This decision makes it even more apparent that Washington is unwilling or unable to implement policies that will constructively influence Latin America. The White House’s latest decision displays the hard truth that President Obama’s approach is to deal with left-leaning hemispheric regimes with a hard-line political agenda of ridicule rather than through constructive policy-making in the region.

His administration’s attitude seems to be that no hemispheric issue has the potential to be a compelling factor in the next US presidential election. However, votes could be picked up from rightist exile groups coming from Cuba, Nicaragua, and Venezuela among other disaffected conservatives, who hold passionate thoughts on their personal political agendas.

Iranian President Mahmoud Ahmadinejad arrived on Sunday night to Caracas in the first stop of a four-nation tour of Latin America. Besides Venezuela, the Iranian leader will also visit Nicaragua, Ecuador, and Cuba during a week-long tour of the region.

Ahmadinejad’s visit comes at a critical time for Iran as it faces the possibility of new sanctions by the European Union over its controversial nuclear program. Tehran is widely suspected of trying to build nuclear weapons, but insists that its uranium-enrichment program is entirely medical and scientific in nature.

Hence, the Iranian leader’s visit is a way for Iran to gather and maintain some international diplomatic support. It is no surprise that the four countries that Ahmadinejad will visit are the most vociferous in their anti-Washington rhetoric and initiatives, particularly Venezuelan President Hugo Chávez and the Castro government in Cuba.

Ecuador

Ecuador’s relatively under-developed and all-but-unprecedented diplomacy, along with Rafael Correa’s chronicled rambunctious attitude, have been at work to help stage this relatively noteworthy visit by the Iranian president.

By warmly receiving him, the Correa administration will again demonstrate its two-fold mission: first, to show the United States that Ecuador does not share its international political position, and second, that the eight-member ALBA alliance is alive and well.

Correa has not outwardly expressed any concern over Washington’s apprehension toward the largely left-leaning alliance, which was founded by Venezuelan President Hugo Chávez, with whom Correa shares many ideological beliefs.

Iran has something to gain by fostering good relations with countries even of secondary importance in the international context. Ecuador, on the other hand, has a lot to lose in this relationship, as it is consistently walking the tight rope between maintaining narrow commercial ties with the all-important U.S. market and staying as far away as possible from what Quito calls U.S. hegemony and imperialism.

It is well-known among some of the better-informed Ecuadorians that the current Iranian government has a history of notorious human rights abuses and multiple attempts to strain legality by remaining in power, a fact which has fueled the Ecuadorian opposition’s unfair equation of Correa and Ahmadinejad in this regard.

The Ecuadorian government is defending Ahmadinejad’s visit as an act of sovereign will on its part; of course, there is no need for an Ecuadorian head of government to ask for permission to hold such a meeting.

Reportedly, his visit to Ecuador will provide an opportunity for the governments of Iran and Ecuador to address issues of bilateral cooperation, politics, trade, and health, among others. Of some importance, this will be the first time that a good number of these areas of concern have been addressed in any meaningful discussion between the two countries.

Arturo Valenzuela, U.S. Secretary of State Hillary Clinton’s former right-hand man in dealing with Latin America, spoke to President Correa last week about concerns in Washington over Ecuador’s relationship with Iran. Correa’s response fell under the category of defending a pragmatic foreign policy. 

El Universo reported the President as saying, “Ecuador is willing to maintain amicable relations with all countries. If that means selling Iran more bananas, even better.” But any analysis of President Ahmadinejad’s Latin American tour must raise the important point that Brazil, another ally and growing international actor, has curiously been left off the itinerary.

Brazil

While Brazil was not one of the countries scheduled for a visit, important developments have been occurring in Washington’s relationship with Brasília, which eventually will affect the latter’s relationship with Tehran.

After decades of taxing foreign ethanol, the United States government decided to open its market by allowing the federal tariff to expire on December 31, 2011.

Previously, foreign ethanol producers had to forfeit USD 0.54 in taxes per gallon of ethanol exported to America. In addition, Congress passed the country’s federal spending bill without renewing the VEEC subsidy that would have been granted to national ethanol producers.

Brazil would be quite interested in this change, as it is the biggest sugarcane ethanol producer in the world. The measure represents a big win for Brazil’s ethanol industry, which seeks to maximize its production and exportation to the United States.

