New economic profile

Translation from Diário de Cuiabá
Reporter: MARCONDES MACIEL
6 July 08

With investments of R$ 6.5 billion in recent years, 600 new companies and 200,000 jobs created in various regions of the state, Mato Grosso is preparing to change its economic profile in the coming years. In some regions the changes are already happening and what is perceived is that increasingly, Mato Grosso is headed into the process of verticalization and sees other investments in the order of R$ 5 billion in coming over the next five years.

The verticalization is the aggregate value of the raw material for the state.  Instead of selling the grain, it is transformed into feed, which supports the commercialization of beef, pork and poultry meats.

"This new economic profile will be sustained mainly through industrialization of the agricultural sector, which will involve not only the development of finished products, but also the process of logistics and generation of wealth and jobs, adding value to farms and generating tax revenue, parallel services and new businesses in Mato Grosso." says the secretary of Industry, Trade, Mines and Energy, Pedro Nadaf.  He goes on to note that tax incentives have bee responsible for attracting of investments.

According to the Secretary, the government of Mato Grosso is working to solve the problem of logistics, transport and infrastructure in the state.  "The interesting thing is that new investments are not focusing on one region, but distributed in all municipalities," he says. Nadaf noted, however, that "there are regions that have undergone rapid development and the government has to be careful to give support in the area of infrastructure." From north to south, the investments do not stop.

verticalization

One example is the municipality of Lucas do Rio Verde (360 km north of Cuiaba on average), where at least a dozen new large companies are establishing operations. Of the R$ 6.5 billion in investments encouraged by the State at least R$ 1.5 billion was contributed in the municipality of Lucas. Sadia alone is responsible for the injection of R$ 800 million direct and indirect, with the construction of its the first industrial complex. Companies that have received incentives will generate more than 5,000 direct jobs and 15,000 indirect.

Colíder (650 km north of Cuiaba) is another city that has changed its economic profile in terms of new firms receiving tax benefits. In May protocol was signed granting tax incentive to the first milk processing company in Mato Grosso, which will generate 80 direct jobs and involve over three thousand small producers in the municipality.

In addition to these business expansions, which will directly impact on improving the quality of life for thousands of families, Mato Grosso is receiving from other investments such as large scale expansion of Sadia in Campo Verde (135 km south of Cuiaba), which will triple its production of chickens, generating new jobs and wealth for the local economy. The project investment will total R$ 630 million and includes an agri-industrial complex composed of a slaughterhouses, feed factory, incubators and raw material producing farms. Together with projects in Varzea Grande and Lucas do Rio Verde, Sadia has already invested more than R$ 1.5 billion. Sadia is currently the largest, private investor in the State.

Another major investment is the Cervejaria (beer) Petropolis, manufacturer of Crystal, Itaipava, Petra, Lokal and Black Princess beers, which was inaugurated last Friday (4 July 08) in Rondonópolis (210 km south of Cuiaba). Petrópolis has already invested $ 120 million in the plant, which employs over 200 people. During the inauguration, even without revealing figures, the president of the company, Valter Farias, announced that in 15 months work will begin on expansion of the recently inaugurated plant.

According Pedro Nadaf, the Produtivos Locaios Arrangements (APLs) are changing the profile of the sector moveleiro, allowing cities like Alta Floresta, Colíder Sinop and export its products abroad. Nadaf also highlighted the verticalization of the leather tanning sector, where only in recent years, seven companies have made investments in the municipalities of Varzea Grande and Pedra Preta, and other industries that also decided to invest in Sinop and Araputanga, investments totaling U.S. $ 40 million.