The Revolution will not be televised
Was looking at some agricultural info and ran into this nugget from
AgWeb:
Brazilian Soybean Market Paralyzed Due to Protests of Producers
The soybean supply chain in Brazil has been going through very difficult times. Last week’s events in the Center-West states evince the problems producers are facing in terms of lack of revenue.
The movement called Grito do Ipiranga originated in the state of Mato Grosso and has already spread into neighboring states, as well as southern and northwestern states, where storage units, roads and railroads are blocked, thereby preventing production from reaching the ports.
And it just keeps getting better and better:
Among other issues, producers press for the creation of a specific exchange rate for the sector, interest rate reductions, diesel cost reductions, the opening of new credit lines for Asian Soybean Rust (ASR) control and the postponement of operating and investment debts. Blockages have paralyzed the Brazilian soybean market completely. Shipping companies no longer offer freight quotes; Ferronorte (the railroad linking the southern region of Mato Grosso to the Port of Santos) has suspended its soybean activities since May 4 th, as there is no soybean left in their warehouses and it cannot be purchased in the market either.
In the midst of this crisis stand the fertilizer and agrochemical companies that expected to receive a large number of promissory notes due in late April and which are now being put off till late May. Some agrochemical companies face insolvency rates as high as 70-90% in certain states. Producers’ delay in paying off their debts will cause a reduction in the offer of private credit for the next crop season, which starts in September/October.
Export trading companies (ETCs) also face a difficult situation. These companies traditionally hire vessels months in advance for the shipping of soybean from Brazilian ports. And now many of these companies are simply unable to make use of the full loading capacity of such vessels, generating costs with daily fines of up to $ 30,000 for ships moored at Brazilian ports.
According to movement sources, protests should continue until May 16 th, when a demonstration is to take place in Brasília, with rural producers from various states. Producers expect that at least part of their claims be fulfilled; however, most of them are banned by the strict fiscal policy of the Brazilian Ministry of Finance. In view of the latest events, the picture for the next crop season looms clearer: a marked reduction in both personal credit for agriculture and area under cultivation. An estimated reduction of 3.7 million ha (9.14 million acres) in soybean area is expected, with many producers quitting – mainly the most heavily indebted.
I know that Venezuela is the country to watch as it tries to reinvent itself as a Marxist workers paradise but Brazil might not be that far behind especially with their TBA (Triple Border Area) being such a haven for
Islamist Terrorists...
But of course, this time, the revolution will be done properly and it will succeed. Communism is up to several hundred million dead these days, what's another nation or two.
Posted by DaveH at May 11, 2006 3:27 PM