Marcos Jank, President of UNICA (Union of the Sugarcane Industry), Brazil’s biggest representative of the sugar and bioethanol market, expects an increase of 12 billion liters of ethanol exported to the U.S. until 2020. The new arrangement will strengthen Washington’s leverage over the country, and weaken the tidal tug of Iran’s pull on its Brazilian ally.

President Ahmadinejad will be visiting the host governments of Nicaragua, Venezuela, Ecuador and Cuba. The fact that he hadn’t canceled the trip as a result of the heated statements being currently made by both the US and Iran indicates the sobering thought that the situation is less fraught with danger than it first seems, and that neither side will permit the current fractious situation to get out of hand.

The fact that he is undertaking the trip despite the fact that Cuba, Ecuador and Nicaragua will not provide a notable venue for transformative talks, no truly important geo-political decisions are likely to be made, and no block-buster developments are anticipated as a result of the trip, reflects its symbolic nature.

Although both Fidel Castro and Chavez at times have resorted to heated and intemperate language in reference to the US president, the Venezuelan leader by no stretch of the imagination is a Pinochet-class dictator.  While he may have sorely tested the spirit of the Venezuelan Constitution, he has not, up to now, represented any threat to its letter.

The sad fact is that President Obama obviously hasn’t given any serious thought to the issues effecting US-Latin America policy, nor has he appeared to have any compelling notion of its importance. 

Latin America has been experiencing a profound historical transformation. The US response has been uninspired and devoid of any creativeness or a willingness to seek opportunities to come forth with a truly relevant regional policy since the Obama administration commenced.

Washington’s mano dura tactics towards Cuba and Venezuela represent a grave disappointment with the timeliness and relevance of Obama administration policy.  Clearly the administration is being driven by opportunism, self-interest and pandering to the basest of political motives, if not by high-minded ideals.

Rather than take advantage of the unique historical opportunities provided by Raúl Castro’s extraordinary reforms by putting them to the test, President Obama and Secretary of State Clinton have been content to depend upon diplomatic clichés and ideological bromides.

Today the White House is far more prepared to make major concessions to Iran and North Korea in order to avoid the diplomatic conundrums with those countries, than deal with a much more democratic Venezuela.

US-Latin American policy has to be rescued from the dead-end zone in which it is now found. Clearly, the Obama administration’s stance has mostly to do with the issue of new beginnings and the sterile politics of hope and change that the President defined in the days that he was running for office, but never came to pass.

There is no reason to believe that he will be able to kindle excitement and enthusiasm for a strategy that never had any prospects concerning US-Latin American policy. The truth is that Obama’s regime policy is all but indistinguishable from that of the last Bush administration.

*This analysis was prepared by the following members of the Council on Hemispheric Affairs staff: Research Associate Christina Gordon, Senior Research Fellow Olga Imbaquingo, Research Associate Lauren Paverman, and Research Fellow Alex Sanchez.

The highlight of the first half was imports from India. In previous crops, India was a net exporter of the product (with exports surpassing imports). As a result of a strong reduction in output during the last production cycle, the country has begun importing Brazilian sugar.

In the first half this year, India, with imports of 1.57 million tons, was the second largest destination of Brazilian sugar exports, and accounted for 15.19% of foreign sales of the commodity. During the period, Russia was the leading importer of the Brazilian product, having purchased 1.66 million tons from Brazil.

With revenues of US$ 3.19 billion in the first half this year, foreign sales of sugar from Brazil, which totaled 10.4 million tons, posted growth of 53% over the same period of last year.

The figure is a record and came in a period during which foreign sales of the main Brazilian commodities decreased by 13%.

The value of sugar exports from Brazil in the first half represents growth of 26.4% over the same period last year.

To the Unica, the export value represents a significant contribution to the Brazilian trade surplus in the first half of 2009, which totaled US$ 14 billion according to figures supplied by the Foreign Trade Secretariat (Secex) of the Brazilian Ministry of Development, Industry and Foreign Trade.

"The global sugar deficit and uncertainty surrounding the output of some countries have led the prices of the product around the world to rocket, enabling a substantial increase in Brazilian exports," stated the technical director of Unica.

In the first half this year, the United Arab Emirates accounted for 5% of Brazilian exports of sugar, and was the fourth leading foreign destination of the commodity.

The United Arab Emirates, for instance, imported 500,000 tons of sugar from Brazil. The survey by Unica showed that besides the United Arab Emirates, four other Arab countries are in the list of top ten Brazilian sugar importers.

