The approved chicken
slaughter houses included two JBS units and one Frango Pioneiro,
in the state of Parana, plus Vibra Alimentos, in the state of Minas
Gerais. The pork producing unit belongs to Cooperativa Languiru,
in the state of Rio Grande do Sul.

The number of vessels waiting to load sugar at Brazilian ports fell
from 29 to 17 over the last week, according to Williams, a ship
agency. 499,000 tons are scheduled to load, out of which 45% will
be loaded in the port of Santos, 44% at Paranagua, and 11% at
Maceio.

Brazilian beef exports reached 1.3 million tons between January
and November 2016, exceeding 2015 volumes over the same
period by 1.7%. Revenues, however, fell 6% in the same
comparison, to US$5 billion. According to Abiec, an industry
association, exchange rate variation has been largely responsible
for the drop.

Brazil’s autoparts trade balance has registered a US$4.9 billion
déficit between January and November 2016, a 14.2% drop than
that registered in the same months of 2015. Exports reached
US$5.98 billion while imports stood at US$10.9 billion, a 14.8%
and 13% drop respectively. Argentina remains the main
destination for Brazilian exports, at 28.5% of the total.

Source: Datamar

Brazil and US sign deal to end cotton dispute

Brazil and the United States entered into an agreement to settle the trade controversy over subsidies paid by the US government to the country’s cotton farmers.

Brazil’s Ministry of Foreign Relations reported that the two countries signed a memorandum of understanding on the cotton dispute on Wednesday (Oct. 1st), in Washington, “successfully settling a dispute that stretched for more than a decade.”
Foreign Minister Luiz Alberto Figueiredo traveled to the US alongside the Minister of Agriculture, Livestock, and Supplies, Neri Geller, to close the deal and sign the memorandum. In a statement, the Foreign Ministry said that “the bilateral agreement includes additional payments of $300 million, with flexibility for the allocation of resources, which helps to mitigate the losses sustained by Brazilian cotton farmers.”
Since the agreement applies to the cotton industry only, Brazil will still have the right to challenge the US Farm Bill before the World Trade Organization (WTO) regarding other crops.
The cotton dispute began in 2002, when Brazilian cotton farmers asked the government to file a dispute settlement case with the WTO challenging the fairness of subsidies granted by the US government to American cotton farmers and export insurance programs. The US incentives were found to be trade-distorting based on the WTO’s Agreements on Agriculture and Subsidies and Countervailing Measures.
In 2009, the WTO allowed Brazil to retaliate the US by up to $829 million. Since retaliation could have other negative impacts and would not directly benefit cotton farmers themselves, an agreement was reached whereby the US would have to pay $147.3 million every year to the Brazilian Cotton Institute created to manage the funds. In October last year, however, the payments were suspended following the passing of a new farm bill by the US Congress.
The new law maintained the payment of subsidies, violating international trade rules. As Brazil’s Foreign Ministry now reports, “under the Memorandum signed today, the United States pledged to make adjustments in its credit and export guarantee program GSM-102, which will operate within the parameters negotiated bilaterally, thus providing better conditions for the competitiveness of Brazilian products in the international market.”
Source: Agencia Brasil

 

Oil and gas output breaks record in August

Brazil’s total production of oil and natural gas in August added up to a daily 2.89 barrels equivalent per day (boe/d): 2.326 million barrels of oil per day (bo/d) plus 90.9 million m³ of natural gas everyday (m³/d). According to the National Agency for Petroleum, Natural Gas and Biofuels (ANP), this is the highest volume ever observed, surpassing the previous month, when the production of oil and natural gas amounted to 2.82 million boe/d.

ANP announced that the oil output also went beyond last month’s 2.267 million bo/d. There has been a rise of 2.6% in the oil output compared to July 2014, and 15.7% against August, 2013. Its natural gas counterpart was 3.4% higher than the rate reported in July 2014 (87.9 million m³/d), and 18.1% above the figure for August 2013.
The presalt production expanded 11% compared to the previous month, totaling 647 thousand boe/d, or 533 thousand bo/d and 18.1 million m³/d of natural gas. The production stemmed from 35 wells, located in the oil fields of Baleia Azul, Baleia Franca, Jubarte, Barracuda, Caratinga, Linguado, Lula, Marlim Leste, Pampo, Sapinhoá, Trilha and in the areas of Iara and   Entorno de Iara.
The use of natural gas in the month stood at 95%, and its burn rate at 4.549 million m³/d—an increase of approximately 1% against the month before, and 38.5% against August 2013. The main reasons for the increase in the amount of natural gas burnt were the platforms P-55 and P-62, located in the Roncador Field, which has recently become operational.
Source: Agencia Brasil