The actual scenario of the brazilian ethanol-2009-2010 industry
By: Marcelo Dodson firstname.lastname@example.org
Brazilian Ethanol Chronological Facts Brazil was discovered in April 22,1500 In 1532,Martim Afonso de Sousa arrived in Brazil brining sugarcane stems. For more than 200 years, the sugarcane production focused on three majors products 1. Sugar 2. Animal Feedstock 3. Cachaça brandy1530
Brazilian Ethanol Chronological Facts • 5% (E5) blend of ethanol and gasoline was added • During the 2nd World War, the Northeast Region used a 40% (E40) blend.1530 1931 - 1945
Brazilian Ethanol Chronological Facts • The 1973 oil crisis • National Alcohol Program is launched in 1975 (PROALCOOL)1530 1931 - 1945 1973-1975
Brazilian Ethanol Chronological Facts Percentage of cars manufactured with Ethanol Engineering % 90 0 1986 1990s Source: Adapted from Hofstrand (2009)1530 1931 - 1945 1973-1975 1986 1990s
Brazil has approximately 63.48 million hectares (151 million acres) for theexpansion of the sugarcane (Brazil/ Presidencia da Republica, 2009). This regulation considers environmental, economic, and social aspectsto guide both sustainable expansion of sugarcane production and investments inthe biofuel sector ZAE Cana excludes areas with slope bigger than 12%, forest (i.e. Amazonforest and Pantanal Swamp), and other areas.
Ethanol (Billion of liters) Production Consumption Export
2010 GDP: 7.5% 2010 unemployment: 5.3% Gasoline has 22-25% of ethanol FFV sales represent roughly 90% of new vehicle sales by end of year. By the year 2013 more than half of the Brazilian fleet will be FFV At the pump, he end-user can decide between gasoline or Ethanol by multiply the gasoline price by 0.7.
The predominant mode of ethanol transport is road system because its competitiveness on short routes and low load conditions. In general, the plants are located, in agricultural areas away from major transportation routes and, individually, have no scales of production that enable the use and investment in other modes of transport.http://caminhoesracing.blogspot.com/2009/09/treminhao.html
Railroad system In 2008, the Center South region concentrated 68.3% of the national ethanol railroad system and seven from 10 main railroads terminals are destined to receive the fuel. The average railway distance in the region were 900 km (between 500 and 2,300 km), and the annual volume transported is approximately 1.6 million cubic meters (moving between 50 thousand and 400 thousand cubic meters in the main section)http://www.ocoruja.com/index.php/2009/o-brasil-esta-embarcando-nos-trens/
Brazil has approximately 5,700 miles of pipelines for combustive transport
Investment: U.S. $ 1.2 billionExpected costs reduction: 10%Volume: 12 million m3 of ethanol (Transpetro, 2010)
In Brazil, the ethanol marketing is become more concentrated. Seven major groups already dominate 67% of the ethanol sales in Brazil.Foreign control of Brazilian ethanol and sugar companies is now up to 22 percentMills 39 23 9 13Sugar 5.2 4 2.3(million tons )Ethanol 3.9 2.2 3 1.5(billion liters) the largest global the largest Brazilian sugarcane-bagasse- sugar, ethanol and based electric energy bioenergy company generator,
The sugarcane industry is the biggest jobs generator of the Brazilian agriculture sector. • Employees 629 thousand people • The industry will generate others 170 thousand jobs in the following yearsLaws and Agreements • The Brazilian labor law • The Brazilian labor ministry published the regulation 31 • National commitment for the improvement of labor conditions in sugarcane production The result of these actions reduced the child labor in the sugarcane industry in 86% (from 14.7% to 3.3%) of temporary workers and almost to 100% of permanent workers, from 1992 and 2005 (Balsadi, 2007). http://www1.folha.uol.com.br/folha/galeria/imagemdodia/p_20070421_08.shtm