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By: Marcelo Dodson
   marcelododson@gmail.com
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
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
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
Brazilian’s Sugar Cane Production System
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
Source: Di Ciero (2010)
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.
Sugar mills                                        Independent distilleries
15                                                157




                   248 Mills with distillery plants




                                                                               Source: MAPA (2010)
Distribution per region
(336.276,100 tons)

          53,8%          46,2%


27.67 billion Liters             38,675,500 Tons
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 billion
Expected costs reduction: 10%
Volume: 12 million m3 of ethanol
                          (Transpetro, 2010)
Source: UDOP (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 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,
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
BRAZIL   U.S.A
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
BRAZIL   U.S.A




           (Hofstrand, 2009)
marcelododson@gmail.com

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The actual scenario of the brazilian ethanol industry-2009-2010

  • 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
  • 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.
  • 11.
  • 12. Sugar mills Independent distilleries 15 157 248 Mills with distillery plants Source: MAPA (2010)
  • 14. (336.276,100 tons) 53,8% 46,2% 27.67 billion Liters 38,675,500 Tons
  • 15.
  • 16.
  • 17.
  • 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.
  • 20.
  • 21.
  • 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)
  • 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)
  • 32.