BRAZIL.
LAND GOING CHEAP.
The drops in the prices of ethanol and sugar in the last two months, have seen a decline in land prices for the first time in 12 years.
Many sugar mills and crushing plants are facing financial hardships, in the wake to the global economic crisis and the drop in commodity prices.
There have been four major mills go into bankruptcy and there has be a 45% reduction in the price of land, according to Carlos Aguiar Neto of Brasil-Agro. Who went on to say "We are seeing a drop of 45-50% in the price of crop land in some sugar cane areas, where the owners are facing financial difficulties".
He also said where some feel pain others see opportunity, referring to the billions being invested currently by the large American players, Louis Dreyfus announced on Friday a US$1 billion investment planned for the Brazilian sugar industry.
Brazil boasts over 400 sugar cane ethanol mills in the country, with around 8.5 million hectares of land devoted to the production of sugar cane. Other farm land devoted to wheat, soy and beef however are remaining very stable in price.
The Brazilian government has injected US$164 billion into the economy in the last two months, mostly to banks and corporations in order to lift the economy during this delicate financial period.
