International trade, soy, and the process of circulation

[Hinrich Kuhls <kls@xxxxxxxxxxxxxx>]

"Whereas on the one hand the improvement of the means of transportation and
communication brought about by the progress of capitalist production
reduces the time of circulation of particular quantities of commodities,
the same progress and the opportunities created by the development of
transport and communication facilities make it imperative, conversely, to
work for ever more remote markets, in a word -- for the world-market. The
mass of commodities in transit for distant places grows enormously, and
with it therefore grows, both absolutely and relatively, that part of
social capital which remains continually for long periods in the stage of
commodity-capital, within the time of circulation. There is a simultaneous
growth of that portion of social wealth which, instead of serving as direct
means of production, is invested in means of transportation and
communication and in the fixed and circulating capital required for their
operation." (Marx, Capital, vol. II, ch. 14)

An Illustration:

*-*-*-* July 10, 2001

Soy Growers in Brazil Shadow U.S. Farmers

By JENNIFER L. RICH

TACOATIARA, Brazil ? The blazing midday sun dances off the long line of
bright gold barges preparing to disgorge their cargo, Asia-bound soybeans,
at this tiny but up- to-date Amazon River port. The barges, lashed nine
tight, made the uneventful 600-mile journey down the Madeira River from the
heart of Brazil's soybean country in less than 48 hours, cutting almost a
week off the traditional overland route. That translates into a
considerable savings that can be passed along to the beans' buyers.

Meanwhile, 4,000 miles north of here, on the Mississippi River, 15-barge
configurations loaded with Iowa- and Illinois- grown soybeans often wait in
line for hours to pass through a series of creaky 80-year-old locks that
will lower them down to the sea at New Orleans, where they will be
transferred to freighters bound for foreign ports. Each hour of delay costs
American farmers an estimated $500.

In the race to move soybeans to the global marketplace, Brazil, Argentina
and China are gaining and the United States, the longtime champ, is faltering.

As they watch competitors invest heavily to reduce shipping time and costs,
American farmers say that the river that once helped make United States
agriculture the low- price leader is now costing them about $100 million a
year in delays.

Against objections from environmentalists and some economists, a farmers'
group is clamoring for taxpayers to pay at least part of the bill of more
than $1 billion to lengthen and upgrade the locks.

The contentious question of Mississippi River improvements cuts to the
heart of a larger issue: how do third- or fourth-generation American
farmers compete against more agile entrepreneurial rivals like those here
in Brazil, where land is plentiful and cheap, and government regulators are
distant?

[...]

Brazilian soybean producers say that there is room in the international
market for everyone. But with more scrub turned into farmland every day,
their aspirations are looming larger.

"We would be very nervous," Mr. Schnepf of the United States Department of
Agriculture said, "if they can do the same thing with corn."
*-*-*-*

full article at:
http://www.nytimes.com/2001/07/10/business/10SOY.html?pagewanted=print

hk