Crist mission: enlarge trade with Brazil

The governor's visit to the state's biggest trading partner puts a spotlight on energy.

By DAVID ADAMS, Times Latin America Correspondent
Published October 31, 2007

Over the last decade Brazil has quietly emerged as Florida's leading trade partner.

Two-way trade is already worth a staggering $11-billion. But that could soon get a lot bigger, as Gov. Charlie Crist sets off this weekend on a state-sponsored trade mission to Brazil.

The state's sudden recent interest in alternative energy and climate change has thrown a potentially huge new product - ethanol - into the trade mix. No surprise then that Brazil's ethanol industry, second only to the United States', is front and center of Crist's trade mission agenda.

"We have a governor who has taken the lead in challenging individuals in our state to consider the implications of climate change and the role of biofuels," said Jorge Arrizurieta, a trade expert at Akerman Senterfitt, one of Miami's largest law firms. "Now he's going to the birthplace of bioenergy. Seeing firsthand what Brazil has done to become a world leader in ethanol will be compelling."

Crist's schedule in Brazil includes a visit to the Barra Bonita ethanol refinery, the world's largest biofuels production facility, as well as a roundtable with Brazilian biofuels experts.

About 210 people will accompany Crist on the Brazil-Chile trade mission, including representatives from 57 companies and the state's five main ports, including Tampa.

Crist is keen to learn how Brazil has turned its sugar cane industry into a booming source of ethanol - and whether that model is applicable in Florida, also a large sugar cane producer.

"It is my goal while in Brazil to forge new alliances and develop new partnerships to promote trade in this hemisphere," Crist said. "Florida and Brazil can collaborate innovatively in both research and development."

Florida Crystals, the state's largest sugar cane grower, does not make ethanol because it gets a better price for producing sugar. But the company is exploring new cellulosic technology to produce ethanol from bagasse, leftover cane waste.

"We are big believers in renewable energy," said Gaston Cantens, spokesman for Florida Crystals, noting that the company already produces its own electricity from burning bagasse. Company vice president Jose Fanjul Jr. will join Crist in Brazil. "Ethanol is the next frontier. We believe in this, and we want to be part of it."

Crist will also visit the headquarters of Petrobras, Brazil's state-owned oil and gas company, which is Brazil's largest retail distributor of ethanol-blended gasoline.

As part of a new state energy plan, Crist is studying the possibility of importing ethanol from Brazil. Florida does not currently produce ethanol, though several projects are in different stages of development. Atlantic Alcohol, based at Albert Whitted Airport in St. Petersburg, is already brokering deals with Brazilian ethanol producers to import ethanol to the Florida market.

State agriculture officials want to promote domestic biofuel production, arguing that Florida can produce 40 percent of its biofuel needs with emerging cellulosic ethanol technology that can make fuel from wood chips, switch grass and sweet sorghum.

Crist will also pay a visit to the Brazilian aerospace company Embraer, the world's fourth largest passenger jet manufacturer, which sells to a number of U.S. airlines. The company has a major facility in Fort Lauderdale with 282 employees, with plans to add at least 50 more in the next three years. Demand for the midsize jets Embraer makes has risen sharply in the United States, as airlines shift their regional fleets to midsize jets that consume less fuel.

Brazil has been the state's largest trading partner for the last 10 years. But while trade with other countries has remained flat, Brazilian commercial ties have grown. Most of that growth has been in Florida's favor.

Two-way trade surpassed $11-billion last year, ahead of Canada and Japan. Of that about $7.7-billion are exports from Florida, compared to only $3.5-billion in imports.

"The mission will help trade in both ways," said Brazil's consul-general in Miami, Joao Almino. "Besides being good for Florida companies, it will help Brazilian exporters take notice of the Florida market."

Brazil is key to the growth of some of the state's fastest growing high-tech industries, including aviation, telecommunications, motor vehicle parts and medical equipment. Imports from Brazil also include footwear, coffee, meat, wood, furniture and fruit juice.

Trade experts point out that while not all of the goods exported from Florida are manufactured here, the traffic helps generate jobs at the state's air and seaports, and ancillary services.

"Florida is more than just a gateway for trade," said Manny Mencia, head of International Trade & Business Development at Enterprise Florida, the public-private partnership that is putting together the trade mission. "It's an entrepot, a business center where deals are made and financed."

Trip at a glance

About 210 people will accompany Gov. Charlie Crist on the Brazil-Chile trade mission from Nov. 3-8, including representatives from 57 companies and the state's five main ports.

The Tampa Bay-Brazil connection

While most of that trade and investment is centered in South Florida, Brazilian companies have begun to show major interest in the Tampa Bay area and Central Florida's orange groves.

Brazilian subsidiary, Citrosuco North America, operates a juice processing plant in Lake Wales, while Cutrale Citrus Juices USA has similar operations in Leesburg and Auburndale. More than 70 percent of citrus juice moving through the port of Tampa is from Brazil, port officials say.

Brazilian construction giant, Odebrecht, is in talks with the Port of Tampa to build ethanol storage tanks.

Another major Brazilian conglomerate, Votorantim, recently opened an aggregate and cement business and leased 19 acres at the port of Tampa for a bulk terminal. Brazil's steel giant Gerdau bought Tampa-based Ameristeel in 1999 and the new company Gerdau-Ameristeel is now the fourth-largest steel company in the North America. It's executive offices remain in Tampa.

[Last modified October 31, 2007, 01:14:33]