The four other countries are: Saudi Arabia, Morocco, Algeria and Yemen, with combined imports of 1.62 million tons. Coupled with sales to the Emirates, these four Arab countries imported 20.6% of all the sugar that Brazil sold to the world in the first half this year.

"The Middle Eastern countries, Russia, and African countries are large importers of the Brazilian product," informs the technical director of Unica, Antonio de Pádua Rodrigues.

According to Rodrigues, the average price obtained by Brazilian farmers from sales of sugar in the first half this year was 51% higher than revenues from domestic sales of hydrated ethanol. "This has encouraged industries to produce greater volumes of sugar," he said.

The increase in foreign sales of sugar has partly made up for falling ethanol exports. In the first half of 2008, the country exported 1.97 billion liters of ethanol. In the first half of 2009, exports decreased further by 25%, having totaled only 1.45 billion liters.

According to the Unica, the lower export volume of ethanol is equivalent to the reduction in imports by the United States, which totaled 500 million liters from January to July 2008, as against 72 million in 2009.

The European Union and the Caribbean Basin Initiative (CBI) member countries were the leading importers of Brazilian ethanol in the first half of 2009. Together, they accounted for more than 55% of Brazilian exports, with 412 million and 400 million liters, respectively.

Anba

Am I a teetotaler? No! I believe people should be able to drink, but unfortunately, not everybody. Some people can’t hold their liquor and start making all sorts of trouble. Alcohol has been destroying families for a very long time in Brazil and it’ll keep on doing so for a very long time to come.

Virtually every family has a pé-de-cana, drunkard. So of course, mine has one. Actually, we had three, but two of them are pushing up daisies now. I may sound callous by using that expression, but tipplers have that effect on me. We feel pity and anger all the time we are around them.

Brazilians need a lot of detox clinics. Lots of spouse beatings and child abuse are triggered by alcohol intake, more so in the poverty-ridden layers of society, but it affects all walks of life. And neighbors are victims, too, not only of beatings; they also have to put up with a lot of screaming, scandals, and noise, because most boozers are loudmouths and troublemakers.

If you do some research on emergency rooms, you’ll find how many acts of violence perpetrated by victims or aggressors are somehow alcohol related. In the city of São Paulo, 42.5% of homicide victims submitted to a toxicology test had consumed alcohol, and in the city of Curitiba, Southern Brazil, 50.2% of victims of interpersonal aggression by firearm or bladed weapon, cared for in an emergency room, were under the influence of alcohol.

Yes, lushes also become victims because one day somebody’s supply of patience runs out. And let’s not forget the number of people injured or killed by drunk drivers. The fact in Brazil they go to jail doesn’t seem to keep plenty of people from drinking and driving. There is a great number of campaigns saying “If you drink, don’t drive”, but that doesn’t seem to deter many Brazilians.

If you can buy easily, you drink more. Booze is certainly not for everyone. If you realize you’ll become a problem for others, stop drinking now (if you can’t on your own, seek help), if you just want to escape reality, drink alone and don’t bug anyone. If you are able to hold your liquor, then, you can take part in human interaction.

Drunkards are similar to manic-depressive types, or people with bipolar disorder. I noticed that a long time ago. When they are drunk the id takes over and they do all sorts of evil stuff. Then, when they sober up many of them regret the harm they have caused and become nice to compensate for all the nastiness. So a lot of people say, “He is so nice when he is not drunk”, which becomes the motto of people who have to live with boozehounds.

Should we enact the Prohibition law in Brazil? No way! It didn’t work in the USA and it certainly wouldn’t work here. That would just increase crime because people need to get inebriated in order to escape the harsh reality of their empty lives or to relax enough to muster the courage to do something, etc.

Just a curious observation, how can you tell a Brazilian is drunk?

Some of them become too mushy and hug you a lot, others want to show everybody they are macho and pick fights. In Brazil the personal bubble is much closer in general, but for drunkards it seems they can’t talk without touching and hugging. They either become too friendly, taking a lot of liberties with your person, or too belligerent, or both. When you don’t show your friendship in their mushy mode, they become angry and get into the spoiling-for-a-fight mode. Some just stay in one mode.

A few drunken women get too dada (DAHda), another Brazilian word for friendly, with a double meaning in this case because in Brazil dar, to give, is the verb used to mean “to have sex with”. “Ela me deu” means “She had sex with me.” “Dar” is used only about the person on the receiving end of intercourse.

