Sustainable or Unsustainable: Navigating a World in Flux at your choice and risk.

Good afternoon, dear reader,

The current landscape is complex, with misinformation and uncertainty alongside significant opportunities. Despite global economic challenges, we reaffirm the importance of certified end-to-end sustainability and traceability. Each project owner understands their goals and constraints. We are not isolated but integrated, facing competition despite our strengths. We may not be the first choice for institutional investors or command the highest prices, but we are well-informed and understand market expectations.

Key Points Emphasized

• The current economic climate is challenging but presents opportunities.
• Sustainability and traceability are crucial.
• Project owners are responsible for their decisions.
• The market is competitive, and everyone needs to understand the landscape.

Unsustainable Realities & the Brazilian Response

The global economy is facing a turbulent storm, fueled by China's economic woes and a looming recession. The collapse of China's real estate market has unleashed a cascade of challenges, including a steel glut that's impacting producers worldwide.

downward sloping line graph, representing declining GDP growth

Amidst this uncertainty, Brazil emerges as a beacon of resilience, its agribusiness and mining sectors demonstrating strength amidst adversity.

Agribusiness: A Resilient Force

lush green soybean field stretching towards the horizon

Brazilian agribusiness has defied the global slowdown, achieving record exports of US$166.19 billion in 2023. Fueled by strong external demand and a favorable exchange rate, the sector is poised for continued growth, projected at 3.5% in 2024.

table comparing land costs in Brazil, USA, Australia, Canada, EU, and China, adjusted for PPP

table comparing labor costs in Brazil, USA, Australia, Canada, EU, and China, adjusted for PPP

table comparing energy costs in Brazil, USA, Australia, Canada, EU, and China, adjusted for PPP

table comparing logistics costs in Brazil, USA, Australia, Canada, EU, and China, adjusted for PPP

Mining: Navigating Challenges

vast openpit mine, highlighting the scale and environmental impact of mining operations

The mining sector faces headwinds from falling commodity prices and the Chinese economic slowdown. However, a recovery is anticipated in 2024, driven by the resumption of Chinese demand and new projects. Diversification into other minerals and sustainable practices offer avenues for long-term growth.

Sustainability: The Imperative

The current crisis underscores the urgent need for sustainable practices. Stricter market access restrictions will favor enterprises committed to ESG principles, green innovation, and social responsibility. Brazil, with its vast agricultural potential and environmental commitment, is well-positioned to lead in this new era.

Cost Efficiency & Adaptation

The recession necessitates a shift towards cost reduction, efficiency, and digital transformation. Embracing lean principles, precision agriculture, and data-driven decision-making can enhance profitability and competitiveness.

We are back to the time of cutting costs and doing as much as possible??in the workshops, in the factories, in the city, assembling and not incurring redundant fiscal costs?of buying a label and having someone do a service that we always did at home in the past.??That time is back.??So, we will now give you some information about our projects and recent studies, once we are EPC-M Technologies and Proprietary Engineering not Equipment sellers or producer, but engaged at "P"to deliver the best at the lowest costs,???so that you know if it is always up? to you? spend more or less than that, once always it is your own projects, results and costs.?

Examples all the options as possible are available to the Customers, from good but more simple one, to the most sophisticated and updated in the world, to provide such range and options are our job for you.

1. A factory to process corn, independent of an attached sugar mill,?could cost turn key R$ 170 million, Alarico's standard model, as he did there at GEM - Paulo, in Acreúna-GO,?with a fossil solvent, of course, or,?
2. It could be a version, already incorporating our technology and from? VogelBush Viena? and others,?to reduce energy costs by half, which will cost, still fossil,?the model standard have there in Argentina, this will cost, with technology, with everything, R$ 260 Mio, or if annex to a Sugar Plant and without Broilers at R$ 200 Mio;?
3. it could be a totally sustainable model, traceable, ESG Green Innovatech Foods and Energies green edible all together, food, etc, etc, which will cost about R$ 500 mio, if independent. If annex to existing Sugar Mills without Boillers and others facilities, can cost about R$ 400,0 Mio.?
4. Bio Diesel newest generation from our associated De Smet Ballestra, for 600 ton per day biodiesel of higher quality, should cost about R$ 100,0 Mio. Biodigesters closed loop clean and green , at about? R$ 30,0 Mio as well as Food Grade CO2 Food Grade Green Edible can imply in a Capex of about 40,0Mio turn Key;
5. All these are the best quality and guaranteed performance, and delivered assembled by you/under our supervision and designs, working well;?
6. surely there are not two projects similar, so to study case by case to? and adjust, our work can include revamps and adjustments for better operation we will suggest, but never paying higher and some absurds we have listened.
7. there is no free lunch, miracles at the end cost a fortune a lot of projects suffer such problems. Prevent it, there is some "important friends" which try to influence you but must be not with your money. Keep eyes open.
8. finally Silos: American, Europe, Japan, Australia models proper to storage corn, sorghum, soya, sunflowers, etc..., let say for 200.000 tons static capacity should cost turn key about R$ 100,0 Mio be ready to operate within 9 months. Very practical tested at Chicago and Illinois with that windy and cold by far bellow zero.? ?

If we spent Billions?where are we going to get that billion??There's no need.?Or, a good boiler, even if it's not necessary, is a high-pressure one,??which costs at least 200 million, and a suitable boiler has a pressure of 42 bar for 175 sth that our process needed to operating? 345 days year once we save energies and be clean and be green and clean, fully equipped.?

Certify your Plant , why not?, and you will have almost for free options otherwise no way back latter on. Consult us we are doing that since 2004, becoming same time leaders in the world fore that.?

Scenario Analysis: Charting the Future of Brazilian Agribusiness

The Choice is Clear

Sustainability is not merely a choice; it's an imperative for long-term success. Brazil's agribusiness and mining sectors have the potential to thrive in this new paradigm, demonstrating that responsible practices and economic growth can go hand in hand.

Conclusion

The global landscape is fraught with challenges, but also opportunities. By embracing sustainability, innovation, and adaptability, Brazil can navigate the storm and emerge stronger, setting an example for the world.

Brazilian flag waving proudly

Disclaimer:?The information provided is based on current analysis. The future is inherently uncertain, and outcomes may differ from projections.

About the author

Ant?nio Iafelice?

CEO Consultant | Advisor to the Board of

COSAG/ FIESP - Senior Agribusiness Advisor | Senior Operational Executive | Agribusiness Expert | Creation

Expert in Agribusiness | Creation of companies covering all phases of business

Gliese AG

https://www.glieseag.com.br/