The document provides a chronological overview of key facts and developments related to Brazil's ethanol industry: 1) Brazil's ethanol industry began in the 1500s with the introduction of sugarcane but focused on sugar production until the 1970s oil crisis spurred the launch of the national ethanol program (PROALCOOL) in 1975. 2) In the 1980s, the percentage of cars manufactured with ethanol engines rose to 90%, but declined again in the 1990s. Flex fuel vehicles running on gasohol blends became popular starting in 2003. 3) Brazil is now the world's second largest producer and consumer of ethanol after the US, producing over 26 billion liters annually from sugarcane grown

1. By: Marcelo Dodson
marcelododson@gmail.com

2. 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 brandy
1530

3. 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

4. Brazilian Ethanol Chronological Facts
• The 1973 oil crisis
• National Alcohol Program is launched in
1975 (PROALCOOL)
1530 1931 - 1945 1973-1975

5. 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

6. Brazilian Ethanol Chronological Facts
Percentage of sales of FLEX FUEL vehicles
%
90
0
2003 2010
Source: Adapted from Seelke & Yacobucci (2007)
1530 1931 - 1945 1973-1975 1986 1990s 2003 2009-2010

7. Brazilian’s Sugar Cane Production System

8. Brazil enjoys the fact that it has two distinct harvest periods
1. North-Northeast region
From November to April
2. Center-South
From May to November

9. Source: Di Ciero (2010)

10. Brazil has approximately 63.48 million hectares (151 million acres) for the
expansion of the sugarcane (Brazil/ Presidencia da Republica, 2009).
This regulation considers environmental, economic, and social aspects
to guide both sustainable expansion of sugarcane production and investments in
the biofuel sector
ZAE Cana excludes areas with slope bigger than 12%, forest (i.e. Amazon
forest and Pantanal Swamp), and other areas.

12. Sugar mills Independent distilleries
15 157
248 Mills with distillery plants
Source: MAPA (2010)

13. Distribution per region

14. (336.276,100 tons)
53,8% 46,2%
27.67 billion Liters 38,675,500 Tons

18. Ethanol (Billion of liters) Production
Consumption
Export

19. 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.

22. 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

23. 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/

24. Brazil has approximately 5,700 miles of pipelines for
combustive transport

25. Investment: U.S. $ 1.2 billion
Expected costs reduction: 10%
Volume: 12 million m3 of ethanol
(Transpetro, 2010)

26. Source: UDOP (2010)

27. 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 percent
Mills 39 23 9 13
Sugar 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,

28. 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 years
Laws 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

29. BRAZIL U.S.A

30. BRAZIL U.S.A
Description Mills Ethanol Jobs GDP Fleet
7.5 Billion 61 million
Brazil 453 630,000 26 billion
Gallons vehicles
13 Billion 246
The US 204 400,000 53.3 Billion
Gallons million

31. BRAZIL U.S.A
(Hofstrand, 2009)

33. marcelododson@gmail.com

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