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Article: Brazil's rising costs drive major changes: Steve Forster reports from Sweet Brazil in Curitiba on how South America's low-cost candy powerhouse is quickly trying to reinvent itself after losing its price advantage.(SPECIAL REPORT)
- Article from:
- Candy Business
- Article date:
- November 1, 2006
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SUGAR PRICE CHALLENGES are not unique to the U.S. candy business--even in Brazil, a land of sugar, price increases are biting. Add in a strong Brazilian Real and higher transport charges and confectioners are having to adjust to a new world order where their candy prices are not as attractive as they were only a year ago.
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Since then, the price of sugar has nearly doubled as the country embarks on a national program to offset oil consumption by using the crop for ethanol blending. 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 ...