I guess many people wouldn’t mind if the woman got too “dada“, unless you’re a straight female or a gay man. In Brazil, we have a saying, excuse my French, “Cu de bêbado não tem dono“, which means “A lush’s ass doesn’t belong to them.” I guess you can imagine how this saying came about.

Should we decriminalize other drugs since alcohol is legal? No way! One legal mood changer or enhancer is one too many. Even though the fact people can’t take those other drugs cause crime for the same reason Prohibition generated gangster in the USA, the fact is, it is better to fight crime and hospitalize junkies than to have more junkies around due to the fact it would be easier to get drugs since they’d be available all over like alcohol is in Brazil.

And those people who want to legalize drugs are so naïve, thank goodness this fad hasn’t gotten to Brazil yet, at least not in force. They think everybody is responsible, they think people can control themselves. The truth is we need government or a big daddy because a great number of people are irresponsible and weak, which is one of the reasons I’m not an anarchist or an advocate of laissez-faire capitalism.

Authority makes it easier for cowards to lead a good life, since if they were given freedom they’d trash their lives, and the lives of those around them as well. Fear keeps them from doing a lot of bad stuff. Some people can’t deal with freedom of choice, they mess it all up. Adam and Eve come to mind.

The price of freedom is responsibility. Brazil is too paternalistic, so I guess we could ease up on some issues, but I’m all for fighting drug-trafficking and helping junkies. We ought to have legalized drug zones in every city and prohibit consumption in other parts of it, except at home, because how could any government keep people from taking drugs in their abode, anyway?

If we sectioned off parts of the city where people would be allowed to take drugs and deployed the police around those areas, it would be much easier to fight crime. And the detox clinics should be in those areas as well to make it faster to rescue overdose victims, etc.

I guess that would be a middle-of-the-road solution. But I doubt very much that will ever happen in Brazil. The odds of that happening are the same as the pope becoming a member of the Igreja Universal, a Brazilian evangelical church, but that’s just my two cents.

To prove my point, just stop and watch the street scenes of drunken disorderliness that pop up every now and then in many neighborhoods as compared to most of São Paulo’s entertainment areas, such as Paulista Avenue, São João Avenue, Pinheiros, Moema, famous for their bars, nightclubs, theatres and restaurants.

And the malls spread out all over the city with every kind of entertainment and, as São Paulo City is inland, people use the Guarapiranga dam as Cariocas, Rio de Janeiro natives, use the beach.

But of course, if you’re willing to drive or commute out of São Paulo, there are plenty of beautiful beaches in São Paulo State, which are very close to São Paulo City. You could go to them whenever it hit your fancy. Some of Rio de Janeiro’s beaches can’t hold a candle to São Paulo’s.

Anyway, there are fewer incidents in those places than in other areas because the police make sure they are under surveillance 24/7.

I rest my case.

The only places that make me a little uneasy when roaming the streets of São Paulo are around the periferia, the fringes of the city. But if you don’t overdress or dress too weirdly, people won’t usually bother you. When putting on your clothes, just make sure you don’t stand out too much.

I travel all over São Paulo and I can tell you it has people from every ethnic or racial background. What makes you stand out like a sore thumb is the way you dress more than your looks. So, just survey your surroundings.

Anyway, the only way to control drugs is by controlling the supply, not the demand. Criminalizing drug or alcohol users will take us nowhere. We have to treat them as patients and detoxify them somehow, or as many as we can. But if drugs are so easily available, it is much easier for people to get addicted. The overabundance of bars in São Paulo and the problems they cause is evidence enough.

And I don’t believe everybody is equal, this is a pipe dream invented by democracy, which I defend, even though I don’t like everything in it. Some people are able to hold their liquor, some aren’t.

If you can’t hold your liquor, don’t hold me accountable for my actions if you give me hell on earth because of the drunken monkey on your back. I understand your situation but I’ll give you hell right back because I’m no saint.

And I can always say I have a mood-control disorder when faced with a blotter. That can be a disease, too, can’t it?

Bibliography of the stats: http://www.scielo.br/scielo.php?pid=S0034-89102008000500005&script=sci_arttext&tlng=en

Author: My name is José Moreira da Silva, but I prefer Joe because José is such a common name that if you shout it in the middle of the street, anywhere in Brazil, about 70% of the people would turn their heads. I live in São Paulo. I’m Brazilian and work as a teacher and translator, as well as a freelance subtitler and editor for Rede Globo, Globosat and several other TV channels, such as Fox, etc. Check out my blog on http://joedasilva.wordpress.com.

