11:19Assessment- Sugar-rush-for-hy...Tuer costs.Production b0ostIf world sugar prices remain high, farmers are bound to plant more canes in future, in thehope of cashing in on the boom.Price of raw sugar 2009(cents per pound)2624222018161410 unMonthsSOURCE: ICEThere is already pressure on owners of prime Brazilian farmland to divert their resourcesfrom other crops, such as oranges, in favour of sugar.Brazil is the world's biggest producer of orange juice, shipping both frozen and chilledproduce around the world in specially-refrigerated vessels.But orange groves have to be cultivated for several years before they bear useful fruit - andthey need much more attention than sugar canes.In India, the trend appears to be going the other way.Many farmers moved away from sugar-cane in 2008 because they could get better,government-guaranteed prices for other crops, such as wheat and rice.For questions 4-6 you need to write a short paragraph explaining what has occurred andillustrate it with a supply diagram. It will be 8 marks for Ouestions1.) What is meant by supply?2.) What is the difference between a movement along the supply curve and a shift onthe supply curve? (-3.) List 5 examples of a shift on the supply curve4.) What has happened to the supply of Indian sugar this year?.5.) What has happened to the supply f Brrilian sugar as a result of the growingdemand for ethanol to fuel cars? -6.) What does the representative of Archer Consulting predict w" happen to the supplyof ethanol as a result of the Indian demand for sugar? (21 Jul30 Jul10 Aug19 Aug28 Aug 11:19Assessment- Sugar-rush-for-hy...Sugar rush for hyperactive BricsBy Robert Plummer, Business reporter, BBC News, 2/9/09The price of raw sugar is hitting highs not seen for nearly three decades - and the surgeis having a sweet-and-sour effecet on two of the burgeoning Brie economies.Sugar futures reached more than 24 cents a pound this week, the dearest they have beensince February 1981.That makes it a valuable earmer for the Centre-South region of Brazil, the largest sugar-canegrowing area in the world.At the same time, Brazil's position is strengthened by a collapse in production in India, theworld's number two sugar producer.The weakest monsoon rains in the Asian subcontinent for many years have led towidespread drought, hitting crops hard.However, India remains the top consumer of sugar and is relying on Brazilian imports tomake up the shortfall.Up to one million tonnes of Brazilian sugar have been bought by India in recent weeks,according to traders' estimates - and producers are betting that prices may climb as high as30 cents a pound before the current run peaks."There's still room for a further increase in prices if Indian demand remains strong," saysPlinio Mario Nastari of Brazil's Datagro consultancy.Food or fuel?All splendid news for Brazilian sugar plantation owners, you might think. But whereas Indiahas had a shortage of rainfall, Brazil's cane crops have been waterlogged by heavier-than-expected downpours.Sugar-cane needs dry weather to ripen in order to maximise its sucrose content, but northernSao Paulo state, one of the key areas of cultivation, has had its heaviest August rainfall inусаrs.That means more customers chasing less of the sweet stuff - and those customers includenot only people with a sweet tooth, but also the majority of Brazil's motorists.In recent years, more and more Brazilian sucrose has been turned into ethanol rather thansugar, as the country's roads have seen a huge increase in the number of "flex-fuel" vehiclesthat run on a mixture of petrol and alcohol.Rise, fall and rise of Brazil's biofuelMore than 90% of new cars in Brazil are adapted to accept ethanol as fuel, thanks to a state-run biofuel programme that began during the country's years of military rule as a way ofreducing its dependence on oil imports.So far, the cost of alcohol at the filling station has not reflected the 80% rise in raw sugarprices since the start of this year.However, pump prices have started to creep up in recent weeks, and analysts expect them torocket after the end of the sugar-cane harvest, which lasts from April to November."India is demanding sugar, which is priced 40% above cost, while alcohol is being soldbelow cost," says Amaldo Luiz Correa of Archer Consulting in Sao Paulo.For that reason, he says, factories will switch production from ethanol to sugar, pushing upfuel costs.Production boostIf world sugar prices remain high, farmers are bound to plant more canes in future, in thehope of cashing in on the boom.Price ot raw sugar 2009(cents per pound)26242220181614.MonthsSOURCE: ICEThere is already pressure on owners of prime Brazilian farmland to divert their resourcesfrom other crops, such as oranges, in favour of sugar.Brazil is the world's biggest producer of orange juice, shipping both frozen and chilledproduce around the world in specially-refrigerated vessels.But orange groves have to be cultivated for several years before they bear useful fruit - andthey need much more attention than sugar canes.In India, the trend appears to be going the other way.Many farmers moved awgovernment-guaranteed prices for other crops, such as wheat and rice.i 000 d get better,10 Aug19 Aug28 Aug

