Sugarcane Agro-Ecological Zoning a Welcome Step to Promote Sustainability, but Amendments Will Be Needed According to Brazilian Sugarcane Industry

SAO PAULO -

The Agro-ecological Zoning of Sugarcane, a legislative proposal announced today in Brazil by President Luiz Inacio Lula da Silva, represents an important step to ensure the disciplined and organized expansion of sugarcane harvesting and its products, while addressing unsubstantiated claims against the industry. According to the Brazilian Sugarcane Industry Association (UNICA), the zoning proposal will prove useful to enhance the sustainability of sugarcane expansion, by going beyond land use restrictions defined in some export markets.

While UNICA has always supported the concept of Zoning and often called on the government to move forward more expeditiously, it also believes that various aspects of the proposal demand a more-in-depth analysis, so key provisions that were not adequately discussed with stakeholders prior to the announcement can be improved. UNICA did not have an opportunity to review the full proposal prior to today’s announcement.

Based on limited contacts with government agencies that either followed or were involved in developing the proposal, UNICA has already identified specific points that raise concerns and may need to be addressed prior to final approval by Brazil’s Congress. One such concern involves the challenges in defining the concept of food security in the proposal, since sugarcane is a crop that produces both food and energy. The proposed approach could lead to restrictions in growing sugarcane that would have the reverse effect in terms of food security, by restricting the production of additional sugar.

Brazil is today a breadbasket for the world, given its leadership in the production of major global commodities. This achievement was possible with sugarcane occupying only 2.4% of Brazil’s arable land, with less than half of the cane crop dedicated to ethanol production. In other words, with about 1% of its arable land, Brazil has met more than 50% of the country’s gasoline needs, a highly efficient use of resources and a clear demonstration of the great potential for the sustainable production of sugarcane biofuels.

It is important to note that with the portion of sugarcane dedicated to sugar production, Brazil supplies 60% of the world’s open sugar market after meeting its own domestic needs. In Brazil there is no conflict between food and energy, but complementarities between them. While sugarcane expansion has accelerated since 2003 with the launch of flex-fuel cars, food production in Brazil has doubled in the past decade.

Although there are some concerns about the detailed provisions of today’s legislative proposal, UNICA is welcoming the prohibition to deforest areas such as the Amazon and the Pantanal biomes. UNICA has always maintained that there is no need to clear forests in order for sugarcane to expand, given the availability of suitable lands for sugarcane harvesting, particularly degradated pastures.

After a detailed analysis of the Agro-Ecological Zoning proposal put forth by the Lula Administration today, and a closer look at issues unrelated to sugarcane that were inserted in the proposal, UNICA will make additional public statements wherever necessary.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top producers of sugar and ethanol in the country’s South-Central region, especially the state of Sao Paulo, which accounts for about 50% of the country’s sugarcane harvest and 60% of total ethanol production. UNICA develops position papers, statistics and specific research in support of Brazil’s sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced an estimated 565 million metric tons of sugarcane, which yielded 31.3 million tons of sugar and 25.7 billion liters (6.8 billion gallons) of ethanol.

MORE INFORMATION: CDN Corporate Communications - Sao Paulo, Brazil Rosa Webster - +55-11-3643-2707 / rosa.webster@cdn.com.br Mariane dos Santos - +55-11-3643 2730 / mariane.santos@cdn.com.br

Source: Brazilian Sugarcane Industry Association (UNICA)

Rosa Webster, +55-11-3643 2707, rosa.webster at cdn.com.br, or Mariane dos Santos, +55-11-3643-2730, mariane.santos at cdn.com.br, both of CDN Corporate Communications for UNICA