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Cargill's latest announcement

pointrider

Well-known member
According to the Arizona Republic newspaper that I purchased this morning, Cargill announced yesterday that they have made the decision to invest $100 million in a new poultry processing plant in Brazil.
 

agman

Well-known member
pointrider said:
According to the Arizona Republic newspaper that I purchased this morning, Cargill announced yesterday that they have made the decision to invest $100 million in a new poultry processing plant in Brazil.

If you read the entire article they indicated they expected significant demand growth for chicken in Brazil. Most expansion is to serve the local and regional market.
 

Sandhusker

Well-known member
agman said:
pointrider said:
According to the Arizona Republic newspaper that I purchased this morning, Cargill announced yesterday that they have made the decision to invest $100 million in a new poultry processing plant in Brazil.

If you read the entire article they indicated they expected significant demand growth for chicken in Brazil. Most expansion is to serve the local and regional market.

You've said that before. I didn't believe it then, either.
 

Econ101

Well-known member
World > Americas
from the December 14, 2004 edition

Brazilian chicken flies past US
By Andrew Downie | Correspondent of The Christian Science Monitor
RIO DE JANEIRO – There are some things that will always be linked with Brazil: soccer, sand, and samba, to name a few. Now there is a new - and unlikely - name bidding for a place on the list: chicken.


Related stories
06/18/04
'Global South' flexes its trade muscle in Brazil



In the Monitor
Tuesday, 06/06/06



Buoyed by fresh opportunities in the Middle East and Asia, Brazilian poultry farmers have sharply increased production and are expected to overtake the United States and end the year as the world's No. 1 chicken exporter.

Already the world's largest exporter of beef and soy beans, Brazil's emergence as a poultry powerhouse is a sign of the country's growing importance in the world of agriculture. Its modern and economical production process, coupled with savvy trade deals with other developing nations, is likely to have Brazil's competitors squawking for years to come.

In 1997, Brazil's chicken exports were less than a third those of the US. But production has taken off since 2000 - growth averaged 20 percent the past two years - and today Brazil exports to 127 different countries and controls 36 percent of the world share, according to Claudio Martinez, executive director of the Brazilian Association of Chicken Exporters.

The main markets are in the Middle East and Asia, particularly China. With talks of the proposed Free Trade Area of the Americas and a deal with the European Union breaking down, Brazil has forged closer trade ties with behemoths in the developing world. President Luíz Inacio Lula da Silva has aggressively pursued better relations with countries like China, Russia, and India.

The Chinese in particular are keen to strengthen trade relations with Latin America. Chinese Premier Hu Jintao last month promised to invest more than $100 billion in the region over the next 10 years. Brazilian chicken exporters would benefit through a deal government officials said will be worth $200 million a year by 2005. The agreement will help boost Brazilian exports to a region already feasting on Brazilian drumsticks. When Asian producers were laid low by Avian influenza earlier this year, their Brazilians competitors moved in, and exports to Asia went up 84 percent between January and October.

There are other, more established reasons for the rise, Mr. Martinez adds. Brazil's industry is relatively new and therefore modern. Production costs are up to 25 percent lower than in the US. And sanitary controls have helped keep the country's birds free of pests.

American officials say Brazil cannot guarantee their birds are disease free and so are banned from the US. Brazil strenuously rejects that claim and banned US imports in retaliation. Brazilian officials say they hope that, as the two biggest exporters, they can set an example and overcome the stalemate. The planned creation of a world poultry exporters organization would help producers resolve conflicts, Martinez says.

If it does, Americans might recognize there is more to Brazil than Portuguese and Pele. Now there's poultry, too.
 

RoperAB

Well-known member
On TV ag shows up here they have been doing stories on Brazil for years.
The jest of all the shows is that Brazil the potential to produce crops and beef way cheaper than we could ever do here in North America and they are a big threat to producers in North America.
The only way we could ever compete with them once they get producing to full capacity would be to convince consumers that we have a safer, better product which isnt going to happen with rcalf, negative newspaper ads about bse.
 

Sandhusker

Well-known member
They're going into a country that will soon be the world's leading exporter so they can serve the local and regional markets? I suppose their soybean operations are there for the local markets, too? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Come on, Agman, this isn't seventh grade ag class here! :wink:
 

Econ101

Well-known member
Sandhusker said:
They're going into a country that will soon be the world's leading exporter so they can serve the local and regional markets? I suppose their soybean operations are there for the local markets, too? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Agman has gone off the deep end.
 

RoperAB

Well-known member
Sandhusker said:
They're going into a country that will soon be the world's leading exporter so they can serve the local and regional markets? I suppose their soybean operations are there for the local markets, too? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Brazil is still very much the wild, wild west. But thats changing fast.
Seriously I think North American producers should noty be fighting each other.
 

Econ101

Well-known member
RoperAB said:
Sandhusker said:
They're going into a country that will soon be the world's leading exporter so they can serve the local and regional markets? I suppose their soybean operations are there for the local markets, too? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Brazil is still very much the wild, wild west. But thats changing fast.
Seriously I think North American producers should noty be fighting each other.

