April 6, 2010
Countries should resume discussion on the use of ethanol in the world, says Ipea
See below other news about ethanol:
- U.S. producers launch campaign against Brazilian ethanol
- Global crisis and low prices have reduced investments in the sugar cane
- Production of sugarcane is expected to grow in Mato Grosso
Brasília - The ethanol producing countries should resume at any moment the discussions on the feasibility of cultivation of cane sugar for the production of hydrated alcohol - particularly in sub-Saharan Africa, Latin America and the Caribbean - and its international marketing.
Who bet this thesis are the technicians of the Institute of Applied Economic Research (IPEA), Pedro Silva Barros and Giorgio Romano Schutte, who have done recent research on The Geopolitics of Ethanol.
For them, the global financial crisis, initiated in September 2008, was primarily responsible for taking the discussion of the energy spotlight. This was compounded in Brazil, where the spotlight in the debate on energy in 2009 were directed to oil-layer pre-salt. Thus, biofuels space lost in the discussion.
The research of Barros and Schutte points out that should not be left in the background discussion of the "equally promising future of ethanol." For them, in a scenario where concern for the environment is irreversible, it is mandatory that Brazil can articulate harmoniously the various sources of energy. The study shows that Brazil has much to gain from the development of the ethanol market, since the yield obtained with the cane sugar is much higher than the extractions derived from corn in the United States, and beet, in European countries.
In addition, there is the fact that Brazil dominate all phases of the production chain, from planting to marketing and use of better production technologies.
The only thing that weighs against Brazil is the fear of consuming countries in relation to dependence on a few exporters of ethanol, as happens today. Markets in which Brazil has the field almost total, distantly followed by the United States, India, China and South Africa
The researchers from IPEA said that the realization of a world market of ethanol involves the processing of the product into a commodity (with price international, defined by the Chicago Stock Exchange).
For researchers, coordinated action is needed to encourage the production of sugarcane in third countries, the private sector and technical cooperation, public sector, to improve agricultural production - particularly of the Brazilian Agricultural Research Corporation (Embrapa ), which already performs some actions that end in African countries.
Source: Stênio Ribeiro, repórter Agência Brasil.
Google translation, copy-desk: Maurício Galinkin
U.S. producers launch campaign against Brazilian ethanol
The producers of U.S. ethanol, using corn as raw material, has launched a new offensive to try to block the entry of Brazilian ethanol from sugar cane. Last week, two members of the caucus in Washington, submitted a bill to try to extend for a further five years the subsidies to corn farmers and tariffs on ethanol imports.
The Industry Association of Sugar Cane in Brazil (Unica) believes that this is the main battle of the year for Brazilian ethanol producers.
Recently, Brazilian sugar mills obtained a great victory in the U.S., with the recognition by the Environmental Protection Agency (EPA), that ethanol produced from sugar cane is an advanced biofuel, which reduces by at least 40% dioxide emission carbon compared to gasoline. The EPA's decision opens the door for the U.S. market - provided that the lobbying of the producers of corn ethanol can not maintain or raise the barriers existing today.
Subsidies. The current legislation provides for two types of benefits to U.S. producers. One is the benefit: for every gallon of gasoline with ethanol, U.S. producers of ethanol earn a credit of $ 0.45 to be shot in taxes. Another benefit is the import tariff, which imposes rate of $ 0 54 per gallon on Brazilian ethanol. This law is in force until the end of the year.
The bipartisan action announced last week by Mr Obama and Republican John Earl Pomeroy Shimikus aims to defend this protection to American corn producers. A bill similar and coordinated with the Board must be filed in the Senate in coming weeks.
According to the two MPs, if the current law expires, 112 thousand jobs could be lost and the production of ethanol will be reduced by 38%. "At a time when the U.S. economy faces problems, we can not allow these tax incentives expire, undermining the growth we have seen in our ethanol industry," said Pomeroy. "The extension of tax credits help the industry to contribute to the security of our nation," said Shimkus.
The proposal was immediately opposed by producers in Brazil and the U.S. food industry, which ends up paying more for corn that is not intended to ethanol.
Reaction
Joel Velasco, UNICA's representative in Washington, issued a statement saying that "Americans will not benefit from this alternative cleaner and more economical if Congress continue erecting trade barriers against imported ethanol." "It is ironic that Congress allow oil from nations hostile to the U.S. entering the country without paying fare, while penalizing the clean energy of Brazil, a longtime democratic ally."
The American Meat Institute, representing U.S. producers of meat, also spoke. "Unfortunately, this law continues to support and protect dishonestly corn ethanol in the last 30 years at the expense of American taxpayers and cattle and birds that depend on corn for feed," he said in a statement, the president of the association, Patrick Boyle. "It is time for the ethanol industry to stop using American tax money and go on to compete on their own in the free market."
