Article: Brazil's costs drive change: South America's low-cost candy powerhouse is now reinventing itself after losing its price advantage. Steve Forster reports from Curitiba.(SPECIAL REPORT)

SUGAR PRICE CHALLENGES are not unique to the U.S. candy business--even in a land of sugar, where price increases are biting. Add in a strong Brazilian Real and increasing transport charges and Brazilian confectioners are having to adjust to a new world order where their candy prices are not as attractive as only a year ago.

Since then, the price of sugar has nearly doubled as the country embarks on a national program of using the crop for ethanol blending to offset oil consumption. That, combined with a weakening U.S. dollar, has spelled difficulties for Brazilian candy suppliers. Compare the USD/Real exchange rate of 3.54 Reais to the USD in 2002 with the current ...

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