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Country Industry Forecast - Political and Policy Analysis for the Brazilian Chemicals Materials and Foods Industry
Frost & Sullivan, Oct 2007, Pages: 38
The Brazilian chemicals and materials industry has earned its place in the spotlight by accounting for 3.1 percent of the country’s gross domestic product (GDP) in 2006. In fact, Brazil’s is the largest chemicals and materials industry in Latin America and has won the support of the Government. Some favorable financial measures for this industry include restructuring of the tax collection mechanism and reduction in the import tax rates for capital goods. Brazil is the world leader in several areas of the agricultural sector - it has the biggest commercial herd and is the largest producer of soy, coffee, sugar, orange juice, as well as milk and poultry products. Since the vast agricultural land base and different climatic conditions are suitable for cultivating a range of agricultural commodities, Brazil’s food processing industry has a huge advantage. The agricultural sector is influenced by strong market orientation rather than government intervention. However, this feature makes it vulnerable to overvalued currency exchange rate, inadequate investments in infrastructure, and reduction of expenditure in research and development.
Brazil has emerged as one of the top ten economies in the world, with its manufacturing and services sectors being prominent in Latin America. The current political and policy environment plays a crucial role in the chemicals, materials, and foods (CMF) industry. Past Government policies have helped modernize the nation and supply essential commodities. The Brazilian chemicals industry association (ABIQUIM) has set forth certain important proposals to the Government and if they are implemented, the industry could witness an increase in investments and competitiveness.
Frost & Sullivan’s Chemicals, Materials, and Foods (CMF) Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its CMF industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.
Benefits of this Service
Identify New Market Opportunities
The future trends of the political and policy environment of Brazil have been analyzed along with their impact on the CMF industry. This analysis will provide valuable information to industry participants on opportunities in specific segments of the Brazilian industry.
Understand Future Industry Trends
The research gives an insight into the Brazilian CMF industry, discusses its dependence on the prevailing political and policy scenario, and forecasts its future. This will help industry participants to gauge the direction of the market, enabling them to devise appropriate strategies to improve market share.
Comprehend Policy and Regulatory Environment
A detailed analysis of the policy and regulatory framework of the Brazilian CMF industry provides insights into the regulatory environment as it exists and the future direction of the same. This is particularly beneficial in the case of the chemicals and foods industry as the regulations form an important criterion for industry performance.
Devise Country Entry Strategies
The research provides valuable information and analysis of the strengths and weaknesses of the political and policy environment of Brazil, which are relevant to the CMF industry. This is particularly useful in devising country-specific strategies for industry participants.
Evaluate Industry Segment Potential
This study offers detailed coverage of political issues and industry-specific and macro economic policies impacting the industry. It provides both country and industry trends and forecasts for major variables and is an excellent tool for companies that plan to enter new geographic markets. This will help corporate planners in developing accurate business plans.
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