Segunda-feira, Dezembro 11, 2006

"WHY DOESN'T BRAZIL MAKE ETHANOL FROM CORN?", WONDERS NATURE MAGAZINE.

Ethablog, by Henrique Oliveira.

BioPact reports that Nature magazine now joins the raft of international media who have decided to take a second look at Brazil’s ethanol program to check out why they don’t use corn.

As it turns out, Brazilians don’t use corn because they use sugarcane instead. They would certainly use corn for fuel production (Brazil can plant almost any crop it wants, thanks to very favorable geological and climate conditions), if corn had a higher return on energy invested than does sugarcane. But, alas, sugarcane is vastly more efficient than corn.

It didn’t take the PhDs at Nature long to discover what one humble Michigan MBA has been advocating all along on this blog. Some excerpts:

“(Sugarcane yields) an eight-fold return (on energy invested). This is a lot better than ethanol-makers in the United States manage.”
“Cane is a far more prolific plant than corn, from which the United States makes almost all its ethanol.”
“Sugarcane ethanol is also currently the cheapest ethanol to produce in the world. A liter costs about 25 cents to make. The commodity price for anhydrous ethanol (the kind mixed into gasohol) is about 27 cents.”
"(...) There are environmental worries that go along with the ethanol industry too: as well as fertilizer and fuel use, there are also pesticides and pollutants such as liquid waste and smoke from burning fields to take into account. This result, though, is disputed — and the industry seems to be getting greener as it goes hunting for efficiency gains.”
“Field burning, which by scorching the cane makes it easier to harvest with machetes, is decreasing both as a result of legislation and the increased use of mechanized harvesters.”
“Perhaps the biggest environmental worry is that expanding ethanol production will lay waste to natural forests in its path, reducing biodiversity and releasing stored up carbon.”

Read BioPact’s review of the article here.

CARGILL, LARGEST PRIVATE CORPORATION IN U.S., ACQUIRES CEVASA IN BRAZIL.

Via Ethablog.

In June 06, Cargill, the world's largest privately-owned company and one of the biggest agribusiness corporations in the world, put out a press release announcing its acquisition of Cevasa, “the only mill in the region of Ribeirao Preto with the capacity to expand production economically”.

With a 63% stake in Cevasa, Cargill is now in a joint venture with Canagril, the local association of sugarcane growers.

According to wetfeet.com, which profiles many of the United States’ largest companies, Cargill, founded in 1865, is the U.S.’s fourth-largest food company. It trades in grain, cotton, sugar, and, now, ethanol. It is also involved in financial trading and futures brokering.

Cargill maintains strategic partnerships with, among others, Ag Partners, Renessen, Saskferco, and Midwest Lysine. Its subsidiaries include Cargill-Alliant, Cargill Dow Polymers, Excel, Honeysuckle White, Diamond Sugar, and Asset Investment and Finance.

Cargill operates in 59 countries. In 2003, it announced plans to focus on renewable resources and develop a variety of chemicals, among other industrial products.

By allying itself with an association of sugarcane growers to cinch the Cevasa deal, Cargill has shown, once again, that it understands where the bottleneck in the whole supply chain lies: in the production of sugarcane.

By effectively outsourcing sugarcane production, Cargill also outsourced the bulk of its environmental and labor concerns – two issues that have plagued the Brazilian sugar and ethanol industry.


After producing the ethanol in Brazil, Cargill exports it, in its hydrous form, to its subsidiary in El Salvador, in Central America. The ethanol is then dehydrated. Cargill exports the final product to the U.S. under the Caribbean Basin Initiative, avoiding the 54-cent per gallon tariff on foreign ethanol, much to the chagrin of Cargill's corn partners in the Midwest. H.O.

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Cargill Invests in Sugar & Ethanol Mill in Brazil

SAO PAULO – Maubisa and Cargill Agricola S.A. today announced the conclusion of negotiations for Cargill to take a 63% stake in Cevasa - Central Energetica Vale do Sapucai Ltda, making it effectively a joint venture between Canagril - the associated growers - and Cargill.

According to Maurílio Biagi, president of Maubisa, the deal with Cargill fulfills a personal desire to unite three positive factors in one transaction: enable Cargill to enter the sugar and ethanol production segment in Brazil by acquiring the only mill in the region of Ribeirão Preto with the capacity to expand production economically; provide an opportunity to his agricultural partners to realize their wish to expand sugarcane planting and production; and finally enable Maubisa to look for new projects in this segment, in addition to consolidating its position in the eight projects currently underway.


Biagi, who has always believed in the sector’s promising future, points out that Cevasa, which has been consolidating its position since its first crop in 1999, during the sector’s biggest crisis when ethanol was sold for R$0.14 per liter, has tripled its production and is highly profitable, showing that, based on the average of the last eight years, there is no disadvantage in not producing sugar, much to the contrary.