Unica in the U.S. Congress has acted to defend the position of Brazilian producers. The main argument is that tax incentives are $ 6 billion to U.S. coffers each year.
The task will be difficult, since this is an election year and corn producers influence the votes for members in many states. President Barack Obama also knows that his turn in the presidential race came thanks to his victory in the primaries in Iowa, a major corn-producing states.
The corn growers to use the EPA report for their lobby. As the EPA estimated that sugarcane ethanol is less polluting than corn, American manufacturers say this is another reason for the government to defend them.
Source: Gustavo Chacra - O Estado de S. Paulo, New York Correspondent
Google translation, copy-desk: Maurício Galinkin
Global crisis and low prices have reduced investments in the sugar cane
Sao Paulo - A lack of investment in recent years in the renovation of sugarcane may affect the next crop sector. According to the technical director of Industry Union of Cane Sugar (Unica), Antonio de Padua Rodrigues, the international crisis and low in alcohol prices, the industry stopped investing in the recovery of crops.
According to data released this week by Unica, investments in sugarcane plantations in 2009 were 23% lower than 2008. Robinson notes that the aging of the planting becomes more unpredictable production. "Nobody is able to do planning in a sugarcane crop unbalanced," he said.
Roberts believes that the sector companies will have to invest in its plantations in the next offseason, which will reduce the area available for harvest. "You finish this season with a cane field totally unbalanced and companies want to standardize their sugarcane. Increasing the area of reform next year, you will have less area available for harvest, "he explained.
The new areas of plantation cane sugar will succeed, according to Rodrigues, hardly compensate for the areas that need to be reformed. "Obviously we will continue having expansions, but the likely scenario is that it compensates for the reduction of area to be harvested next season," he said.
The harvest this year, 2010/11, should surpass by 10%, totaling 595 million tonnes of cane crushed, according to estimates from Unica. Ethanol production should reach 27.3 billion liters, 15% than last season. In sugar, production must increase by 19.1% and reach 34 million tonnes.
According to Unica, the results should show the normalization of the season, after an atypical year. Excessive rains in 2009 damaged, according to the entity, the last season and was responsible for the great rise in prices recorded since the end of the year. Furthermore, the producers had sold part of the product below the cost price at the beginning of the year to compensate for a lack of liquidity.
The president of UNICA, Marcos Jank, said that, however, the exceptional conditions established last year is unlikely to repeat. He added that the industry works closely with the federal government to strengthen a program storage of ethanol to give more stability to oil prices.
Source: Daniel Mello, repórter Agência Brasil. Edição: Enio Vieira
Google translation, copy-desk: Maurício Galinkin
Production of sugarcane is expected to grow in Mato Grosso
Mato Grosso will grow 215 thousand hectares of cane sugar in the 2010/2011 season. Of this total 93.4%, equivalent to 200.9 thousand (ha), submit to the cane sugar industry to be transformed into sugar and ethanol. The remainder (14,095 / ha) will be used for seedling production, rum and other derivatives of the product. The numbers are preliminary and were cleared by the Union of Sugarcane Industries of Mato Grosso (Sindalcool-MT), based on the intention to produce 10 plants in operation in the state. The cut cane is carried out between April and November.
According to the entity will be processed 14.1 million tons of cane sugar this season, a slight increase of 0.39% on volume ground last year, which accounted for 14.045 million (t). The amount is still 7.7% lower compared to the volume processed by the state units in the harvest 08/09, when 15.283 million were milled (t), the highest number of the last 5 seasons. In assessing the union's executive director, Jorge dos Santos, the concern of the industry is not concentrated in the 10/11 season but in 11/12.
He said the industry are low wages and no capital by selling the product any intention of limiting investments in the fields. The cut of the same cane plantation can be done within 5 years following the planting and many plantations that term is ending this year. "If no new planting, fertilizing and processing of sugar cane will not have enough production from next year to meet the market," said Santos, explaining that even the recovery of the ethanol price in recent months was enough to profitability sector increased.
According to data from Sindalcool, total production of ethanol in the 10/11 season is 818.958 million liters, 0.84% less than recorded in the previous season, which reached 825.914 million / l. The reduction is driven by the production of anhydrous alcohol, which is expected to total 254.2 million / l, compared to 271.9 million tonne last year, a decrease of 6.5%. Already the hydrated increased from 554 million / l to 564.7 million / l increase of 1.9%.
Source: A Gazeta
Google translation, copy-desk: Maurício Galinkin