Tag Archives: Brazil

Drought may force Brazil to ration power, says Vice President Mourao

BRASILIA (Reuters) – Brazilian Vice President Hamilton Mourao said on Wednesday a severe drought could lead to energy rationing in Brazil, contradicting other officials who have said that such a step would not be necessary.

Brazil, one of the world’s agricultural superpowers, is suffering from one of its worst droughts in a century. The lack of rainfall has emptied hydroelectric reservoirs, fanned inflation and hurt farmers. The government has given incentives to use less energy but says rationing is not expected.

“There may have to be some rationing,” Mourao told reporters in Brasilia, although he said the government had taken necessary measures to prevent blackouts.

Brazil’s Mines and Energy Minister Bento Albuquerque on Tuesday said the country’s energy crisis was worse than previously thought. In a televised national address, Albuquerque said Brazil had lost hydropower output equal to the energy consumed by the city of Rio de Janeiro, Brazil’s second largest, in five months.

Separately on Tuesday, the ministry announced it would once again raise energy prices, with affected consumers paying on average 6.78% more for electricity starting on Sept. 1.

The meteorological outlook remains grim for Brazil. Rainfall in energy-producing regions is likely to remain well below average in September, the national grid operator ONS said last week.

(Reporting by Gabriel Stargardter in Rio de Janeiro and Lisandra Paraguassu in Brasilia; editing by Barbara Lewis)

Rio’s homeless brave unprecedented cold

RIO DE JANEIRO (Reuters) -As an unusual cold snap stuns residents of Rio de Janeiro, a Brazilian city famous for its sun, sand and sea, the city’s homeless have been struggling to sleep through the chill.

“It’s very cold. Even with two blankets and a quilt, I still felt horrible last night,” Flávio, who is homeless, said.

A polar air mass has been traveling toward the country’s center-south regions this week, bringing fast winds and rare snowfall to communities unfamiliar with low temperatures — and to street residents ill-equipped to handle them.

In Rio, Jeniffer Faria da Silva and Marlon Lemos Mollulo have been distributing warm food, blankets, clothes, shoes and bread to the city’s street residents as part of a project they began a year and a half ago. Traveling through the city at night, they’ve been placing thermal liners on concrete, where dozens of the city’s homeless sleep side by side to stay warm.

“There’s a lot of suffering, especially in Rio where we aren’t used to having these kinds of temperatures. We don’t have the right infrastructure to cope with the cold, and some of these people also have pets,” Silva said.

The polar air mass is slated to bring freezing temperatures to São Paulo and Minas Gerais, major producers of key commodities like sugar, citrus and coffee.

Temperatures in Rio are expected to drop to an unusual low of 9°C on Friday before gradually starting to warm up in August.

(Reporting by Sergio Queiroz, writing by Jimin Kang, Editing by Nick Zieminski)

Coffee, cane and orange crops at risk as temperatures plunge in Brazil

By Ana Mano

SAO PAULO (Reuters) -Temperatures fell in swathes of Brazil on Thursday – with rare snowfall overnight in some places – as a polar air mass advanced toward the center-south of the global agricultural powerhouse, threatening coffee, sugarcane and orange crops with frosts.

Unusually cold weather in Brazil has already sent international prices for coffee and sugar higher and Friday was forecast to be the coldest day of the year, according to Marco Antonio dos Santos, a partner at weather consultancy firm Rural Clima.

In a report on Thursday, dos Santos said the south of Goiás and the south of Mato Grosso do Sul, states where farmers grow crops like corn, would face cold temperatures on Friday as the wave of cold air marched northwards.

“With the polar air mass strengthening, it is getting even colder in most of the agricultural producing regions of center-south Brazil,” Santos said. “As such, the chances of frosts in coffee, sugarcane and orange areas increased dramatically.”

In Brazil’s southernmost state of Rio Grande do Sul, the cold wave has brought snow and cold rains to at least 13 cities on Wednesday.

Local television images showed tourists and locals taking photos and playing in the snow in the town of Sao Francisco de Paula as temperatures fell below zero.

The polar air mass should move over Sao Paulo and Minas Gerais, major producers of sugar, citrus and coffee, on Friday, bringing freezing temperatures.

The extreme weather sparked concerns in global markets of a weak harvest in Brazil, which is a major exporter of agricultural commodities.

Raw sugar futures on ICE hit a five month high on Thursday as investors continued pricing in the effects of the cold front in the world’s largest producer.

Agriculture federation FAESP in the main sugar belt Sao Paulo state said last week frosts had already hit 15% to 30% of the cane crop, which will probably lead to lower production.

