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.
=Manganese= has recently been the chief mineral exported on account
of war necessities, 245,000 tons valued at 7 million dollars, in the
first half of 1917, in contrast to 85,000 tons in the same part of
1914. The mines are in Minas, Matto Grosso, Bahia, and elsewhere,
those in Minas being accessible to the port of Rio. In Matto Grosso,
18 miles from Corumbá, there is a deposit called the Urucum, estimated
at 30,000,000 tons of undeveloped ore; one, the Quelez, in Minas of
5,000,000, 30 miles from Rio, and others. The ore averages over 50 per
cent of metallic manganese, with a little iron silicate and phosphorus.
Americans are interested in the works as the metal is valuable in the
iron and steel industry. With better transportation facilities for
these and other deposits, a good future is certain.
=Gold= mining was naturally the first to be developed. Minas has been
the chief producer. Of Minas Geraes the writer Diaz said, “In this
State what does not hide gold contains iron; what does not contain
coal spreads diamonds.” After the discovery of gold in 1693, 80,000
men toiled for a century at placer mining for the King of Portugal.
About $1,000,000,000 has been taken out. The Morro Velho, said to be
the oldest producing mine in the world, is now with the Ouro Preto
worked by British Companies. The first is being worked at the depth
of a mile with no sign of exhaustion. The gross receipts for the year
ending February 28, 1917, were over $4,000,000, the profits $750,000,
from a tonnage crushed of 187,400. The Ouro Preto Company operates
the Passagem Mine five miles from the former capital of that name,
being the first to use a stamp mill in 1819. The average thickness
of the lode was ten feet, now about eight. Gold properties exist in
many States, the most important around three mountain chains, the
Mantiqueira and Espinhaço, which cross Minas and Bahia, running into
Pernambuco; the range between Minas and Bahia, and Goyaz, continuing
into Piauhy and Ceará, west of the São Francisco River; the third
east of the Paraguay and Araguaya Rivers. Those most worked are in the
Espinhaco Range in Minas and Bahia. Dredging has been carried on with
varying success, but some of the companies have been overcapitalized.
An American Company has recently acquired some old concessions of land
in Goyaz, rich in gold and diamonds, where extensive operations are
expected shortly.
=Diamonds.= As for diamonds, since the first stone was discovered in
1721, many precious gems have been produced. During 40 years in that
century $17,500,000 worth were exported. The city, Diamantina, 500
miles from Rio, is the centre of one of the most important fields. Gems
are found in pot-holes, one of which contained 10 pounds of diamonds
and 28 of gold. Others are in clay deposits in rocks of sandstone and
schist. In the River Bagagem near the border of São Paulo, 250 miles
from Diamantina, three great diamonds have been found: the Estrella
do Sul, in 1853, weighing 254 carats uncut, was sold to the Gaekwar
of Baroda for $400,000, the others weighing 117 and 175 carats. Other
fields are in Paraná, Bahia, Goyaz, Matto Grosso, and São Paulo, in
Goyaz on the Garças River, tributary to the Araguaya. Apparently most
of the stones are now smuggled. They are said to be finer than the Cape
diamonds and also to be sold for them. Black diamonds are found, of
great value in the arts, and many precious and semi-precious stones,
such as amethysts, tourmaline, topaz, etc., in various places.
=Copper= exists in several States, but production is slight. A mass
weighing over 2600 pounds was discovered years ago near the city of
Bahia, and there are six well known districts in the State. In Rio
Grande do Sul an extensive property was opened which showed 6.5 per
cent copper and 30 grams gold per ton. Minas will probably rank next to
these States. Promising quantities are near Campos in Rio de Janeiro;
there are also ores in Goyaz, Paraná, Matto Grosso, Parahyba, Ceará,
Rio Grande do Norte and Maranhão; some are hardly accessible. One of
those in Bahia covers nearly 15,000 acres, about 30 miles from the
railway. Belgians and Dutch have operated at Camaquam, Rio Grande do
Sul.
=Iron= in actual mountains occurs in Minas, 12 billion tons of the
highest grade in 52 outcroppings. Deposits have been acquired by
American, British, German, and French interests. The manager of a
British company which owned 90,000 acres said, “One could travel 23
miles one way and 16 another on outcrops of ore, _canga_, or rubble.”
In one deposit 30,000,000 tons are in sight, 60 per cent pure.
American interests, the Itabira Company, have secured deposits which
include the celebrated iron mountain of Itabira do Matto Dentro in the
east near the head of the Doce River. The hematite iron district is
reached from Rio by the Central and the Leopoldina Railways; but this
deposit will be tapped by a prolongation of the Victoria-Minas Railway,
now running along a part of the Doce River. Also a branch will lead to
a terminal 40 miles north of Victoria, Santa Cruz, a small port which
will be developed and equipped with special loading machinery. Here
will be erected a steel plant with an annual capacity of 150,000 tons
of steel products, pig-iron, steel plates, rails, etc. The iron, 326
miles from this port, runs 69 per cent pure; some in the United States
runs 52 per cent. It will be several years before manufacture can
begin. Coal will be imported.
