Ministry of Agriculture, Livestock and Food Supply - Embrapa

in Brazil's share of the international sugar market, while the world moves towards
using ethanol as fuel oxygenant, as we do.
It is estimated that a sugarcane supply of 220-million tons would require
increasing the sugarcane-farmed area by almost 3-million hectares in the next 6
to 8 years.
The goal of planting three million hectares could be substantially reduced
by means of continuous, substantial productivity gains and by increasing sucrose
contents. Either way sugarcane plantations occupy only 10% of the total planted
area and much farmable land is still available in the country, particularly in the
Cerrado22 .
Brazil faces other more worrisome internal and external challenges that
involve government policies and the large public and private investments required
to meet the growing domestic and foreign demands. Despite the pioneering spirit
and technical qualifications of our industry, as well as the lower costs and
considerable potential to increase production, such challenges require concerted
planning and action by both government and private sector.
The first and perhaps greatest challenge relates to the size of the world
fuel-alcohol market. Half of Brazil's sugarcane production suffices to replace 40%
of the gasoline consumed in the country, while world ethanol production and
demand are still insignificant, although quickly growing.
It is absolutely essential to seek partnerships, particularly with other
sugarcane producer countries. They could follow in the steps of the Brazilian
agro-industry, invest in improving the use of their raw material by diversifying
production and improving sugarcane quality, which would give them access to
two different markets: the food market and the energy market. Alcohol production
can be an alternative for countries benefiting from special USA and EU quota
regimes, such as the Caribbean and Pacific countries (ACP). In turn, this would
bring Brazil closer to them and dispel any dissatisfaction caused by the WTO
panel brought by Brazil, Australia and Thailand against the European sugar regime
from which they benefit.
In addition, alcohol production in the ACP countries would mean more
demand for Brazilian services and industrial equipment, as well as new
investment opportunities abroad focusing on new markets.
Contacts with countries that have a large demand, particularly the United
States, for the purpose of working together to define international technical
22 The pasture area with some degree of degradation is estimated at 50-million hectares, most of it in the
Cerrado.
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