Indian traders for the first time have signed sugar export contracts five months ahead of shipments as a likely drop in Brazil’s production prompted buyers to secure supplies in advance.

Arabica coffee prices touched a nearly seven-year high earlier this week as the unusual cold weather affected the crop in Brazil, the world’s top producer, with companies poised to pass on higher costs to consumers.

Preliminary estimates from the Brazilian government indicated last week’s frosts alone had affected 150,000 to 200,000 hectares (370,000-490,000 acres), about 11% of the country’s total arabica crop area.

“No one really knows the depth of damage undertaken,” said coffee exporter Comexim, which estimated a 13% loss on next year’s production at the Cerrado region in top coffee growing state Minas Gerais.

Brazil’s second corn crop, which represents 70% to 75% of production in a given year, has suffered from drought and the ill-timed frost as farmers began to harvest it. Corn is a key ingredient for livestock feed.

The state of Parana, Brazil’s number 2 grains producer, cut its projection for the second corn crop by nearly 40% on Thursday to 6.1 million tonnes.

The situation led global grain traders to exit their export contracts using washout clauses, sharply reducing Brazil’s export prospects this year and increasing the need to raise corn imports.

Wheat is also at risk from frosts as around a third of crops in Parana, the largest Brazilian producer, is at a development stage prone to damage from cold.

(Reporting by Ana Mano; additional reporting by Marcelo Teixeira in New York;Editing by Daniel Flynn and Marguerita Choy)

Freak Brazil frost hits heart of coffee belt, damaging crops

By Nayara Figueiredo and Marcelo Teixeira

SAO PAULO/NEW YORK (Reuters) – An unusual cold snap, with temperatures dropping to freezing levels in a matter of minutes, delivered a blow to the heart of Brazil’s coffee belt, damaging trees and harming prospects for next year’s crop, farmers said on Wednesday.

Agricultural products across the western hemisphere have been beset by unusually bad weather – be it floods or extreme drought – all season. Brazil is the world’s largest coffee producer, as its climate is most conducive for production of the beans. Coffee prices surged nearly 14% in response to the frosts, nearing four-and-a-half year highs.

The sudden frost happened in the morning of July 20. Farmers, brokers and analysts were assessing their crops on Wednesday after reports that the cold snap was much stronger than expected.

“I’ve never seen something like that. We knew it would be cold, we were monitoring, but temperatures suddenly went several degrees down when it was already early morning,” said Mario Alvarenga, a coffee producer with two farms in the southern part of Minas Gerais, Brazil’s largest producing state.

Farmers shared pictures of their crops, where large black areas were visible in places where they should see dark green spots marking coffee trees.

“I will probably have to take out some 80,000 trees, they are burned all the way to the bottom,” said Airton Gonçalves, who farms 100 hectares of coffee in Patrocinio, in the Cerrado region of Minas Gerais.

“I was going to the farm yesterday and a sensor in the truck started to alert me about ice in the road. I thought the system had gone crazy. But when I got to the farm, it was covered in ice, the roofs, the crops.”

According to reports, the frost hit areas all the way from the south to the central parts of Minas Gerais.

Joel de Souza Borges, a coffee broker in Patrocinio, believes that around 50% of farms in the Cerrado region were hit. He said this year’s production will not be harmed, since most areas were already harvested, but production in 2022 is a question mark.

“In some cases the trees recover, you need to cut down some of the branches. In other cases, you have to take the tree out and replant,” he said.

Farmer Gonçalves estimates his production in 2022 will fall from 5,500 bags to around 1,500 bags.

(Reporting by Marcelo Teixeira; editing by David Evans)

Brazil sees most June fires in Amazon rainforest since 2007

BRASILIA (Reuters) – Brazil recorded the most fires in the Amazon rainforest in 14 years for the month of June, government data showed on Thursday, amid worries that an extreme drought in many parts of the region could fuel worse fires in months to come.

National space research agency Inpe recorded 2,308 hot spots in the Brazilian Amazon in June, a 2.7% rise from the same month a year ago, when fires had reached a 13-year high.

While the number of fires in June only amount to a fraction of those seen at the peak of the dry season in August and September, environmental advocates fear it’s a sign of worse to come.

“With a high number of fires already at the start of the Amazon Summer, when there is naturally a decline in rains in the Amazon, this number will likely rise,” Greenpeace Brasil said in a statement.

Scientists warn that dry weather along the Amazon’s so-called “arc of deforestation” and in the Pantanal wetlands could drive a worse fire season. Hydroelectric plants across the country have reported the lowest water inflows in 91 years amid intense drought, according to the Mines and Energy Ministry.