It is easier for Tyson to unite its policy than producers to unite theirs. It is one of the reasons the PSA was written the way it was--so packers could not divide and conquer.
 

agman

Well-known member
Sandhusker said:
agman said:
pointrider said:
According to the Arizona Republic newspaper that I purchased this morning, Cargill announced yesterday that they have made the decision to invest $100 million in a new poultry processing plant in Brazil.

If you read the entire article they indicated they expected significant demand growth for chicken in Brazil. Most expansion is to serve the local and regional market.

You've said that before. I didn't believe it then, either.

With your limited knowledge of this subject I would not expect you to understand.
 

agman

Well-known member
Econ101 said:
Sandhusker said:
They're going into a country that will soon be the world's leading exporter so they can serve the local and regional markets? I suppose their soybean operations are there for the local markets, too? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

Agman has gone off the deep end.

If I have gone off the deep end then show all of us how much product produced by Cargill abroad enters the U.S. versus that which is sold in the local and regional markets. Facts only need be presented. Your stream of phony and misleading comments won't get you by.
 

Sandhusker

Well-known member
agman said:
Sandhusker said:
agman said:
If you read the entire article they indicated they expected significant demand growth for chicken in Brazil. Most expansion is to serve the local and regional market.

You've said that before. I didn't believe it then, either.

With your limited knowledge of this subject I would not expect you to understand.

I understand that when a corner already has two drug stores on it, you don't open another. Brazil is striving to be the worlds biggest exporter of chickens - this tells me they have a lot of chickens. I don't think the local market in a place aleady loaded with chickens is the best investment.

Is Cargill in the Brazil bean market to serve the local markets? Are they expanding in Canada to serve the Canadian markets?

Companies expanding into other countries for the local markets may be what used to be before all this free trade crap, but don't try to tell us that is the case here.
 

agman

Well-known member
Sandhusker said:
agman said:
Sandhusker said:
You've said that before. I didn't believe it then, either.

With your limited knowledge of this subject I would not expect you to understand.

I understand that when a corner already has two drug stores on it, you don't open another. Brazil is striving to be the worlds biggest exporter of chickens - this tells me they have a lot of chickens. I don't think the local market in a place aleady loaded with chickens is the best investment.

Is Cargill in the Brazil bean market to serve the local markets? Are they expanding in Canada to serve the Canadian markets?

Companies expanding into other countries for the local markets may be what used to be before all this free trade crap, but don't try to tell us that is the case here.

If you have any research to refute the Fed's analysis which I previously provided or Cargill's statement then present it or go back and play in your sandbox.

Tell me what you know actually about Cargill's bean business in Brazil. Much of the investment in Brazil is being made by many very large Brazilian producers. Some of the largest producers have over 500,000 acres under row crop cultivation

Current estimates have Brazilian bean production at 56.5 MMT versus 84 MMT in the U.S. Brazilian exports are estimated at 25.99 MMT or 45% of their production while U.S exports are estimated at 24.49 MMT or 29% of U.S production. It appears both countries retain more of their production then they export. BTW, China imports 51% of total world bean imports.

Perhaps you would want to compare corn? The U.S produces 39% (268 MMT) of world corn production but accounts for 70% of world corn export trade. The U.S exports 21.5% of its corn producion. On the other hand Brazil produces 40.5 MMT of corn and and exports 1 MMT or 2.5% of their production. Is Cargill not also in the corn business in Brazil-yes or no? Now is there anything else you care to discuss per this subject.

Perhaps you have done your own studies regarding why corporations relocate their manufacturing facilities and where that production gets distributed. I am certain the Fed economists would like to be enlightened by the results of your extensive survey and analysis conducted from Valentine NE. The next time I meet with them, which will likely be in December, I will be certain to discuss your observations and conclusions with them. In fact, I will make a request that it have a high priority on their agenda. See, I am looking out for you Sandhusker.
 

Econ101

Well-known member
Agman, there are a lot of people who value non price items in food from Brazil like rain forests. Without Country of Origin Labeling, U.S. producers have a hard time advertising their product with this angle.

Do you support the dominance of these large food companies at the expense of values that are not exploited because of our govt.'s policy?
 

rjk

Well-known member
It's been Cargill's approach for over a hundred years to take raw ag products and add value by processing and/or transporting them to the market. Like any other company, it exists to be profitable by providing a product or service.
I'm pretty simple-minded, but what's your point about Brazil?
 

Sandhusker

Well-known member
Agman, "Tell me what you know actually about Cargill's bean business in Brazil. Much of the investment in Brazil is being made by many very large Brazilian producers. Some of the largest producers have over 500,000 acres under row crop cultivation"

I knew that, although that little tidbit has nothing to do with Cargill's marketing stratety.