"It is a regular market, without great problems, but that counts on permanent following of the government, which is trying to become certain of the offer and demand," said Rossi.

To the Conab president, the price of alcohol was very favorable in 2008 and should be close to that next year, there being no danger of large hikes, as the price of the barrel of oil is low on the foreign market.

With regard to investment in the sugar and alcohol area, Rossi does not discard the possibility of problems due to the crisis in the global credit area, as it affects all sectors. But he believes that light adjustment may be made in the sector, without great trauma for national production.

In 2008, in some areas of the country, the ration between the price of ethanol and gasoline was between 55% and 65%, which was very favorable. "It is advantageous to alcohol up to around 70% of the price of gasoline. This price relation is always important in defining the level of demand," said Rossi.

The president of the Conab stated that the government is aware of the low remuneration obtained by small producers and has already taken rapid measures to support this contribution, which is essential to the alcohol market.

He preferred not to make estimates about production next year, adding that five harvests are made each year in some regions and in the southeast there are up to six. For this reason, it is hard to forecast, although each year growth of 10% is expected in production of sugarcane.

The director of the Sugarcane department at the Ministry of Agriculture, Livestock, and Supply, Alexandre Stratasson, informed that next year, 30 new complexes for alcohol manufacturing are going to be installed. The average cost of each complex is around 300 million reais (US$ 126.6 million), according to him.

"The injection of 9 billion reais (US$ 3.7 billion) into the sector is very positive," said Stratasson. Each of these plants has capacity for processing two tons of cane, ensuring an annual output of an additional 560 million tons.

He forecasts that in 2009, the price of alcohol should remain in line with the current situation, although there should be a slight increase in the price of sugar in the international market.

Alcohol production tends to grow more than that of sugar, especially due to the forecast of increase in manufacture of vehicles that use both alcohol fuel and gasoline. Currently, 7 million alcohol-fueled autos are circulating in the country, and the fleet should increase in 2009.

ABr

Stringent legislation of emission standards, and governmental intervention by way of subsidies, and tax incentives are expected to foster market growth in the medium to long run. Both developed and developing markets are expected to lend traction to the market's growth in the future. China and India, within Asia-Pacific, represent lucrative markets to mine.

The world ethanol market stands enthused by rising consumption patterns in end-use markets. Fuel-ethanol is witnessing unprecedented interest encouraged largely by the ban on MTBE in several countries and its resulting replacement by ethanol. Regulatory riders imposed by most governments in the developed markets are additionally helping perk up demand for ethanol in fuels.

In the United States, the renewable fuels standard mandates the use of approximately 8 billion gallons of ethanol by the year 2012. The need to skirt stinging hikes in crude oil prices, reduce green house gas emissions, and lower international dependence on oil, is encouraging governmental intervention in fostering consumption of ethanol.

For instance, consumption of ethanol will be upheld by government subsides, and incentives which are being offered at both the state and federal levels in most countries. The rising popularity of flexible fuel vehicles (FFVs) and oxydiesel, a blend of ethanol and diesel fuel, are also expected to bode well for the world ethanol market. Technology developments, which enable blending more than 10% ethanol in gasoline, is expected to result in increased consumption of ethanol in fuels.

Development of new technologies and emergence of new end-use applications are expected to bring in new growth opportunities. United States and Brazil dominate world production of ethanol. Ethanol production is aligned with the yields of sugarcane crops, given the fact that over 50% of the world sugarcane produce is used in manufacturing ethanol.

As stated by the recent report published by Global Industry Analysts Inc., South America and the United States dominate the world ethanol market, together cornering over 66.5% of total volume sales estimated in the year 2008.

About 90% of ethanol demanded in South America is consumed by Brazil. Ethanol consumption in Brazil is expected to reach 7.45 billion gallons by 2015. Sales of ethanol in Canada, one of the fastest growing markets worldwide, are expected to rise by approximately 208.25 million gallons between the period 2008 to 2012.

Global growth is forecast to be led by the use of ethanol in fuels. In the fuels end-use market, volume consumption of ethanol is projected to grow at double-digit rates, and rise by about 7,597 million gallons between the period 2008 to 2012. Asia-Pacific dominates the global food & beverage end-use market with a 64.2% share estimated in the year 2008.

