Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06BRASILIA476, BRAZIL'S ADVENTURES IN ETHANOL

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BRASILIA476.
Reference ID Created Released Classification Origin
06BRASILIA476 2006-03-10 20:01 2011-07-11 00:00 UNCLASSIFIED Embassy Brasilia
VZCZCXRO5548
PP RUEHRG
DE RUEHBR #0476 0692001
ZNR UUUUU ZZH
P 102001Z MAR 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 4766
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 1676
RUEHSO/AMCONSUL SAO PAULO 6529
RUEHRG/AMCONSUL RECIFE 4450
UNCLAS BRASILIA 000476 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EWHITE OES/EGC AND PKELLY OES/STC; OES/ETC GTHOMPSON; BSC 
WPOPP 
DEPT PLEASE PASS TO SLADISLAW DOE 
 
E.O. 12958: N/A 
TAGS: TRGY SENV ENRG KSCA ETRD EAGR BR
SUBJECT: BRAZIL'S ADVENTURES IN ETHANOL 
 
1. Summary: Ethanol continues to be at the forefront of 
international politics, as sky-high oil prices have highlighted the 
necessity to find alternative fuels sources.  Brazil, with a 
30-year-old alcohol program and a sophisticated production and 
distribution infrastructure, is a model that many countries are 
trying to emulate.  Yet, for all of the emphasis being placed on 
ethanol, 2006 has shown alcohol's inherent weaknesses, stemming from 
limits on expanding production.  Although industry in Brazil has 
managed to stock a considerable amount of ethanol for the January to 
March intercrop period, demand is increasing more rapidly than 
sugarcane cultivation (which can only increase at a modest rate 
since it is a product with a multi-year cultivation cycle).  While 
the flex-car fleet expands by 150% a year, cane acreage expands by 
less than 10%.  This profoundly affects the supply and, therefore, 
cost of ethanol.  Ethanol has become so popular, with more than 80% 
of new light-vehicle sales in Brazil being flex-fuel and a surge in 
worldwide demand, that prices have nearly doubled in the past seven 
months. End Summary 
 
2. Steep price increases remain at the forefront of Brazil's present 
ethanol worries.  Since January, prices have risen to 70% the cost 
of gasoline, in almost every Brazilian state, making it more 
cost-effective for flex car owners to buy gasoline.  Responding to 
the price increases, the GoB struck a deal with the ethanol industry 
to erect a wholesale price ceiling of R$1.05/liter.  However, by 
mid-February prices were already hovering at R$1.07/liter and the 
current mean price is R$1.20/liter.  While the GoB has cried foul, 
industrialists maintain that prices have risen, in spite of the 
accord, because of "the enormous pressure exercised by the market". 
The GoB retaliated by reducing the quota of alcohol to be mixed with 
gasoline from 25-20% and has threatened to impose a system of export 
quotas, which would afford ethanol treatment similar to that for 
gasoline, in order to conserve ethanol stocks. 
 
3. While there are a number of factors exerting market pressure on 
ethanol, increased internal and external demand are the most 
important.  According to the Ministry of Agriculture, ethanol 
exports in January of 2006 were 93% higher than the previous year, 
and have increased 225% since 2000.  As the world's largest sugar 
and ethanol producer, this is in line with Brazil's future goals to 
propagate a world ethanol ethos and a market for its product. 
Additionally, a 10% surge in domestic consumption over the last 
year, fueled by a boom in flex-fuel car production, has taken 
analysts by surprise. 
 
4. To keep up with increased demand, the sugar/alcohol industry 
predicts needing investments of R$14 billion by 2010 to increase 
Brazil's milling capacity by 50% and another R$7 billion to expand 
crop area.  Similarly, the GoB estimates that the sugarcane industry 
will need an additional R$10 billion in investment by 2012, to add 
2.5 million new hectares of planted cane (a 50% increase) and 73 new 
refineries.  Nevertheless, there is still debate concerning how to 
combat future price fluctuations like those seen this year.  The GoB 
maintains that it is necessary to shore up the production chain, and 
Unica is requesting that the government create financial mechanisms 
or reserve stocks in order to guarantee price stability.  According 
to Unica's Onorio Kitayama, approximaely R$3.5 billion is necessary 
to guarantee stocs of 5 billion liters which industry estimates 
wuld maintain price stability.  Other industry representatives, 
however, contend that "high prices during the intercrop period will 
continue," regardless of an increase in production potential. 
 
5. For the present, the Minister for Agriculture Roberto Rodriquez 
is assuring the public that ethanol stocks will last until ethanol 
production renews in May, negating claims that there is a "crisis of 
alcohol".  "There is not a crisis, not even a icrocrisis.  It is 
clear that stocks are more thn sufficient."  He also affirmed that 
Brazil has an additional 600 million liters of alcohol stocked away. 
 Although prices are expected to drop slightly with the new 
harvest/production cycle, the realization that sales will have to be 
rationed over the next twelve months to guarantee supply means that 
prices will remain higher than that to which Brazilians are 
accustomed. 
 
6. Comment: Despite government attempts to control prices, market 
forces make Brazil's current situation demonstrative for two 
reasons.  First, it reveals the hazards of monoculture dependency, 
especially on a double-tasked crop like sugar, and the need to 
diversify ethanol sources.  Second, the scenario dictates that the 
present is the proper time for sugar/ethanol producers to invest in 
order to meet future demands.  Further updates on Brazil's ethanol 
matrix will follow. 
 
CHICOLA