This document discusses an integrated sugarcane and livestock production model in Brazil. It finds that the most important integration is with livestock production on pastures. An urgent and large-scale integration is needed that adapts to different livestock systems and will not be adopted under regular expansion patterns. The integration would involve using sugarcane mill residues to produce complete rations for cattle at the mill sites. This would create an economic incentive for cattle production to remain integrated with crops and prevent its migration. The integration is found to potentially increase food production, reduce greenhouse gas emissions, and promote regional development by re-investing profits locally.

1. gerd sparovek
gerd@usp.br
Umbrella Project: Partners:
Agricultural Land Use and Expansion Model – Brazil, Brazilian Ministry of Agrarian Development
ICONE – Ins<tute fro Interna<onal Trade Nego<a<ons
WWF – Brazil
AgLUE‐BR Chalmers University of Technology (Göteborg, Sweden)
Sugarcane integra?on to other agricultural ac?vi?es

2. What do we know?
 close to the mills!
Sugarcane is cul<vated

5. What do we know?
The precise loca<on of the future + 5 to 10 years mills!
Numbers:
# 370 mills (2007)
2007/08:
6.2 x 106 ha
483 x 106 Ton sugarcane
60% ethanol 40% sugar
22 x 109 L ethanol (20% export)
30 x 106 Ton sugar

6. What do we know?
The impacts of the last sugarcane expansion season (1996‐2006)

7. National Agricultural Census 96 and 06
Agricultural Production (Municipal) 96 to 07
Proxy variables for:
Environment (forests)
Food production (other crops)
Development (Municipal GDP)
LUCC (extensive beef and cattle production)
Expansion 1996‐2006 91% of the analyzed expansion
4.8 to 6.1 x 106 ha (1.3 x 106 ha)

8. Food proxy
Other crops
PEA-AM
CEA
PEA
ScEx ScNoEx
Other crops area 20 19 PEA-NoAM
% municipal area
Other crops increase 2 2 % year -1
PEA-AM
Other crops area 9 11 CEA
% municipal area
Other crops increase 11 8 % year-1
PEA-NoAM
Other crops area 4 10 % municipal area
Other crops increase 2 2 % year-1

9. Extensive Land Use proxy
Pastures and Cattle
PEA-AM
CEA
PEA
ScEx ScNoEx
Pasture area 39 52 PEA-NoAM
% municipal area
Pasture dif. (2006-1996) -12 -9 %
Cattle density 54 73 head km-2 of mun.
Cattle head increase -2 0 % year-1
CEA
PEA
Pasture area 34 37 % municipal area
Pasture dif. (2006-1996) 3 1 %
Cattle density 23 25 head km-2 of mun.
Cattle head increase 2 3 % year-1

10. What do we know?
The last season (1996‐2006) is spa<ally coincident with current expansion

11. What do we know?
 on pastures.
Cane will expand & interact
Cane

12. Pasture
New mills

13. What do we conclude?
The most important integra<on system is with livestock produc<on!
and that it….
is urgent……
has to be large scale…..
has to adapt to different livestock produc?on systems…..
will not be adopted under regular expansion paXerns….

14. Integra<on: fuel & food & local development
Polos de produção de energia & alimento & cidadania
Community Hubs for Energy and Food (CHEF)
Bioenergy and food produc?on for local
development in Brazil: Inputs for policy‐making

15. Integrated scenario
Mills are a poten?al low cost feed produc?on facili?es
Complete ra?on for ruminants is an old technology (back to the 1980s) widely
used before co‐genera?on become an op?on

16. Complete ra<o for milk or beef Complete ra<on for maintanance
Hydrolyzed bagasse * Hydrolyzed bagasse *
Bagasse Bagasse
Yeast Yeast
Residual sugars (Molasse) Stillage (vinasse)
+ Filter cake
Grain +
Minerals, vitamins Minerals, vitamins
For 15L milk a day
or Winter maintenance (beef or milk)
Beef ca`le fe`ering
* Produc?on uses mill’s process steam (bioenergy)

17. 20 % 20 %
Forest Forest
Ra?on
30%
Pasture
80%
Pasture
50%
Other land use
Food
Soy/biodiesel
Cane
Original: extensive Integrated
Mill +
Feed +
Biodiesel

18. Feasibility model: Mill
1 million tons cane per year on 15,000 ha
Ra?on produc?on capacity: 40,000 ton
20,000 tons for beef caXle termina?on – 7,500 animals for 120 days + 15,000 tons for milk caws – 1,500 animals for 365 days
+ 5,000 tons milk caws maintenance – 1,750 animals for 90 days
Investment (U$): 285,000
Supplies + Maintenance (U$/year): 1,900,000
Ra<on sell value (U$/ton): 62
25 % profit margin (U$/year): 495,000
Comparison of bagasse sell value (U$/ton):
Assumed in the ra?o calcula?on: 21
Current value in co‐genera<on*: 8
Best scenario for co‐genera?on*: 21
* Without investment cost and transmission lines
sparovek et al., 2009 Petrobras (RJ) @ 180809

19. Farmers perspec?ve: before and aier the integra<on
Descrip<on Profit Area
Type Before Aier Integrated/Cane
Technology Size
U$/ha year ha/ha
Extensive low Large 40 100 2.95
Stable high Large 130 220 2.01
Diverse Medium/high Medium 100 170 1.19
Special low Small 240 370 1.24
Strategic high Small 1050 1170 0.57
The two marked types are the most comum farm systems in the sugarcane expansion region

20. Agriculture vs Animal produc?on paradox
Animal produc<on on pasture (2005)
AU km‐2
Agricultural produc<on value (2005)
R$ km‐2

21. Migra?on of caXle farming!
Animal produc<on on pasture (2003)
AU km‐2

22. What do we get with the integra?on?
For sure:
• Create an economic reason to prevent livestock produc<on to move
• Keep a larger diversity in land‐use
• Don’t interrupt current economic op<ons
• Increase output of food products
• Reduce GHG emissions
• Avoid land property concentra<on
• Re‐invest regionally
We may (producing both, biodiesel and ethanol in integrated system):
• Reduce the costs of integra<on
• Increase even more the output and diversity of food products
• Reduce even more GHG emissions using bagasse to produce Biodiesel
• Amplify the opportuni<es for small‐holders supply oilseed crops
• Intensify oilseed crop produc<on on land marginal for cane (more intense land use)