GCHERA Consecana: A sucess Partnership Experience in the Brazilian Sugar and Ethanol Sector Mirian Rumenos Piedade Bacchi Geraldo SantAna de Camargo Barros.

GCHERAGCHERAConsecana: A sucess Partnership Consecana: A sucess Partnership

Experience in the Brazilian Sugar Experience in the Brazilian Sugar and Ethanol Sectorand Ethanol Sector

Mirian Rumenos Piedade Bacchi

Geraldo Sant’Ana de Camargo Barros

Raul Machado Neto

USP/ESALQ

FRANCE 27 – 29/JuneFRANCE 27 – 29/June

2011 2011

BUILDING TRUST BUILDING TRUST

and and

RELIABILITYRELIABILITY

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

BRABRAZZIL IS NOT ONLY ...IL IS NOT ONLY ...

THE FIFTH LARGEST COUNTRY IN THE WORLDTHE FIFTH LARGEST COUNTRY IN THE WORLD3.3 X 103.3 X 1066 square milles square milles

BRAZIL COVERS 47% OF SOUTH AMERICABRAZIL COVERS 47% OF SOUTH AMERICA

FEDERATION WITHFEDERATION WITH 26 STATES 26 STATES , , 5 REGIONS 5 REGIONS BRASILIA IS THE NATIONAL CAPITALBRASILIA IS THE NATIONAL CAPITAL

POPULATIONPOPULATION : : 191 MILLION 191 MILLION

AGRICULTURE IN BRAZILAGRICULTURE IN BRAZIL

Annual crops: 36%Annual crops: 36% Permanent crops : 12%Permanent crops : 12% Natural pasture: 15%Natural pasture: 15% Forage crops: 13%Forage crops: 13% Natural forests: 15%Natural forests: 15% Cultivated forests: 15%Cultivated forests: 15%

AVAILABLE AREA FOR AGRICULTURE: 550 million hectaresAVAILABLE AREA FOR AGRICULTURE: 550 million hectares

CONTRIBUTION OF THE AGRIBUSINESS TO THE GDP: 23% CONTRIBUTION OF THE AGRIBUSINESS TO THE GDP: 23%

AGRICULTURE IN BRAZILAGRICULTURE IN BRAZIL

THE TEN MOST IMPORTANT CROPS:THE TEN MOST IMPORTANT CROPS:

Soybean, Sugarcane, Maize, Coffee, Rice, CassavaSoybean, Sugarcane, Maize, Coffee, Rice, CassavaField Bean, Cotton, Citrus, TomatoesField Bean, Cotton, Citrus, Tomatoes

Country is one of the 10 largest world producersCountry is one of the 10 largest world producers

Except for cotton and rice (sixth and tenth), those Except for cotton and rice (sixth and tenth), those crops holds one of the first three positions among crops holds one of the first three positions among major world producersmajor world producers

19971997 3.3%/year3.3%/year 20072007

AGRICULTURALAGRICULTURAL PRODUCTIONPRODUCTION

Gasques, Bastos e Bacchi, Ipea 2008Gasques, Bastos e Bacchi, Ipea 2008

AGRICULTURE IN BRAZILAGRICULTURE IN BRAZIL

CROP PRODUCTIVITY HAS INCREASED OVERTIMECROP PRODUCTIVITY HAS INCREASED OVERTIME

Research, Investments in transportation Research, Investments in transportation

infrastructure, Enhance and availability of infrastructure, Enhance and availability of

modern inputs (SEEDS)modern inputs (SEEDS)

MAIN REASONSMAIN REASONS

Choosing the TOPICChoosing the TOPIC

Consecana: A sucess Partnership Consecana: A sucess Partnership Experience in the Brazilian Sugar Experience in the Brazilian Sugar

and Ethanol Sector and Ethanol Sector

Geraldo Sant’Ana de

Camargo Barros

Mirian Rumenos

Piedade Bacchi

Importance of the Importance of the

sugarcane activity in sugarcane activity in

BrazilBrazil

#Brazil is the major sugarcane producer in #Brazil is the major sugarcane producer in

the worldthe world

#Center-South region accounts for 90%, #Center-South region accounts for 90%,

with the production of 557 million tons with the production of 557 million tons

and more than 50% allocated to ethanoland more than 50% allocated to ethanol

#Sugarcane area used to produce sugar #Sugarcane area used to produce sugar

and ethanol in 2010/2011 – 1.5% country and ethanol in 2010/2011 – 1.5% country

cultivatable areacultivatable area

#sugar production – 33.5 million tons#sugar production – 33.5 million tons

#anhydrous ethanol – 7.4 million m#anhydrous ethanol – 7.4 million m33

#hydrous ethanol – 17.9 million m#hydrous ethanol – 17.9 million m33

FLEX-FUEL CARSFLEX-FUEL CARS

first first 100% 100% ethanol carsethanol cars

produced in the late 70produced in the late 70

TODAYTODAY 42% of the Brazilian 42% of the Brazilian

vehicles fleet is vehicles fleet is FLEX-FLEX-

FUELFUEL

SUTAINABILITY ASPECTSSUTAINABILITY ASPECTS

#ethanol from sugarcane is considered by #ethanol from sugarcane is considered by

EPA (US Environmental Protection Agency)EPA (US Environmental Protection Agency)

ADVANCED FUEL 61% COADVANCED FUEL 61% CO22

#chemical industry#chemical industry

#biodegradable plastic#biodegradable plastic

PLANT BOTTLEPLANT BOTTLE

Social AspectsSocial Aspects# 1,283,258 formal jobs # 1,283,258 formal jobs (RAIS - Relação Anual de (RAIS - Relação Anual de

Informações Sociais)Informações Sociais)

# Agribusiness GDP - 10% in 2009 # Agribusiness GDP - 10% in 2009

# Brazilian GDP - 2.3% # Brazilian GDP - 2.3%

CEPEA 2010CEPEA 2010