Omar Nasser, from Fiep*
Curitiba – The granting of credit by the Regional Development Bank for the Extreme South (BRDE) to the southern Brazilian state of Paraná grew by 150% in the first half of the current year, in comparison with the same period of last year. The amount reached 217 million reais (US$ 110.7 million), 95% of which were deployed to the agroindustry. A statement issued by the financial institution also discloses that the Curitiba branch recorded, between January and June this year, the hiring of 2,122 operations.
To have an idea of what those figures represent, it suffices to say that, in the states of Paraná, Santa Catarina, and Rio Grande do Sul combined, the BRDE awarded 5,631 financing contracts in the first six months of 2007, totalling 557 million reais (US$ 284.3 million). That is, the state of Paraná alone answered to 38% of the operations volume, and for 39% of the funds issued by the institution during the period.
The expansion – regarded by the bank as the largest among the three southern Brazilian states – was mostly due to investment in processing of agricultural and cattle-raising production, coordinated by cooperatives. One example is the poultry sector. In addition to increasing slaughter, the segment is betting on differentiated cuts and in the production of higher value-added items, such as hamburgers. Target markets include the Middle East and Japan.
Another sector that recorded an increase in demand for credit from the BRDE is the sugar and alcohol industry, whose production is concentrated in the northern and northeastern regions of Paraná. Cane farmers are investing in the construction of new alcohol plants, encouraged by the perspective of increase in global demand for the fuel in the medium and long term. "Many projects are now being carried out, and this segment should rank among the most promising in coming years," according to the evaluation of the Credit Recovery and Follow-Up director at the BRDE, Carlos Marés.
The executive points to the significant amount of companies that seek business opportunities in this sector in the state of Paraná. One of the target markets is Japan, which is looking at mixing 3% of alcohol into the gasoline used in the country. The country consumes 60 billion litres per year, and that measure would create a market of 1.8 billion litres per year. The Asian country is one of the main buyers of alcohol from Paraná.
*Federation of Industries of the State of Paraná (Fiep). Translated by Gabriel Pomerancblum
