Agriculture

Brazil’s moderate climate coupled with its fertile soil and its immense territory makes it an ideal place for the cultivation of many crops. Brazil is a leading world producer of coffee, soybeans, rice, corn, sugarcane, cocoa, and citrus fruits such as limes and oranges (Brazil supplies 80 percent of the world’s orange juice). It is also the planet’s largest exporter of both chicken and beef (Brazil currently has the largest herd of cattle in the world). Brazilian land is some of the cheapest on the planet.

In recent years, feeling crowded on their small plots, an increasing number of European farmers have invested in vast farms in the Central-West and North, where they are amazed at how fast crops grow. Indeed, over the last two decades “agri-business” has become increasingly high-tech. As a result, today Brazil boasts one of the world’s most productive agricultural sectors.

Industry and Finance

Brazilian industry, which is extremely diversified and well-developed, currently accounts for around one-third of the country’s GDP. Although traditionally, major industrial activities have been concentrated in the Southeast (particularly São Paulo and Minas) and the South, in the last few years, significant investments have been made in the Northeast and the North.

Among Brazil’s leading manufacturing industries are the automobile, aircraft, steel, mining, petrochemical, computer, and durable consumer goods sectors. Additionally, the country has a diverse and sophisticated service industry. Financial services are particularly well-developed. São Paulo is Latin America’s largest financial center, and its stock exchange, Bovespa, is the second-largest equity option exchange in the world.

Energy

Brazil used to import 70 percent of its energy from overseas. However, since 2006, the nation has been capable of meeting all its own energy needs. Brazil is the world’s leading supplier of hydroelectricity. To date, more than 90 percent of the country’s electricity needs are supplied by enormous hydroelectric dams such as Itaipu in Paraná and Tucuruí in Pará. Brazil has also flirted with nuclear energy with the building of Angra I, Angra II, and the soon-to-be inaugurated Angra III reactors, all of which are located in an otherwise idyllic spot of coastline in the state of Rio de Janeiro.

In late 2007, as rising oil prices sent the planet into panic, Brazil became the envy of the many countries when the national oil giant Petrobras discovered a vast deepwater reserve off the coast of Rio de Janeiro. The so-called Tupi reserve is estimated to hold up to 8 billion barrels of oil and could lead to Brazil becoming the newest member of OPEC. However, it’s not as if Brazil is beholden to the increasingly coveted fossil fuel.

Following the first oil crisis of 1974, the government’s visionary solution was to begin converting sugarcane into ethanol as a cheaper and nonpolluting fuel for all vehicles. Today, Brazil is the world’s number one producer of sugarcane alcohol; all Brazilian vehicles are flex fuel models that run on gas, alcohol, and a mixture of both.

Tourism

In the last decade, Brazilian tourism has developed enormously. Traditionally, aside from Argentineans who used to invade the southern coast before their currency took a nosedive, international visitors rarely ventured beyond Rio de Janeiro. Since 2000, there has been a major spike in tourists from North America and especially Europe. The increase is largely due to the proliferation of domestic charters and air routes as well as a more sophisticated tourism infrastructure, even in unspoiled destinations far off-the-beaten path.

In 2007, Brazil was the fourth-largest tourist destination in the Americas and the second largest in Latin America, after Mexico. However, much greater than the growth of international tourism has been the rise in the number of Brazilian themselves who are increasingly able to travel. Because of its endless natural attractions, Brazil’s major tourism niche is ecotourism, which has the advantage of providing sustainable development. Particularly in the North and Northeast, tourism is playing a pivotal role in the development of local economies.

At the moment, the still-growing sector accounts for 4 percent of GDP and, directly and indirectly, accounts for 7 percent of all jobs. Ranked in terms of number of tourists, Brazil’s most visited cities are Rio de Janeiro, Salvador, São Paulo, Florianópolis, and Foz do Iguaçu.

© Michael Sommers from Moon Brazil, 2nd Edition