This decision is also opportune for Cargill as part of its global strategy for renewable energy sources. “Cargill has analyzed the important, growing sugar and alcohol industry in Brazil for some time, and becoming more active is logical step for us to expand our sugar and ethanol business and participate in the growth of this promising sector,” said Sergio Barroso, president of Cargill in Brazil. Barroso further mentioned the high degree of competitiveness reached by the Brazilian sugar cane industry through its technological, industrial and agricultural expertise.

No further details of the transaction were revealed.

About Cevasa

The mill began operations in 1999, and has an annual sugarcane processing capacity of about 1.4 million tons of sugarcane, representing about 125 million liters of ethanol. It is located near the town of Patrocinia Paulista, Sao Paulo.

About Cargill

Cargill is an international provider of food, agricultural and risk management products and services. With 142,000 employees in 61 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.

Present in Brazil for over 40 years, Cargill Agricola S.A., has the profile of a diversified company. Its roots are tied to the agribusiness sector, and it is also one of the country’s most important good industries. Headquartered in São Paulo/SP, the company has industrial units and offices in about 180 Brazilian towns, with about 22,000 employees.

About Canagril

Canagril - Cana Agricola Ltda. holds 37.12% of Cevasa's capital stock, and its strategic partners in this industrial unit are the rural producers who guarantee its supply of quality raw material. For Canagril, this partnership with Cargill is important because Cargill has a good economic structure and follows a serious and competitive professional policy in search of results. With this partnership between Canagril and Cargill, Cevasa will become more competitive and will increase its production capacity. All the region around Patrocinio Paulista will benefit from this new strategic partnership.

Brasil pode perder a liderança na produção de etanol.

Setorial News, em 11/12/2006.

O diretor científico da Fundação de Amparo à Pesquisa do Estado de São Paulo (Fapesp), Carlos Henrique Brito Cruz Brito Cruz, alertou, nesta quarta-feira, que o Brasil corre o risco de perder a liderança na tecnologia da produção do etanol e da geração de energia a partir de biomassa.

Brito Cruz destacou, em palestra no I Seminário Inovação e Empresa, promovido pela Cámara Oficial Española de Comercio en Brasil, que o Brasil não evolui nas pesquisas no mesmo ritmo dos Estados Unidos, Japão e China que já avançam no desenvolvimento da hidrólise enzimática- sistema que em princípio permite extrair da biomassa não só combustíveis líquidos, como também substitutos aos derivados de petróleo, como solventes, plásticos biodegradáveis, corantes, defensivos agrícolas etc.

As oportunidades no campo da biomassa e o aumento da concorrência no exterior estão levando as universidades a buscar parceiros industriais na área de pesquisa e desenvolvimento. "Queremos que a pesquisa ajude a aumentar a competitividade deste setor em cinco anos", ressaltou o diretor da Fapesp.

Açúcar e álcool alcançam carne na exportação.

Valor Econômico, em 10/12/2006.

Pela primeira vez na história dos agronegócios do país, as exportações do complexo sucroalcooleiro devem empatar com as vendas externas de carnes, prevê a Confederação da Agricultura e Pecuária do Brasil (CNA). Os embarques de açúcar e álcool devem somar US$ 8,5 bilhões em 2006. Até outubro, as vendas somaram US$ 6,2 bilhões, com aumento de 59% nas exportações de açúcar e de 113% nos embarques de álcool.

"O movimento pode ser explicado pela forte elevação nas importações dos Estados Unidos e a vitória do Brasil contra a União Européia no painel da OMC [Organização Mundial de Comércio], que reduziu a produção e as vendas do bloco", disse o assessor técnico da CNA, Antonio Donizeti Beraldo.

Ele considera possível que as vendas de açúcar e álcool lidere as exportações do agronegócio em 2007, ultrapassando até mesmo o complexo soja. Mas a recente reação dos preços do grão no exterior pode frustrar essa previsão.

A CNA estima exportações de US$ 48 bilhões para o agronegócio em 2006. Se confirmadas as previsões, haverá crescimento de 10% no ano, abaixo dos 11,75% registrados em 2005. O ministro da Agricultura, Luís Carlos Guedes Pinto, foi mais conservador ao estimar vendas de US$ 46 bilhões no ano. O saldo da balança deve somar US$ 41,5 bilhões, 8% superior a 2005. O desempenho também deve ser inferior à expansão de 12,5% apurada no ano passado.

As exportações totais do agronegócio cresceram 13% de janeiro a outubro, comparado a igual intervalo de 2005. Beraldo ressalta que o desempenho foi pior que as exportações totais brasileiras, que cresceram 17% no ano. A participação do setor na balança caiu de 37,5% para 36%. Já o superávit da balança do agronegócio cresceu mais até outubro - 11% ante 4,4% do saldo total - e já responde por 94% do superávit gerado pelo comércio exterior brasileiro.