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11:19Assessment- Sugar-rush-for-hy...Tuer costs.Production b0ostIf world sugar prices remain high, farmers are bound to plant more canes in future, in thehope of cashing in on the boom.Price of raw sugar 2009(cents per pound)2624222018161410 unMonthsSOURCE: ICEThere is already pressure on owners of prime Brazilian farmland to divert their resourcesfrom other crops, such as oranges, in favour of sugar.Brazil is the world's biggest producer of orange juice, shipping both frozen and chilledproduce around the world in specially-refrigerated vessels.But orange groves have to be cultivated for several years before they bear useful fruit - andthey need much more attention than sugar canes.In India, the trend appears to be going the other way.Many farmers moved away from sugar-cane in 2008 because they could get better,government-guaranteed prices for other crops, such as wheat and rice.For questions 4-6 you need to write a short paragraph explaining what has occurred andillustrate it with a supply diagram. It will be 8 marks for Ouestions1.) What is meant by supply?2.) What is the difference between a movement along the supply curve and a shift onthe supply curve? (-3.) List 5 examples of a shift on the supply curve4.) What has happened to the supply of Indian sugar this year?.5.) What has happened to the supply f Brrilian sugar as a result of the growingdemand for ethanol to fuel cars? -6.) What does the representative of Archer Consulting predict w&#34; happen to the supplyof ethanol as a result of the Indian demand for sugar? (21 Jul30 Jul10 Aug19 Aug28 Aug 11:19Assessment- Sugar-rush-for-hy...Sugar rush for hyperactive BricsBy Robert Plummer, Business reporter, BBC News, 2/9/09The price of raw sugar is hitting highs not seen for nearly three decades - and the surgeis having a sweet-and-sour effecet on two of the burgeoning Brie economies.Sugar futures reached more than 24 cents a pound this week, the dearest they have beensince February 1981.That makes it a valuable earmer for the Centre-South region of Brazil, the largest sugar-canegrowing area in the world.At the same time, Brazil's position is strengthened by a collapse in production in India, theworld's number two sugar producer.The weakest monsoon rains in the Asian subcontinent for many years have led towidespread drought, hitting crops hard.However, India remains the top consumer of sugar and is relying on Brazilian imports tomake up the shortfall.Up to one million tonnes of Brazilian sugar have been bought by India in recent weeks,according to traders' estimates - and producers are betting that prices may climb as high as30 cents a pound before the current run peaks.&#34;There's still room for a further increase in prices if Indian demand remains strong,&#34; saysPlinio Mario Nastari of Brazil's Datagro consultancy.Food or fuel?All splendid news for Brazilian sugar plantation owners, you might think. But whereas Indiahas had a shortage of rainfall, Brazil's cane crops have been waterlogged by heavier-than-expected downpours.Sugar-cane needs dry weather to ripen in order to maximise its sucrose content, but northernSao Paulo state, one of the key areas of cultivation, has had its heaviest August rainfall inусаrs.That means more customers chasing less of the sweet stuff - and those customers includenot only people with a sweet tooth, but also the majority of Brazil's motorists.In recent years, more and more Brazilian sucrose has been turned into ethanol rather thansugar, as the country's roads have seen a huge increase in the number of &#34;flex-fuel&#34; vehiclesthat run on a mixture of petrol and alcohol.Rise, fall and rise of Brazil's biofuelMore than 90% of new cars in Brazil are adapted to accept ethanol as fuel, thanks to a state-run biofuel programme that began during the country's years of military rule as a way ofreducing its dependence on oil imports.So far, the cost of alcohol at the filling station has not reflected the 80% rise in raw sugarprices since the start of this year.However, pump prices have started to creep up in recent weeks, and analysts expect them torocket after the end of the sugar-cane harvest, which lasts from April to November.&#34;India is demanding sugar, which is priced 40% above cost, while alcohol is being soldbelow cost,&#34; says Amaldo Luiz Correa of Archer Consulting in Sao Paulo.For that reason, he says, factories will switch production from ethanol to sugar, pushing upfuel costs.Production boostIf world sugar prices remain high, farmers are bound to plant more canes in future, in thehope of cashing in on the boom.Price ot raw sugar 2009(cents per pound)26242220181614.MonthsSOURCE: ICEThere is already pressure on owners of prime Brazilian farmland to divert their resourcesfrom other crops, such as oranges, in favour of sugar.Brazil is the world's biggest producer of orange juice, shipping both frozen and chilledproduce around the world in specially-refrigerated vessels.But orange groves have to be cultivated for several years before they bear useful fruit - andthey need much more attention than sugar canes.In India, the trend appears to be going the other way.Many farmers moved awgovernment-guaranteed prices for other crops, such as wheat and rice.i 000 d get better,10 Aug19 Aug28 Aug

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