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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: GraceZ who wrote (87765)10/18/2007 1:20:05 PM
From: elmatador  Read Replies (1) of 110194
 
Great posting! I can connect what you wrote with the commodity exporting of Brazil. "A lack of rail, road and port facilities is hampering expansion of exports of iron ore, soybean, sugar and other commodities.

``Brazil needs to think big and resolve its energy and transport problems if it wants to grow,'' Batista said yesterday from his office in Rio de Janeiro. ``Brazil is modern, but its infrastructure is practically Jurassic.''

For instance soybeans. Yowa can compete with Brazil, even though the land price is higher in the US. That because the US has a better transport infrastructure and business is more efficient.

Once you get the best seeds, the best soil, and the climate is good, you still have a lot of room to extract efficiency: improve pot-holed roads, build by-pass along the way from farm to harbors, improve railroads and inefficient ports.

You get cheap labor, but you get what you pay for, so the country needs to better educate the labor force.

farms.com
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