Manufacturing in Brazil

Two factors

Raw Materials, and Government Intervention

Agricultural success 

Results in successful food-processing 

Leading producer

Coffee, beef, sugar, oranges

Companies

Over 45,000 food-processing companies set up in Brazil, e.g. Nestlé

Industry reveneue

Developes €200 billion in revenue per annum

Sugar importance 

Can be converted into ethanol which can be used as a biofuel to power cars. 

Successful textiles industry

5th largest clothing export globally, 2nd largest domestic employer.

Link textiles to agriculture

Leather from beef industry, and wool from sheep.

Limestone and iron 

Found in Minas Gerais, 9th largest steel export globally. Impacts car manufacturing. 

Oil reserves

2 large oil reserves off Rio de Janerio coast, encourages petrochemical development, several large ports in Rio to export.

Government influence

Greatly influenced as Brazil were previously reliant on colonialist trade.

WW2 

Domestic industry boom during/post WW2 with a shortage of imported goods. 

Beginning Protectionism

Shielding domestic industry from other by imposing tariffs and bans on imported products. Manufacturing grew rapidly in the 1970’s to keep up with demand, and also promotion of rural urban migration.

“The Real Plan” 1994

Increased manufacturing sector, reduced inflation, improved currency value, and GDP rose significantly.

Mercosur

Mercosur, South American Economic Union attracted investment from MNC’s as it allowed a vast market

Economic cities 

Development of Brasilia, economically established in 1950’s to veer overpopulation away from Sao Paolo.