There is nothing quite as good as a bowl of Corn Flakes when you just need to have one. Well, in the not too distant future, those flakes may be made with corn grown in Brazil, really.
With so much land dedicated to cultivation, Brazil is increasing its exports of food and foodstuffs. Currently, U.S. imports of Brazilian corn are small by global standards but they are rising fast, and they mark just one element of the increasingly complex and sometimes contentious relations between the world’s agricultural superpower – the U.S. — and its fast-growing competitors amid shifts in the global economy.
Now led by U.S. private equity money and Midwestern know-how, Brazil has established a massive agribusiness industry. Just as American firms have moved production to China to be close to potential consumers, the John Deere equipment trundling across Brazilian fields and the Kellogg’s Corn Flakes found in Brazilian supermarkets come from local factories.
Despite what is described as intense cooperation between the two governments, there is an underlying current of competition. Brazil challenged U.S. cotton programs in the World Trade Organization in 2009, arguing that U.S. government support for domestic growers held down world prices and hurt cotton farmers in Brazil. Are they out of their cotton-picking minds!
Now, back to that bowl of Corn Flakes, because they’re Grrrreat! Wherever they come from.
Read Howard Schneider’s The Washington Post article here:
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