S

Social impact of biofuel

production: The case of

Brazilian ethanol

Leandro R. Tessler

IFGW, Unicamp

Social impact of biofuel production

S Biofuel production has a strong impact in the economies of

many countries.

S Very often the social impact of the endeavor is overseen in

favor of economical

S Here I will review some social consequences of bioethanol

production in Brazil.

Bioethanol in Brazil

S Bioethanol in Brazil: Sugar cane

S Favorable 9:1 energy balance, compared to 2:1 for corn

ethanol.

S Large distribution infrastructure: Petrobrás.

Historical background

Colonial and imperial times

S Brazilian economy from XVI to XVIII centuries based on

sugar exports to Europe.

S Labor intensive processes powered by slave manpower.

S Very hard conditions in the fields.

S End of slavery in 1888 led to the end of the Empire in 1889.

S At this time coffee had surpassed sugar as main Brazilian

export

Historical background

1973: Proálcool

S Context: Oil crisis

S Objective: to reduce petroleum imports.

S Investment: subsidy program (US$10 bn).

S Results: avoided oil imports (US$60 bn).

S Main actions: S Ethanol price fixed on 65% of gasoline (advantage to ethanol) S Anhydrous ethanol added to gasoline, hydrated ethanol as combustible S Production quotas: cane, sugar and ethanol S Governmental control of sales: distribution by Petrobras S Tax reduction for ethanol-powered cars

S Mid 80s: 90% of all cars sold in Brazil were ethanol powered.

S 90s: Ethanol crisis S Increase of sugar price in the international market S Technical problems with ethanol-powered cars.

Historical background

Flex fuel and revival

Where Brazil plants sugarcane?

S North-east coast:

S Oldest (XVI century)

S 55 ton/ha

S South-east

S Highest productivity

S >82 ton/ha

S Highest mechanization

S Center-west

S Highest potential for

expansion

What is at stake?

Food security vs. Fuel security

Working conditions in the

sugarcane fields: manual harvesting

S Manual harvesting traditionally involves burning of the

straw to facilitate cutting

Burning

Areas mechanical harvesting

Working conditions

S One sugar cane worker cuts 10-12 tons per day

S Wages are seasonal S Although they are low, they are the second best in agriculture in

Brazil

S São Paulo State: best working conditions and best statistics available

S Recent study announced by the Secretary of Health S 27 mills in São Paulo State S A worker S does 17 back movements and 54 hits in the cane per minute S loses 8 liters of water per day S walks 9 km per day S has bad sanitation conditions

Canasat: Monitoring sugarcane crop

and harvesting in the SP state

S Possible to monitor the sugarcane burning

S http://www.dsr.inpe.br/laf/canasat/en/harvest.html

S Clear progress towards reducing burning

S Social problem:

S Mechanization creates unemployment of marginally qualified

personnel

S 115 k jobs lost because of mechanization

S Need to qualify

Job penetration

Bioethanol Consumption

0

500

1,000

1,500

2,000

2,500

Janeiro Julho Janeiro Julho Janeiro Julho Janeiro Julho Janeiro Julho

Mil

hõ

es

Unhydrated

Hydrated

2008 2009 2010 2011 2012

Bio

eth

an

ol

con

sum

pti

on

(li

ters

)

Source: UNICA

Summary

S Bioethanol production in Brazil has social costs and benefits

S Although the working conditions are very harsh, there is a

clear social inclusion effect by hiring workers with very low

qualification

S Sugarcane industry: 630 k jobs in the fields and 570 k jobs in

production: more than 1 million people

S Regulations are in the good direction but still more than

half of all sugarcane planted in Brazil is harvested manually

S Bioethanol production is not a threat to food security