By Paulo Trevisani and Jeffrey T. Lewis
BRASILIA--Brazil's leading presidential candidates presented
their proposals Wednesday to the agribusiness sector, a major
source of Brazilian exports, as the campaign heats up ahead of the
October vote.
Pledges to improve financing, infrastructure and predictability
were among the most recurrent promises during a debate promoted by
the National Confederation of Agriculture and Livestock, known as
CNA.
Incumbent President Dilma Rousseff, who is seeking a second term
and is leading in the polls, defended her record on those topics
and partially blamed the 2008 global financial crisis for any lack
of assistance to farmers, while her two closest opponents, Aécio
Neves and Eduardo Campos, promised to focus on policies based on
"debate" and "meritocracy."
A leading global producer of sugar, soy, coffee, orange juice
and meat, Brazil is struggling to increase productivity and
competitiveness in other areas. The country used to be the world's
top producer of ethanol, but was surpassed by the U.S. in the past
few years.
Local growers of sugar cane, the raw material used in Brazil to
make ethanol, complain that Ms. Rousseff's policy of keeping
gasoline prices under tight control is undermining the ethanol
industry.
Ethanol is only two-thirds as efficient as gasoline at fueling a
car, so to be competitive, the price for ethanol at the pump can't
be more than two-thirds the price of gasoline.
With the government forcing government-controlled Petróleo
Brasileiro SA, or Petrobras, to sell gasoline at an artificially
low price, ethanol producers have to keep the price of ethanol
lower as well. Ethanol producers say the low price and the lack of
transparency in pricing are deterring investment in new ethanol
production capacity.
Ms. Rousseff argued that U.S.-made corn ethanol has become more
competitive because of "lots of technology." She told reporters,
"sugar-cane ethanol will have to be more competitive," after
delivering her main speech to an audience of farmers. She pledged
to have the government help producers to increase productivity.
When asked about the ethanol industry, Mr. Neves said that the
sector needs "predictability" and a new policy of minimum prices
for producers. Mr. Campos wasn't asked about the subject.
Later this month, the candidates will begin a two-month long
television campaign, with free prime time to explain their
proposals. The presidential election will be held October 5.
Write to Paulo Trevisani at paulo.trevisani@wsj.com and Jeffrey
T. Lewis at jeffrey.lewis@wsj.com
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