Brazil's Sugar
Earlier this year, there was a clipping in our work of Hershey's booming chocolate sales. This was good news for Hershey, but also for sugar and cocoa. We particularly like cocoa because it takes many years to grow a cocoa plant. Thus an increase in demand is not met by an increased supply.
One of our readers, Angella Arguelles, recently sent me an article about the latest entrepreneurial fantasy: cupcakes. Stand-alone cupcake shops have been spreading. According to Adam Borden, of a Baltimore based capital firm, "cupcake stores are taking the place of ice cream stores."
Since the start of the year, the price of sugar futures has almost doubled. Chocolate bars and cupcakes were not alone in the spectacular price rise of sugar. India's sugar production fell by almost half, turning the country from the second biggest producer to the largest importer of sugar.
Not only is sugar in demand, but so it ethanol, which uses Brazilian sugar. Ethanol has been growing at 17% a year. All of this has been a bonanza for for Brazil's sugar companies and this double barreled demand for sugar has helped Brazil.
-Jim
(Photo above: Consolidating the crop: Brazilian Sugar from The Economist December 5, 2009)
posted by Jim Williams @ 11:43 AM
1 Comments
1 Comments:
By constitutional determination regarding the educational system, the aforementioned legislation still applies as long as it does not go against the Constitution. This ambiguity is a consequence of the absence of a new Bases and Guidelines Law and characterizes a transition phase until the new law is finally elaborated and enacted. The bill has already been submitted to congress. jimmy
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