Fires in the Amazon are overwhelmingly man-made, with natural blazes extremely rare. Generally, loggers illegally cut down valuable trees and then land-grabbers set a fire to clear the space for cattle. Fire can also be used as part of traditional agriculture.

Dry weather increases the odds of fires running out of control.

President Jair Bolsonaro earlier this week banned most outdoor fires in the country for 120 days as a precaution and deployed the military to protect the region from fires and deforestation.

Those policy moves repeat steps taken in 2019 and 2020 that failed to lower deforestation and fires. For the full year of 2020, fires in the Amazon reached a four-year high, while deforestation hit a 12-year high, according to Inpe.

(Reporting by Jake Spring; Editing by Mark Potter)

Brazil on drought alert as country faces worst dry spell in 91 years

cracked ground in Brazil

By Roberto Samora and Ana Mano

SAO PAULO (Reuters) – Brazilian government agencies warned of droughts across the country this week as the nation faces its worst dry spell in 91 years, hurting hydroelectric power generation and agriculture while raising the risk of fires in the Amazon rainforest.

Late on Thursday, an agency linked to Brazil’s Mines and Energy Ministry recommended that the country’s water regulator ANA recognize a state of “water scarcity,” after a prolonged drought hit Central and Southern parts of Brazil along the Paraná river basin.

Separately, a weather monitoring agency linked to the Agriculture Ministry issued its first “emergency drought alert” for June to September, saying rains are likely to remain scarce in five Brazilian states during that period.

The lack of rain across much of Brazil has negative implications for grain cultivation, livestock and electricity generation, as Brazil relies heavily on hydro dams for its power. Dry weather this year also raises the risk of severe fires in Brazil’s Amazon rainforest and Pantanal wetlands, scientists say.

Drier-than-normal weather has hurt production of sugar and coffee in Brazil, the world’s largest supplier of those products, pushing up futures prices for the commodities.

Coffee futures touched a fresh 4-1/2 year high on Friday with traders worried that critical soil moisture in Minas Gerais could affect the 2022 coffee crop as well.

The Mines and Energy Ministry said dry conditions will persist in coming months, particularly in the Southeast and Center West regions.

As it tries to deal with the situation, the ministry announced measures aimed at adjusting water levels that supply the country’s hydro dams in a bid to avoid power shortages.

(Reporting by Roberto Samora, Ana Mano in São Paulo; Additional reporting by Marcelo Teixeira in New York; Editing by Richard Chang)

Biden looks abroad for electric vehicle metals, in blow to U.S. miners

By Ernest Scheyder and Trevor Hunnicutt

(Reuters) – U.S. President Joe Biden will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on processing them domestically into battery parts, part of a strategy designed to placate environmentalists, two administration officials with direct knowledge told Reuters.

The plans will be a blow to U.S. miners who had hoped Biden would rely primarily on domestically sourced metals, as his campaign had signaled last autumn, to help fulfill his ambitions for a less carbon-intensive economy.

Rather than focus on permitting more U.S. mines, Biden’s team is more focused on creating jobs that process minerals domestically into electric vehicle (EV) battery parts, according to the people.

Such a plan would help cut U.S. reliance on industry leader China for EV materials while also enticing unions with manufacturing work and, in theory, reduce pandemic-fueled unemployment.

The U.S. Commerce Department is organizing a June conference to attract more EV manufacturing to the country. Biden’s proposed $1.7 trillion infrastructure plan earmarks $174 billion to boost the domestic EV market with tax credits and grants for battery manufacturers, among other incentives. The department declined to comment.

“It’s not that hard to dig a hole. What’s hard is getting that stuff out and getting it to processing facilities. That’s what the U.S. government is focused on,” said one of the sources.

The approach would see the United States rely on Canada, Australia, and Brazil – among others – to produce most of the critical raw materials needed, while it competes for higher-value jobs turning those minerals into computer chips and batteries, according to the two sources.

Securing the full supply chain from metals to batteries does not require the United States to be the primary producer of the raw materials, said one of the sources.

A full strategy will be finalized after a year-long supply chain review involving national security and economic development officials.

Biden officials want to ensure the administration’s EV aspirations are not imperiled as domestic mines face roadblocks, the sources said, both from environmentalists and even some Democrats.

“It rings hollow when I hear everyone use this as a national defense argument, that we have to build new mines to have a greener economy,” said U.S. Representative Betty McCollum, a Democrat who has introduced legislation that would permanently block Antofagasta Plc’s proposed Twin Metals copper mine in Minnesota.

Ali Zaidi, deputy White House national climate advisor, said the administration was focused on a strategy that “leverages our domestic resources in a way that’s responsible”, noting that included recycling in the supply chain.

