GCHERA Consecana: A sucess Partnership Experience in the Brazilian Sugar and Ethanol Sector Mirian Rumenos Piedade Bacchi Geraldo SantAna de Camargo Barros Raul Machado Neto USP/ESALQ FRANCE 27 – 29/June 2011

BUILDING TRUST andRELIABILITY

BRAZIL IS NOT ONLY...

THE FIFTH LARGEST COUNTRY IN THE WORLD 3.3 X 10 6 square milles

BRAZIL COVERS 47% OF SOUTH AMERICA FEDERATION WITH 26 STATES, 5 REGIONS FEDERATION WITH 26 STATES, 5 REGIONS BRASILIA IS THE NATIONAL CAPITAL POPULATION : 191 MILLION

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

AGRICULTURE IN BRAZIL THE TEN MOST IMPORTANT CROPS: Soybean, Sugarcane, Maize, Coffee, Rice, Cassava Field Bean, Cotton, Citrus, Tomatoes Country is one of the 10 largest world producers 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 producers major world producers

%/year 2007 AGRICULTURAL PRODUCTION Gasques, Bastos e Bacchi, Ipea 2008

AGRICULTURE IN BRAZIL CROP PRODUCTIVITY HAS INCREASED OVERTIME CROP PRODUCTIVITY HAS INCREASED OVERTIME Research, Investments in transportation infrastructure, Enhance and availability of modern inputs (SEEDS) MAIN REASONS

Choosing the TOPIC

Consecana: A sucess Partnership Experience in the Brazilian Sugar and Ethanol Sector

Geraldo SantAna de Camargo Barros Mirian Rumenos Piedade Bacchi

Importance of the sugarcane activity in Brazil

#Brazil is the major sugarcane producer in the world #Center-South region accounts for 90%, with the production of 557 million tons and more than 50% allocated to ethanol #Sugarcane area used to produce sugar and ethanol in 2010/2011 – 1.5% country cultivatable area

#sugar production – 33.5 million tons #anhydrous ethanol – 7.4 million m 3 #hydrous ethanol – 17.9 million m 3 FLEX-FUEL CARS FLEX-FUEL CARS first 100% ethanol cars first 100% ethanol cars produced in the late 70 produced in the late 70

TODAY 42% of the Brazilian vehicles fleet is FLEX-FUEL TODAY 42% of the Brazilian vehicles fleet is FLEX-FUEL

SUTAINABILITY ASPECTS SUTAINABILITY ASPECTS #ethanol from sugarcane is considered by EPA (US Environmental Protection Agency) ADVANCED FUEL 61% CO 2 ADVANCED FUEL 61% CO 2 #chemical industry #biodegradable plastic

PLANT BOTTLE PLANT BOTTLE

Social Aspects # 1,283,258 formal jobs (RAIS - Relação Anual de Informações Sociais) # Agribusiness GDP - 10% in 2009 # Brazilian GDP - 2.3% CEPEA 2010