Agman, "Current estimates have Brazilian bean production at 56.5 MMT versus 84 MMT in the U.S. Brazilian exports are estimated at 25.99 MMT or 45% of their production while U.S exports are estimated at 24.49 MMT or 29% of U.S production. It appears both countries retain more of their production then they export. BTW, China imports 51% of total world bean imports."

You're just prooving my point, Agman. Brazil exports nearly half of their production already and they are still ramping up. They are claiming they want to feed the world, that shows they plan on continueing to increase production. Anybody down there has got to be concentrating on exports. Heck, they're telling us exactly that!

Agman, "Perhaps you have done your own studies regarding why corporations relocate their manufacturing facilities and where that production gets distributed. I am certain the Fed economists would like to be enlightened by the results of your extensive survey and analysis conducted from Valentine NE. The next time I meet with them, which will likely be in December, I will be certain to discuss your observations and conclusions with them. In fact, I will make a request that it have a high priority on their agenda. See, I am looking out for you Sandhusker."

Fine, Agman, you just do that. Here we have you and the fed saying "Businesses relocate to serve the local markets" and we have Carlos Brazilia saying, "We're going to feed the world"(EXPORTS) and Cargill expanding in that environment. I believe Carlos.

You like to tout your connections with the government like you've got the inside track on information, but I seem to remember you bring unaware that Japan was asking for tested beef. That's kind of a big one. I'd say your contacts "aint' much" or they're BSing you just like the rest of us. The difference between you and me is that I don't believe everything the government tells me.
 

agman

Well-known member
Sandhusker said:
Agman, "Tell me what you know actually about Cargill's bean business in Brazil. Much of the investment in Brazil is being made by many very large Brazilian producers. Some of the largest producers have over 500,000 acres under row crop cultivation"

I knew that, although that little tidbit has nothing to do with Cargill's marketing stratety.

Agman, "Current estimates have Brazilian bean production at 56.5 MMT versus 84 MMT in the U.S. Brazilian exports are estimated at 25.99 MMT or 45% of their production while U.S exports are estimated at 24.49 MMT or 29% of U.S production. It appears both countries retain more of their production then they export. BTW, China imports 51% of total world bean imports."

You're just prooving my point, Agman. Brazil exports nearly half of their production already and they are still ramping up. They are claiming they want to feed the world, that shows they plan on continueing to increase production. Anybody down there has got to be concentrating on exports. Heck, they're telling us exactly that!

Agman, "Perhaps you have done your own studies regarding why corporations relocate their manufacturing facilities and where that production gets distributed. I am certain the Fed economists would like to be enlightened by the results of your extensive survey and analysis conducted from Valentine NE. The next time I meet with them, which will likely be in December, I will be certain to discuss your observations and conclusions with them. In fact, I will make a request that it have a high priority on their agenda. See, I am looking out for you Sandhusker."

Fine, Agman, you just do that. Here we have you and the fed saying "Businesses relocate to serve the local markets" and we have Carlos Brazilia saying, "We're going to feed the world"(EXPORTS) and Cargill expanding in that environment. I believe Carlos.

You like to tout your connections with the government like you've got the inside track on information, but I seem to remember you bring unaware that Japan was asking for tested beef. That's kind of a big one. I'd say your contacts "aint' much" or they're BSing you just like the rest of us. The difference between you and me is that I don't believe everything the government tells me.

I expect you would believe Carlos since you also believe Econ and R-calf-all certified sources of the truth!! What else is new from you? Why don't you address the question I posed? Where is your analysis to refute the Fed's detailed analysis. Produce your own research or go pour sand over yourself again. I am not interested in your unsupported opinion.

When did Japan issue a formal statement that they would accept tested beef? What was the beginning date of that declarateion? I am and was aware of certain comments per that matter but where is there any offical declaration? Statements are made by many people that do not always represent offical implemented policy. What would current testing methods prove anyway?

No, I don't have the inside track on information but I can assure you when I look around the room of those present, who are there only by the Fed's invitation and is limited to no more than fifteen individuals, you are not there. I will stick with my contacts versus the demagogues you follow.
 

Econ101

Well-known member
Agman, what fed analysis are you talking about? I read this whole string and don't see it. Maybe you would like to be more specific. If you provide this info., it might help in making sure we are arguing over the same point.
 

Sandhusker

Well-known member
You want detailed analysis, Agman? What about an infusion of common sense? Do you always need somebody to tell you what is going on instead of looking and thinking for yourself?

Brazil already exports half their beans and have stated intentions to and are actively working to export more. Exporting is their focus and anybody involved with the Brazilian bean markets would naturally have the same focus. They're now working on the same thing with chicken and the players in that market would have the same focus as well. It's pretty flipping simple. If you can't figure that out without a detailed analysis or government report.......

You think Japan had to issue a formal proclamation that they would accept tested beef? Come on, they were asking for it in negotiations, contrary to what you tried to tell us earlier. Are you going to be like your little minion and tell us that them asking for it doesn't mean they'll accept it? Maybe bring up your "no protocol" arguement again? :lol: What the heck do you need?
 
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