The solvent end-use market in the United States is projected to consume over 230 million gallons of ethanol by the year 2015. In Europe, Germany and France collectively account for 35.5% of the regional ethanol market as estimated in 2008.

Leading global and regional players operating in the industry include Abengoa Bioenergy Corporation, Açúcar Guarani S/A, AltraBiofuels, Ancom Berhad, Archer Daniels Midland Co, Aventine Renewable Energy Inc, Cargill Inc, Chief Ethanol Fuels Inc, Copersucar, Cosan S/A Indústria e Comércio, Delta-T, Glacial Lakes Energy LLC, Greenfield Ethanol Inc, Green Star Products Inc, ICrystal Inc, MGP Ingredients Inc, Orkla As, POET Ethanol Products, Santelisa Vale, Sasol Ltd, Southridge Ethanol Inc, Tiger Renewable Energy Ltd, Usina São Martinho S/A, VeraSun Energy Corp, and White Energy Inc, among others.

The report titled "Ethanol: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, issues, and challenges. Annotated with authoritative commentaries, and hard-to-find statistical facts, the report provides unequivocal views on future potential while throwing light on the prevailing climate in key regional markets.

Key end-use markets analyzed in the report include Solvent, Chemical Intermediate, Fuel, and Food & Beverage. Latent demand patterns in end-use markets are quantified across major geographic market verticals including the United States, Canada, Japan, France, Germany, United Kingdom, Italy, China, India, Brazil, Middle East & Africa, among others. Also provided in the report is an enumeration of recent mergers, acquisitions, and other strategic industry activities.

Global Industry Analysts, Inc., (GIA) is a publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs more than 700 people worldwide and publishes more than 880 full-scale research reports each year.

Additionally, the company also offers a range of more than 60,000 smaller research products including company reports, market trend reports and industry reports encompassing all major industries worldwide.

Service

Global Industry Analysts, Inc.

http://www.strategyr.com/

In the first half of 2008, Brazil consumed 2.4 billion gallons of gasoline and 2.38 billion gallons of ethanol. But the race is quickly tilting in ethanol's favor, as ethanol consumption has been trumping gasoline for the last five months, says Brazil's National Petroleum Agency (ANP).

Most of that is due to the fact that ethanol's cheaper: gasoline goes for around US$ 1.31 a liter, compared with about 57 US cents for a liter of ethanol, of which Brazil is one of the world's leaders in production and technology.

By 2011, around 13.5 million gasoline-only cars should be parading down Brazilian roads, with 11.7 million flex-fuel cars following on their bumpers.

"Given the growth of new cars on the road by around 4.5% annually, and the fact that 92% of all new car sales are flex-fuel, ethanol-powered cars will dominate the future car fleet," the report said. The 92% figure is based on sales data from the Brazilian Motor Vehicles Manufacturers Association.

Gasoline-powered cars will still have the edge on ethanol vehicles, with 50.9% of the market in 2011, because older cars will still be on the road. After that, ethanol-powered vehicles will dominate, the report says.

Brazil's ethanol demand roughly equates production, 6.5 billion gallons. However the country is trying by all means to ensure a foothold on the US market.

The Sugarcane Industry Association, Unica, has tried relentlessly to convince Washington to dump its $0.54 per gallon tariff on Brazilian ethanol.

Unica argues Brazil could produce even more, to meet local demand and the export market, if only the tariff were abolished. That would spur more new investment, Unica argues.

But Brazil's ethanol market doesn't depend on the whims of Washington – in Brazil, ethanol hype is for real. Even with the tariff, the country still exports record-breaking volumes in the midst of record-breaking domestic consumption.

As much as Brazil would like to sell more to the US, it has the local market as a reliable fallback.

Mercopress

The three mills are being built by the National Sugar and Alcohol Company (CNAA), a joint venture established by Brazilian sugar producer Santelisa Vale, North American private investment funds and Global Foods, a holding registered in the Dutch Antilles.

The IDB is going to make an "A" loan, out of its own capital, totaling US$ 269 million and should obtain another US$ 379 million from commercial banks in a "B" loan, in a consortium led by BNP Paribas.

Located in Minas Gerais and Goiás, once they start operating the mills should produce 420 million liters of ethanol for the domestic market and generate their own electricity through the burning of bagasse (industrial residue).

