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Spring 11 MASTER.indd - Thunderbird Magazine

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iofuel revolution<br />

of Italian immigrants who manages São Francisco<br />

Mill near Ribeirão Preto.<br />

Balbo took control of the family sugar plantation<br />

in the early 1990s and quickly shook things<br />

up. Instead of growing with pesticides and fertilizers,<br />

he adopted organic farming methods.<br />

Instead of crop burning, he invested in expensive<br />

machinery that could handle the thick undergrowth.<br />

And instead of laying off workers, he<br />

retrained them for new jobs.<br />

Family stakeholders and industry observers<br />

thought Balbo was crazy, but he persevered.<br />

“I was a kid who used to chase birds and go<br />

fishing in the rivers,” Balbo says. “That love of<br />

nature has stuck with me since the beginning.”<br />

When he started working on the family plantation,<br />

he saw the environmental damage from<br />

the chemicals and the burning. He searched for<br />

more sustainable solutions and then quietly began<br />

winning converts to his ideas.<br />

“I started changing small things and then bigger<br />

things,” Balbo says. “Whoever wants to conquer<br />

the world should start with a tennis ball.”<br />

Balbo acknowledges he did not know what<br />

would happen when he switched to organic<br />

farming. He literally bet the family business on<br />

one idea: “Whatever you give to the Earth, she<br />

will repay you.”<br />

Production dropped 10 percent in the 1990s,<br />

and Balbo spent many restless nights worrying<br />

about the consequences. Then things began to<br />

change. The soil healed, wildlife returned, and<br />

sugarcane yields started climbing to new highs.<br />

“Suddenly the system we implemented started<br />

bringing back results,” Balbo says. “Now we<br />

have lots of studies proving that in all respects<br />

— environmental and economic — this kind of<br />

production is much better than conventional.”<br />

The same people who called Balbo crazy now<br />

call him visionary.<br />

“I am most proud that my uncles and father<br />

were humble enough to allow the second generation<br />

of the company to promote this change,”<br />

Balbo says.<br />

His eyes light up as he shares the story with<br />

his <strong>Thunderbird</strong> guests, as they visit his plantation<br />

Jan. <strong>11</strong>, 20<strong>11</strong>. His PowerPoint presentation<br />

includes dozens of his own photographs, and<br />

Balbo describes each one with the fervor of a<br />

preacher delivering a sermon.<br />

“I have more slides if you want to stay longer,”<br />

he tells the students after nearly two hours.<br />

Several days later, when Zerio gathers his students<br />

together one final time in their hotel lobby<br />

in Rio de Janeiro, the group describes the São<br />

Francisco Mill visit as a course highlight. Zerio<br />

agrees. “That was outstanding,” he says. “You<br />

saw the future of the industry.”<br />

Many questions remain as Brazil’s biofuel experiment<br />

reaches maturity. Barriers to international<br />

trade largely keep Brazilian ethanol out<br />

of the United States and other markets, but the<br />

potential for growth is immense. Competition<br />

from Petrobras and other oil companies will<br />

add pressure as Brazil taps into newfound oil reserves.<br />

And growth in developing countries will<br />

create uncertainty in global commodity markets.<br />

“Brazil’s ethanol program has had major ups<br />

and downs,” Zerio says. “But over time the program<br />

has been consolidated. Today it practically<br />

has transformed the country, and the future<br />

looks good.”<br />

“Whatever<br />

you give<br />

to the<br />

Earth, she<br />

will repay<br />

you.”<br />

A worker leaves the São Francisco Mill on<br />

Jan. <strong>11</strong>, 20<strong>11</strong>, near Ribeirão Preto. The plantation,<br />

operated by Grupo Balbo, grows sugarcane without<br />

pesticides and other chemicals.<br />

thunderbird magazine 41

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