The Brazilian states: Rio Grande do Sul

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Demark Brazil starts today a new serie of posts…

We want to provide “FREE OF CHARGE” information on the economy and business opportunities in each and every one of the Brazilian states. Perhaps, instead of going to the Economist Intelligence Unit, you can visit Denmark Brazil and get information at the same level(After all we use the same sources :D).

Denmark Brazil’s main goal is to generate more knowledge, create awareness and lastly give you one more tool that will help you through the decision making process when looking for opportunities in a Brazil

So here we go…


Rio Grande do Sul

Rio Grande do Sul is the most meridional state of Brazil. It makes boarders with Uruguay and Argentina. A priviledged location between the two countries that are also part of the Mercosul.

Rio Grande do Sul comprises an area of 282 thousand m2, of which 11 million people live in. Those are descendents of indians,black, portuguese,italian, germans and asians. In the region of the Serra Gauchas,it is very common to hear Brazilians speaking german.

Rio Grande do Sul literacy rate is around 95,5%. It’s capital is called Porto Alegre. The life expectancy in Rio Grande Do Sul’s is around 75 years old.

The state is famous for having a mature and diversified industry, techonological parks, qualified labour, for having the second health and hospital cluster in Brazil. It’s HDI stands for 0,832 and the state prioritizes sustanability and long term projects ( A good thing for Danes to know)


Rio Grande do Sul’s Industry at a glance

furniture Rio grande do sul

  • Rio Grande do Sul has the 3rd largest industrial park of Brazil
  • Rio Grande do Sul is the 1st producer of leather and footwear
  • Rio Grande do Sul is the 1st center for transport and equipment production
  • Rio Grande do Sul is the 1st center for agricultura equipment
  • Rio Grande do Sul is the 2nd center for chemical products
  • Rio Grande do Sul is the 2nd center for Rubber and plastics
  • Rio Grande do Sul is the 2nd center for Metal products
  • Rio Grande do Sul is the 2nd center for furniture
  • Rio Grande do Sul is the 2n center for beverage production
  • Rio Grande do Sul is the 4th center for food manufacture
  • Rio Grande do Sul is the 4th center for Vehicle production

The Department of Development Investment and Promotion alongside the Federal Government of Rio Grande do Sul attribute the following importance to each sector of the economy.

Prioritary Sectors:

Preferential sector:

  • Recycling and Waste Treatment ( Opportunity for Danish Companies)
  • Agricultural Machines and Implements/components
  • Wood, pulp and Furniture

Special Industries

  • Biofuels ( Ethanol and Biodiesel-Opportunity for Danish Companies)
  • Semiconductors
  • Advanced Health Care and Pharma ( Opportunity for Danish Companies)
  • Creative Industries
  • Oil and Gas equipments
  • Petrochemical industry, Rubber and plastic products
  • Softwares
  • Eletro-Electronics,Automation and Telecommunications
  • Footwear and Leather Applications

 The Foreign Trade in Rio Grande do Sul.

According to a study made by FIERGS, the Commerce and Industry Federation of the Estate of Rio Grande do Sul, the Brazilian main exporters are:

  • São Paulo 1st
  • Minas Gerais 2nd
  • Rio de Janeiro 3d
  • Rio Grande do Sul ( 4th place)
  • Paraná 5th
  • Para 6th
  • Espírito Santo 7th
  • Bahia 8th
  • Mato Grosso 9th
  • Santa Catarina 10th

 Rio Grande do Sul’s Main exports/imports break down per countries/economic blocks are:

imports and exports

The Structure of Rio Grande do Sul’s Gross Added Value:

  • Agriculture and Livestock account for 10%
  • Industry: Account for 25%
  • Services: Account for 65%

The Agribusiness comprises all three sectors mentioned above and represents alone, 30% of all Rio Grande Do Sul’s Economy.

The Agribusiness for Rio Grande do Sul corresponds to 12,1% of the national agroindustry and is the 2nd state in participation comhaining only after São Paulo.


What is produced in Rio Grande do Sul then?

  • Fine Wines produced at the Vale dos Vinhedos. Vale Dos vinhedos comprises 3 cities ( Bento Goncalves,Garibaldi and Monte Belo do Sul)
  • Grains ( Rice,Corn,Soybean,etc) in the north of the state
  • Meat and Leathers and other byproducts in the region of the pampas, close to Argentina
  • Pork: Just as a curiosity, Rio Grande do Sul is the largest exporter in Brazil
  • Poultry Raising. Brazil is the largest exporter of the world and Rio Grande do Sul is the third largest producer.
  • Milk and Dairies

sojinha


The production of Rio Grande do Sul in numbers

Soybean- 11,7 Million ton, accounts for 15% of the total national production

Corn-5,8 million tons. Accounts for 10% of the national production

Dairy-4 Billion liters of milk per year. Around 11 million liters per day

Poultry- 1,1 million ton. Accounts for 65% of the national production and 64% of all poultry is exported.

Pork-588.700 Tons. Accounts for 18% of the Total national production

Rice-8,9 Million tons. Accounts for 65% of the total national production

Beef and Cattle- 500.000 tons of processes meat.Accounts for 5,5% of the national production


A Snapshot on the Creative industries in Rio Grande do Sul

In Rio Grande do Sul,aroun 18 thousand companies utilize ideas as its main production input. The national federation of the industries of Rio Grande do Sul, estimates that the creative industries is responsible for 1,9% of all production of the state. This is equivalent to 5,2 Billion BRL per year, something around 12-13 Billion DKK.

In terms of jobs, Rio Grande do Sul leads the Southern regin of Brazil and generates approximately 50 thousand jobs in these industries. The state stays behind São Paulo, Rio de Janeiro and Minas Gerais.

Among the segments of greater detach are Fashion and Design that together account for more than 25% of all jobs within the creative industries. This reflects the force of the shoes industry.

Below a spreadsheet so you can see where the jobs are concentrated within the creative industries in Rio Grande do Sul.

Rio Grande do

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Carlos Monteiro is a Brazilian citizen, graduated in Business Administration by the Catholic University of São Paulo. He lives in Odense, Denmark with his Danish Wife, Cathrine, and their half Danish /Brazilian daughter Ines Marie. You are very welcome to be in contact him at any time.

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