In truth, according to the IDB, the co-generation technology to be used is so efficient that the mills should produce enough excess electricity to supply 400,000 Brazilian medium sized homes.

Fisheries

Agência USP informs that a research developed in the laboratories of the Public Health College shows new possibilities for inclusion of fish products in the Brazilian diet. From dehydrated fish, scientists produced soup and fish biscuits that were tested and approved in an acceptance study that also evaluated nutritional values of the products.

The fish soup was well accepted by 79% of a group of 100 children aged 4 to 7, in nurseries in Santos region, in the littoral of São Paulo state. The biscuits were tested by 40 adults in the laboratories of the Fish Institute in Santos, and were also well accepted.

Bulletin

The Central Bank of Brazil (BC) should present this Thursday, August 7, in the city of Recife, capital of the northeastern state of Pernambuco, the Regional Bulletin, to be published every three months. The objective is to create a profile of each of the regions of Brazil through figures and indicators.

During the event for release of the Bulletin, the Economic Policy director at the BC, Mário Mesquita, should present figures for several regions, but with special focus on the Northeast. The Regional Bulletin may be accessed on the BC Internet site (www.bcb.gov.br).

The National Food Supply Company (Conab) is also going to disclose, August 7, the results of the second to last research on the current grain crop. The 11th study of the 2007/08 cycle is going to register further growth in production. The announcement should be made at 9:30 am, at the Ministry of Agriculture.

The work analyzed summer and winter crops. The highlights of this edition are second-crop corn, the cultures of the Northeast (cotton, rice, beans and sorghum) and third-crop beans, which should start being harvested this month.

The field study was developed by 61 technicians at the state-owned organization, from July 14th to 18th. Last month Conab estimated grain production at 142.4 million tonnes.

Anba

According to information supplied by the Brazilian foreign office (Itamaraty), the semi-arid climate of Morocco is not ideal for sugarcane farming, therefore the local government wants to evaluate the possibility of using another plant to produce ethanol.

The Moroccans are seeking experience accumulated over the course of several decades by Brazil, and the minister was invited to come to the country to have a close look at the functioning of the sector.

Also in the field of energy, Amorim and Amina talked about the cooperation of Petrobras for oil exploration in the Moroccan coast, and the production of oil using bituminous schist in the Arab country. Exchange in the field of schist is already underway.

With the minister of Economy and Finance, Salaheddine Mezouar, the Brazilian chancellor discussed the trade agreement that the Mercosur started negotiating with the Arab country in the second half of 2004.

According to information supplied by the Itamaraty, the two ministers expect for the deal to progress in the upcoming rounds of negotiation. The idea is to have a fixed tariff preference agreement first, and then to establish a free trade agreement.

Mezouar, according to the Itamaraty, also showed much interest in the Bolsa Famí­lia (Family Voucher), an income transfer program of the Brazilian federal government.

Amorim also met with the Moroccan prime minister, Abbas El Fassi. They discussed international and regional political issues, especially the matter of the Western Sahara, a territory controlled by Morocco over which there is a dispute with Algeria.

They also spoke of the good economical situation of the two countries, and of the ethanol issue.

Morocco is the second stop on a tour of the Brazilian foreign minister to North Africa, which started in Algerian and will end in Tunisia. Today, he will sign eight agreements with the minister of Foreign Trade and Cooperation, Taieb Fassi Fihri, in areas such as health, environment, agricultural cooperation and animal inspection. Amorim will also participate in the meeting of the Brazil-Morocco Bilateral Mixed Commission.

US Support

The Moroccan government manifested its support to Brazil's intention of having a permanent seat at the Security Council of the United Nations. The statement was made by the Moroccan minister of Foreign Affairs and Cooperation, Taieb Fassi Fihri, during a meeting with the Brazilian foreign minister, Celso Amorim, in Rabat.

"Morocco regards as legitimate the Brazilian aspiration to be a permanent member of the UN Security Council. This will translate into strong support by Morocco to the Brazilian candidacy when the reform takes place," said Fassi Fihri, according to information supplied by the Itamaraty.

Brazil is one of the strongest advocates of the reform at the Council, which follows the same model since its inception, after World War II, with five permanent members that have power of veto (United States, Russia, France, China and Great Britain) and 10 rotating seats, with two-year-long terms and no veto power.

Advocating the reform is an important part of the foreign policy of president Luiz Inácio Lula da Silva's administration. The Brazilian diplomacy claims that the disposition of the Security Council does not reflect the current geopolitical reality.