While U.S. projects from small and large miners alike will feel the impact, the pain from any blocked projects will fall disproportionately on smaller, U.S.-focused companies. Many large miners also have global projects that could benefit from the administration’s plan.

“We can no longer push the production of the products we want to places we cannot see and to people we will never meet,” said Mckinsey Lyon of Perpetua Resources Corp, which is trying to develop Idaho’s Stibnite mine to produce gold and antimony used to make EV battery alloys.

INVESTMENTS

The U.S. government in April became the largest shareholder in mining investment firm TechMet, which controls a Brazilian nickel project, a Rwandan tungsten mine and is a major investor in a Canadian battery recycler.

Washington also funds research into Canadian cobalt projects and rare earths projects in Malawi, among other international investments.

The State Department’s Energy Resource Governance Initiative (ERGI) is one of the main programs Washington plans to use to help allies discover and develop lithium, cobalt and other EV metals. To be sure, Washington is not ignoring domestic mining.

The U.S. Department of Energy has awarded grants to help old coal mines find ways to produce rare earths. U.S. officials have also funded MP Materials Corp, which owns the country’s only rare earths mine, though it relies on Chinese processors.

But the bulk of Biden’s approach is designed to sidestep battles with environmentalists and save capital for other fights, according to one administration source. During a visit to a Ford Motor Co plant in Michigan on May 18, Biden called for government grants for new EV battery facilities. He mentioned Australia’s lithium reserves during the tour, but not large U.S. supplies of the key battery mineral.

Republicans say Biden’s EV plans will be impossible to achieve without more U.S. mines.

“These ‘not-in-my-backyard’ extremists have made clear they want to lock up our land and prevent the mining of minerals,” U.S. Representative Lauren Boebert, a Colorado Republican, told a House Natural Resources Committee forum held the same day as Biden’s Michigan visit.

PLACATING LABOR

Biden’s approach comes with risks, including angering political supporters within the labor movement who want the administration to have an openness to resource extraction and the attendant jobs.

“Let’s let Americans extract these minerals from the earth,” said Aaron Butler of United Association Local 469 union, which does work for Rio Tinto Ltd’s proposed Resolution copper mine project in Arizona and endorsed Biden in the elections. “These are good-paying jobs.” Many of the skills that labor unions would use to build mines, including concrete and electrical work, can also be used to build EV metal processing plants.

The National Mining Association, an industry trade group, has been lobbying the White House and Congress to support domestic projects, arguing that the coronavirus pandemic showed the importance of localizing supply chains.

Biden’s White House is now quietly working to enlist labor support as it tries to build a case that its green policies are creating jobs, ahead of the 2022 midterm elections that could determine whether the strategy wins congressional backing, according to two organized labor sources familiar with the campaign Biden officials have reached out to unions across the country asking for specific job-boosting projects the administration can take credit for, the labor sources said.

(Reporting by Ernest Scheyder in Houston and Trevor Hunnicutt in Washington; Editing by Amran Abocar and Marguerita Choy)

Brazilian drugmaker completes first batch of Russian COVID-19 vaccine

By Leonardo Benassatto

GUARULHOS, Brazil (Reuters) -Brazilian pharmaceutical company União Quimica completed production of its first batch of the Sputnik V coronavirus vaccine with active ingredients and technology supplied by Russia, the company said on Thursday.

The vaccine will be exported to neighboring countries in South America, since Brazil has not yet approved the Russian shot for domestic use.

Moscow’s Gamaleya Institute, which developed the vaccine, said it had seen to quality control of the vaccine ingredients, which were put into vials and packaged for shipping – a process known as fill and finish – at the União Quimica plant in Guarulhos, just outside the city of São Paulo.

The factory’s first batch of 100,000 doses were packed into boxes labeled in Spanish, although the countries receiving them have not been decided yet by the Russian Direct Investment Fund (RDIF), executives said.

Fernando Marques, chief executive of the family-owned firm, said Paraguay, Uruguay and Argentina are interested in buying the vaccine. União Quimica will have a capacity for 8 million doses a month, when Brazil’s health regulator Anvisa approves its use in Brazil, he told Reuters.

Anvisa approval has been delayed after the agency took issue with some documents and missing trial data that the RDIF, which is marketing the shot, has been asked to provide.

Marques hopes approval will be given by June and his company will start producing the active ingredient at its biomedical lab in Brasilia instead of importing it from Russia.

RDIF said it has signed production contracts for Sputnik V with 20 manufacturing sites in India, Argentina, South Korea, China, Italy, Serbia, Egypt, Turkey, Belarus and Kazakhstan.

