Ministry of Agriculture, Livestock and Food Supply - Embrapa

Supplying lines of credit adequate to the profile of the investment and
working capital needs should also stimulate additional private investments
and even of direct foreign investments to the various links of the ethanol
production and commercial chains.
During the initial implementation phase, regional inducements and
incentives from directly interested state governments, working in accordance
with the guidelines of the federal government, are also very important.
One of the first government steps will be an integrated effort by Embrapa,
Inmet and other partners to draw up a strategic plan for the expansion of
sugarcane plantations and oleaginous species cropping areas that include
the agronomic and agro-climatic aspects, as well as the socio-environmental
components and logistics.
One of the guidelines of the Plan is to promote regional de-concentration
of production and stop the verticalization process, as seen with sugarcane in
the State of São Paulo, where more than 70% of the raw material for the
industrial mills come from their own plantations and consequently exclude
small- and medium-size sugarcane producers from the production chain.
It is also necessary to establish international negotiation channels for
the purpose of opening the way to promising markets and increasing the alcohol
market liquidity, thus strengthening, for example, the alcohol futures market.
These problems will only be solved when new actors come into play, supply
is dispersed and the systemic risks of future importers are reduced.
The Ministry of Foreign Relations (MRE) and the Ministry of Development,
Industry and Commerce (MDIC), with the participation of the Ministries of Mines
and Energy (MME), Science and Technology (CT), and Agriculture, Livestock
and Supply (MAPA), will head the efforts to guarantee Brazil's leadership in
international biofuel commerce.
The private sector is a consequential partner in the discussion of the
strategies to be adopted and in their execution.
In terms of social inclusion, MAPA – in partnership with the Ministry of
Agrarian Development – shall undertake actions to develop appropriate
technology for agroenergy production, as well as for its application, focusing
on remote communities without access to electric power.
Figure 3 synthesizes the links involved in the successful implementation
of the National Agroenergy Plan.