Santa Catharina is a cereal State, but does not today produce notable quantities; São Paulo, the high interior of Rio de Janeiro, and the hills of Minas, are all suitable; fine wheat, barley and oats are often seen in the vicinity of European colonies. But Brazilian production is not yet within measurable distance of coping with internal demands, and as a result wheat, with wheat-flour, accounts for one-fifth of Brazil’s total import values. The bulk of the grain imported comes from the River Plate.

Linked with the agricultural production of cereals is the flour-milling industry, which dates from the time when wheat entered Brazil free of duty while wheat-flour paid thirty reis a kilo: this was the condition of the tariff until December, 1899, by which time two large mills had been established in Rio de Janeiro. In January of the following year imported wheat was taxed for the first time, ten reis a kilo, while the duty on flour was reduced to twenty-five reis; national milling profits suffered correspondingly.

In 1906 other alterations were made in the tariff as regards flour from the United States, in addition to certain manufactured articles; it was suggested to Brazil that the United States was a good customer for Paulista coffee and Amazonian rubber, and that she expected “most favoured nation” treatment in return: a tax of three American cents per kilo against coffee was indicated as a short way with objectors. Brazil yielded, giving the United States a twenty per cent reduction on flour import duties, as well as for condensed milk, manufactures of rubber, clocks, dyes, varnishes, typewriters, ice-boxes, pianos, scales and wind-mills. Four years later the preferential tariff was extended to dried fruit, cement, school and office furniture, and in 1911 the rebate on flour entries was changed to thirty per cent.

As a result American sales of the goods indicated have increased very largely, although sales of rubber and coffee have remained, on Brazil’s part, about the same for the last seven or eight years; her more markedly larger shipments to North America are cacao and hides. But American flour imports into Brazil have increased from a little over twenty-four thousand tons in 1906 to nearly sixty thousand tons in 1920, with rises in other articles equally pleasant for the northern manufacturer—cement sales, for instance, increased from one hundred and twenty tons in 1908 to over 76,000 tons in 1920; but in 1921 Germany, selling 30% below her rivals, captured this trade. Reduction of taxes on American flour is actively opposed from two points; the first is the group of flour mills operating in the country, and the second in the sister republic of Argentina who also has flour to sell.

The flour mills in Brazil of commercial importance are eleven in number: the Moinho Fluminense and the Rio de Janeiro Flour Mills, in the city of Rio; Moinho Santa Cruz, across the bay in Nictheroy; Grandes Moinhos Gambas and Moinho Matarazzo, in São Paulo city; Moinho Santista, in Santos; there are three modern mills in Rio Grande State, at Pelotas, Porto Alegre, and Rio Grande City; Paraná has two, at Paranaguá and Antonia.[[14]]

The great cereal of Brazil is that wonderful plant developed by the aborigines of the Americas, maize: it is commonly known as milho in Brazil. Only recently has the wild plant, mother of all the different kinds of maize in the world, been identified—a proof of the long culture which brought it to the perfection which the first European conquerors encountered; yet such was the hardihood of this cereal that thirty years after the Conquest it had spread all over the warm parts of Europe and was thriving in Africa and Asia.

It is, with mandioca, the great food of all South and Central America and Mexico, grows under almost any conditions, apparently, and while the seed is seldom carefully selected, strongly marked varieties of prolific habit are found in Brazil, the red, white and yellow all yielding well. It is found in patches outside every little hut, and in enormous fields in Central Brazil. In spite of the large importation of wheat nowadays to satisfy the more luxurious tastes of the cities, Brazil could not live without maize.

Rye is grown by the Russians of the southern colonies, and the south also produces a limited quantity of oats and barley.

FIBRES

Among the fibres of Brazil which are offered extensive markets is the wonderful paina, known in European markets as kapok, which is thirty-four times lighter than water and fourteen times lighter than cork. Produced chiefly in the Orient, its qualities were many years ago appreciated by German manufacturers who were until recently the largest purchasers of the fibre, using it for life-belts, mattresses, etc. Today an unsatisfied demand for kapok comes from the Société Industrielle et Commerciale du Kapok of Paris and London, which is said to expect enormous calls after the close of the war, when rehabilitated Belgium and northern France will need pillows, mattresses, coverlets, and quantities of other things with the qualities of lightness, warmth, elasticity and impermeability possessed by this renowned fibre. At present world supplies come from Java (best fibre, cleanest, best packed), British India, an inferior grade, as is also that of Central Africa and Senegal; a few years ago, at the suggestion of Germans interested in Venezuelan railways, the kapok tree was introduced there; but when the cotton was sent to Europe it was rejected on account of its condition “the greater part of the bales containing stones, refuse, etc., which sometimes amounted to thirty per cent of the total weight; thus, in spite of the fine quality of Venezuelan kapok, French importers were obliged to cease purchases,”—a lesson for careless exporters.