The increase in the value of the yuan since 2004 means that the price of oil, iron ore, copper, agricultural products and all other commodities have gone down by 25% for China-based manufacturing relative to U.S. based manufacturing.
Brazil then sees Africa as a meansof diversifying its export markets in such sectors as food, seeds and agricultural machinery while internationalising production of its major companies such as oil and biofuels giant Petrobras and mining colossus Vale.
Crop prices may have fallen from recent peaks but agricultural nutrients and grains remain strongly priced and in tight supply, which means that the staggering growth of Agrium's second quarter is expected to continue.