Development of iron properties has been retarded by lack of
transportation and fuel. Wagon roads are unknown. The altitude is
2000-4000 feet and the climate good. The coal is hardly good enough or
in sufficiently large supply. Oil development is uncertain. As there is
water power the use of electricity may be arranged.
Near Ipanema, São Paulo, iron is found. A large deposit has been
located in Paraná three miles from the port of Antonina. Other
deposits in the two States south give good promise. So far charcoal has
been used for a little smelting.
=Coal= mining has been carried on for a long time in a small and
primitive way, but most of the coal used has been imported. The
principal deposits found are in Santa Catharina and Rio Grande do Sul,
others are in Paraná and Pernambuco. In Paraná American interests have
made extensive purchases and expect to develop the property at once.
Rio Grande do Sul has been estimated to have 800,000,000 tons and to be
able to supply 1,000,000 a year.
In Santa Catharina the veins are about ten feet thick; some in Rio
Grande are 4-10 feet, some 13. The property at Xarquedas, operated for
some years, produces 20,000 tons per annum. With greater activity, in
March 1918, 650 tons were produced daily from two shafts, and 1000
or more was expected by the addition of a third. With high volatile
matter, good gas and salable coke are procured for Pelotas. Coal is
found in several river valleys in Santa Catharina. State surveys are
being made, and with improvement in transport by land and water a great
industry may be developed of enormous value in promoting manufactures.
Railway construction has been authorized by the President to aid coal
companies in work, and other concessions have been made. The briquettes
from Santa Catharina coal show hardly less caloric value than those of
the Welsh patent fuel. Much is used by the Lloyd Brasileiro and other
steamship lines including the Japanese; by railways, mills, etc. A
little is exported to Argentina and Uruguay. The Rio Grande Railway is
or was burning coal mixed with wood on its locomotives. The best coal
is 42 per cent combustible, and when pulverized is equal to any other.
Bituminous schist sold at $12.50 a ton was used for gas in São Paulo
during the War. There are great seams 10-12 feet thick in São Paulo
and Rio Grande do Sul. Lignite occurs in Pará, Amazonas, and Minas,
enormous peat beds in various places.
=Monazite= sands exist on the Brazilian coast, probably in larger
quantities than in all the rest of the world. In 1910 Germany imported
$1,000,000 worth. The thorium in the sands, used in the manufacture of
gas mantles, is extracted in Brazilian factories before exportation.
Two per cent of thorium is in the sand, sometimes nearly 6 per cent.
It is found on the coast north of Rio and on some river banks in Rio,
Espirito Santo, Bahia, and Minas.
=Graphite= exists in several States, especially Minas and Bahia in
rather inaccessible locations, but one deposit in Rio is worked, for a
pencil factory in the city of Rio; others in a small way for local use.
=Other Minerals.= Platinum is found in gold bearing quartz and in river
alluvium in Pernambuco, Minas, and Parahyba; nickel in Minas, Santa
Catharina, and Rio Grande do Sul; salt in Rio Grande do Norte, Rio,
and Minas, worked in the last two; much is imported. Other minerals
found in various localities are asbestos, antimony and tin, bismuth,
barium, cinnabar, emery, kaolin; marble, white, rose, onyx, and green;
mica, molybdenite, saltpetre, silver and lead, soapstone and talc, and
wolfram. Among the stones garnets, opals, pearls, rubies, sapphires,
emeralds, topaz, and tourmalines are found in more or less profusion as
well as rock crystal, useful to opticians. Minas contains almost every
variety of ore and gem, which with its good climate and fertile soil
have made it the best populated State, though without a large city.
=Petroleum= has been discovered in a number of States, among them
São Paulo, Minas, Alagôas, Pernambuco, Bahia, and Sergipe; some of
excellent quality in Bahia; but whether in quantities for large
exploitation is uncertain until further investigation and work
are carried on. Some geologists believe that prospects are highly
favorable. Oil of fine quality is recently reported at Piracicaba, São
Paulo, but as the petroleum is generally in schist rock its extraction
would be expensive. Recent advices state that Brazil has 35 oil fields
in four States with an area of 10,000 square miles; in the entire
country 75,000 square miles with an estimated producing capacity within
ten years of 500 to 600 million barrels.
INVESTMENTS
In view of the varied resources of Brazil, to enumerate the
possibilities for investors would be difficult. There is hardly a line
of industry which cannot there be carried on successfully. That of
coffee growing is so well developed as to be somewhat overcrowded, but
in almost any other line there is a field for the investor. Whether
it be mining of gold or diamonds, of coal, iron, or manganese, be it
agriculture, stock raising, the lumber industry, or manufacturing,
the harnessing of the waterfalls to produce hydro-electric power, the
construction of public works, the field for the capitalist, large
or small, is of infinite variety and excellent promise. The present
Government is planning a broad and active development of the electric
power available from its great and numerous water-falls.