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Foreign Investment in Sugar Triples

25 May 2010

BRAZIL - Overseas investors are taking a bigger stake in Brazilian sugar production, tripling their involvement in just three years, according to an industry website.

Agrimoney.com has reported that the proportion of Brazil's cane ethanol mills boosted by foreign capital has risen from by 15 percentage points to 22 per cent since the 2007/8 season.

Jacqualyn Fouse, financial officer for Bunge, the US oilseeds business which has spent in excess of $1 billion (£700 million) buying sugar mills in Brazil this year, told the website that her firm was raising a further $100 million to invest in production.

She said: "Domestic demand in Brazil for ethanol has been growing at a very rapid pace. We think, [in the] long term, the future for sugar-based ethanol is very good."

Elsewhere in South America, soybean farmers in Argentina are currently holding back a record yield as the local currency is expected to fall, offering a potential gain in returns for US orders.

Bloomberg reported last week that growers are resisting sale of the beans after Goldman Sachs predicted an impending drop of 0.25 per cent in the peso's value against the US dollar.

TheCropSite News Desk



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