"The more the Southern countries speak to each other, the more the Northern countries listen to us," Amorim said to Fassi Fihri, according to the Itamaraty. The two ministers underscored the importance of enhancing the so-called South-South cooperation, among developing countries.

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According to him, the increase is explained mostly by sales of flex-fuel vehicles, which represent 90% of all new automobiles manufactured in Brazil.

The sugar and alcohol sector is restructuring itself so as to cater to the expansion of global ethanol and biodiesel markets. "For the time being, the factor that determines the growth of supply is still the domestic market," said Bertone.

According to him, domestic demand for alcohol should rise even further in 2008 and sugar prices should recover in the international market, which should favor the segment.

He states that 2008 should also see entry into operation of 20 new plants that will predominantly produce alcohol. Production of hydrated alcohol hit a record high this year, surpassing 12 billion liters and absorbing the 50 million additional tons of cane in the current crop, estimated in 480 million tons.

The year of 2008 should also see the conclusion of the Agro-Ecological Zoning of Sugarcane (ZaeCana), which will provide the foundation for public policies and the organization of sugarcane expansion in the country.

"Brazil will show that its policy revolves around sustainability and reaffirm its leadership in global ethanol production," says the secretary.

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Researchers estimate more than 200 lives have been saved in the two years since bars went from staying open 24 hours a day to closing at 11 p.m.

The city averaged 22 homicides per month when bars were open 24 hours, but that rate declined to about 12 per month after bars began to close earlier.  The study findings are reported in the November issue of the American Journal of Public Health by researchers at the PIRE Prevention Research Center in Berkeley, California and at the University of São Paulo, Brazil and the University of Nottingham, England.

The researchers worked with government officials from Diadema to document the effects of the change. They examined the outcomes of limiting drinking hours in the city Diadema, which is about 12 miles from downtown São Paulo, the largest city in Brazil.

An industrial city with a population of 357,000, many of whom are low socio-economic status, Diadema had one of the highest homicide rates in Brazil, with 65% of such crimes considered alcohol related. 

Police statistics showed that most murders and other violent crime occurred between 11 p.m. and 6 a.m. near bars and retail alcohol outlets. In July 2002, a law was passed requiring that all alcohol establishments stop serving alcohol and close at 11 p.m. instead of staying open for 24 hours.

"Research has shown over and over that alcohol and violence are linked," said Dr. Joel Grube, Ph.D.., a study author and research scientist at PIRE. "The results of Diadema's efforts provide important evidence that this relationship need not be accepted passively.  Local communities have it within their power to prevent alcohol-related violence."

Researchers collected monthly police reports of homicides from local authorities to monitor the crime rate in Diadema. Leaders in Diadema worked both before and after the policy change to ensure that it had broad public support and was well-enforced. 

A public opinion poll before the policy change showed a community approval rate of 83%. Following the adoption of the municipal law, it was publicized throughout the community. Recent surveys indicate that 98% of Diadema residents know about the law, and 93% support the new alcohol policy. The mayor of Diadema was re-elected in 2004, with opinion polls suggesting increased popularity as a result of the new law.

"A wealth of research shows that policies that change how alcohol is sold can be highly effective in preventing alcohol-related problems.  This is another example of how those policies can work," Dr. Grube said.

Six months prior to the scheduled adoption of the new alcohol policy the municipal civil guard visited most alcohol retailers and discussed with the owners the proposed law and its application to alcohol sales.  Later, the owners were asked to sign a declaration that they were aware of the law and the legal consequences of violations.

Enforcement operations are carried out each evening.  An important component of the enforcement strategy includes regular meetings and reports to officers of the municipal civil guard on the effectiveness of enforcement in reducing community violence and informing officers directly of the survey data documenting citizen support for their enforcement efforts.

The analyses show that closing the bars at 11 p.m. produced a large and statistically significant reduction in homicides – almost nine murders a month in a city of 360,000 residents – an annual reduction of 106. This is a considerable public health achievement, especially in a country with such a high level of violent deaths. The data also suggest a possible reduction in assaults against women, although the effects were not statistically significant.

Between 1980 and 2004 the murder rate in Brazil more than doubled, from more than 11 to 27 per 100,000 per year. For comparison, the World Health Organization estimates that in 2000, the homicide rates per 100,000 people were one for the United Kingdom and six for the United States.