Industrial and commercial South America

by Annie S. Peck

CHAPTER L
BRAZIL: OTHER INDUSTRIES

Cattle Industry

A leading industry of Brazil which, it has been said, may even in São Paulo supersede in importance that of coffee is live stock. Two packing houses now slaughter 300,000 cattle per year, one Brazilian, at Barretos, the other an American, the Continental Products, at Osasco near São Paulo, exporting chiefly to France and Italy. Another American Company has at São Paulo a plant that will handle daily 1500 head of cattle, 1000 hogs, and 2500 sheep. In tributary territory, which would include parts of Matto Grosso and Minas, 2,500,000 cattle are estimated. It is said that the best breeding ground is Matto Grosso, where the cattle run wild as once in Texas, though each rancher has a certain range and his cattle are branded. The Brazil Land and Cattle Company procured 8,000,000 acres in Matto Grosso, Paraná, and Minas, mostly well watered and with good grazing, except in Matto Grosso. Much fencing was done and buildings were erected. Recent increase in prices has improved prospects. This property is now owned by the Continental Products Company, in which the Wilson packers are interested.

Other vast lands are available. From the ranges of Matto Grosso the cattle are driven across to fattening pastures of southwest Minas and northwest São Paulo where the land has been planted to grass, though it is said that a native grass, caipim gordura, grows there all the year round. Argentina’s alfalfa lands make the cost of fattening an animal six months $7.50, while with caipim gordura in Brazil $1.33 covers the expense. Some Brazil grasses are of the highest class while others are good only for goats. On the Araguaya River the grass is 16-17 feet high. The Jaragua is over 3 feet. In Amazonas and Pará cattle are said to flourish but not goats or pigs. Rio Grande near the Uruguay line has fine grazing lands; those in Minas and São Paulo at an elevation of 1200-1400 feet where animals never need shelter are excellent.

Before the packing houses were started jerked beef only was marketed from the herds, hence, as thin cattle were preferred for that purpose, there was no object in improving the grade. Now there is systematic progress. Breeding farms are operated, fine stock has been imported, and in time high grade meat, perhaps equal to the Argentine, will be marketed. Twelve thousand tons were sent to Europe and the United States in six months in 1916, though the first experimental 1¹⁄₂ tons was sent in November, 1914. At the School of Agriculture, Piracicaba, São Paulo, are good imported bulls, and one of native type, the Caracú, with pale buff hide, fitted to be the base of standardized herds. It seems that in some sections, notably Matto Grosso, a cross with the Indian zebu, which has a hump, and its descendants, is best qualified to resist the climate and the insect pests of that region; but in the pastures of Paraná and Rio Grande, Herefords, Durhams, Jerseys, etc., will flourish. The zebu is of large size and its skin is excellent leather, but packers say the hump does not pack well, and the shoulder is thin. Plants now or soon to be in operation south of São Paulo are three: in Rio Grande, one of Swift, one at Pelotas, Brazilian, and one at Sant’ Anna of Armour. The President of Paraná has been extending high roads towards Guarapuava to tap the State of Matto Grosso, and a large drove of cattle has come down. He desires to have an American packing house established in the State and will arrange with a suitable company to make no advance on the export tax for 15 years. Paranaguá, a port which we have already noted, is well served by the Brazilian Lloyd Line and the Funch-Edye from New York. Similar concessions are offered in Santa Catharina, which State has lower export duties; and by the Governor of Rio Grande, who would exempt from all export taxes any foreign company; though a tax of 10 milreis, $3.33, is imposed for every cow slaughtered, to protect the herds from decimation. If all the herds number 30,000,000, 2,500,000 or more might be slaughtered yearly without diminution. Cattle formerly were killed for their hides only, and the export of these is still important; 37,000 tons exported in 1915 were valued at $13,000,000.

Sheep raising seems inappropriate for a tropical climate, but in Rio Grande do Sul development is possible, also on the highlands of São Paulo, Minas, and Matto Grosso. Experiments with Romney Marsh have been successful for both wool and meat. Now there are 11,000,000 sheep, 7,000,000 goats, 18,000,000 hogs, 6,000,000 horses, and 3,000,000 mules and donkeys in the country.

Manufactures

While Brazil may not be called a manufacturing country, she had over 26,000 such plants in 1916; and her statesmen are eager to increase these industries, for which her immense water power gives her unusual advantages. The largest concern in this field has a capital of $8,000,000 and an annual output worth $4,500,000; it employs 2800 hands making sacking, yarn, rope, thread, etc., this in São Paulo. In the textile field, the cotton mills naturally lead with over 200 mills and an investment of $80,000,000. They exist in various States, employing 80,000 persons; one in Pernambuco near the city of Olinda is a sample. The estate of 45 square miles of pasture and woodland borders on the sea, the shore fringed with coconut trees. Machinery and some technical workers were brought from England. All the processes of making fine cloth are there followed; they spin, dye, weave, color, and print. Native dyes are used in part. Of 3500 hands employed 70 per cent are women and children. Over $35,000 a month are paid in wages. Dwellings are rented at low prices or owned by employes; schools, hospital, and dispensary are free. A dairy and a stock farm belong to the estate, brick factories, a bakery, etc. A lumber yard is important. One thousand tons of coal a month are usually consumed, but in war time wood was used. The cotton is bought, $200,000 a month, and as much a year is spent for chemicals, drugs, etc. From 960 looms 1,500,000 metres of cloth 22-26 inches wide are produced a month, from blue denim to fine flowered fabrics; the products are sold in 80 stores owned by the Company in various States. Brazil has 11 flour mills of commercial importance, located in the States of Rio, São Paulo, Paraná, and Rio Grande do Sul, at one time having no tax on wheat, but ten cents a kilo on flour, by means of which the infant industry was started. In 1915, 800,000 barrels of flour were imported from the United States and 600,000 from Argentina, a little from Uruguay; at the same time enough wheat was imported and milled to make 2,750,000 barrels, evidence of the work of the mills. For metal working there are 134 shops for imported iron. Factories exist of almost every kind. Leather goods are produced especially shoes for which there are many factories; hats, clothing and a variety of ordinary articles, such as soap, hosiery, brooms, paper, wagons, etc. Brazil workmen are skilful and the industries are certain to increase.

Mining

The mining industry of Brazil, if not precisely in embryo, for it has been in a very flourishing condition, is now in a state of prospect; on the verge of a great development rather than of active operation, except for a few varieties of metals. At the moment there is little working except in gold, diamonds, monazite, manganese, and coal.