So far, the vaccine has already been produced in Russia, Serbia, Turkey, Egypt and Argentina, where the first test batch was produced on April 20 by Laboratorios Richmond, RDIF said.

(Reporting by Leonardo Benassatto and Anthony Boadle; Editing by Bill Berkrot)

Brazil’s easing of COVID-19 controls will cause new surge, experts warn

By Pedro Fonseca

RIO DE JANEIRO (Reuters) – The corner bars are jammed once again with rambunctious crowds in Brazil’s largest cities, but health experts warn that the easing of COVID-19 restrictions is premature and will deepen the world’s second deadliest pandemic.

“People think the pandemic is over … but we are racing towards the edge of a precipice,” said epidemiologist Wanderson Oliveira, the country’s former health surveillance secretary.

With no national policy coordination by far-right President Jair Bolsonaro’s government, and under pressure to get their economies running again, Brazilian governors and mayors have eased restrictions on non-essential activities.

In Rio de Janeiro, authorities have even allowed live music performances to resume in bars.

“In two or three months we will have an increase in deaths as a result of these measures. Hospitals are filling up and most patients die, unfortunately,” said Jesem Orellana, an epidemiologist at the Fiocruz biomedical center.

Brazil has lagged other nations in vaccinating its people, and the government of Bolsonaro, who has opposed lockdowns and played down the gravity of the virus, is under investigation in Congress for failing to secure timely vaccine supplies.

After reaching a peak of 4,249 COVID-19 deaths in a single day on April 8, Brazil has seen a stabilization at a still high plateau of about 2,000 fatalities a day, just below India.

Health experts are warning that Brazil has not learned from its mistake in easing restrictions last year that lead to this year’s lethal surge.

COVID-19 has killed 430,000 people in Brazil, second only to the United States, and the South American nation has the third highest number of overall confirmed cases of coronavirus after the United States and India.

According to Google’s mobility report based on the location of cell phones, the presence of people in workplaces last week reached its highest level since the beginning of monitoring.

The approaching southern hemisphere winter, when respiratory diseases multiply, is expected to make matters worse.

“It’s the worst possible time to become more flexible with social distancing restrictions in Brazil, especially in the south of the country,” said Orellana, from Fiocruz.

“The problem is not so much the return to normal activities, but the speed and irresponsibility of this return,” he added.

Fiocruz warned this week that social interaction, especially indoors with large numbers of people and little fresh air, must be avoided or else a new explosion of cases could be “catastrophic” in Brazil.

Orellana said only mass inoculation can avert such a scenario, but Brazil’s pace of vaccination is far too slow.

Only 16.3% of the population, or 34.4 million people, have received their first dose, and just 7.8%, or 16.4 million people, are fully vaccinated, according to the health ministry.

Due to supply constraints, daily vaccine doses administered have slumped to roughly half of their peak of over a million shots a day in mid April, according to “Our World in Data.”

(Reporting by Anthony Boadle; Editing by Bill Berkrot)

Brazilian firm to produce Russian vaccine without regulatory approval

BRASILIA (Reuters) – The Brazilian pharmaceutical company that plans to produce Russia’s Sputnik V coronavirus vaccine will start making it next week even before health regulator Anvisa gives approval for use in Brazil, the company’s chief executive said on Friday.

União Quimica’s facility in São Paulo has been certified by Anvisa for good production practices and the vaccine will be made for export to countries that have approved it, said CEO and founder Fernando Marques.

“We intend to start production next week with a view to export,” Marques said. He said Sputnik V will not be used in Brazil until it is approved, but neighboring Latin American countries have approved the vaccine and want deliveries.

Anvisa last week held off approving imports of Sputnik V sought by Brazilian state governors amid a second wave of the virus that has killed more than 415,000 Brazilians.

In a setback for the Russian vaccine, the regulator’s technical staff warned of “flaws” in the development and clinical testing of Sputnik, said the data presented on the vaccine’s safety and efficacy was incomplete.

Marques on Friday told a Senate commission on COVID-19 that União Quimica expects to receive a batch of active ingredient from Moscow next week to start making the vaccine for export at its plant near São Paulo’s Guarulhos airport.

“So, the situation today is this: we will start production, obviously when we receive the active ingredient, and we will wait for the registration to make the local production available for use in Brazil,” he told senators.

The Russian Direct Investment Fund that is marketing Sputnik V developed by Russia’s Gamaleya Research Institute has plans to supply the vaccine to Latin American countries from Brazil.

(Reporting by Anthony Boadle; editing by Grant McCool)