Sugarcane and Ethanol in the State of Goiás Brazil

QUICK FACTS:

	Ranked 4rd in ethanol production and 4th in sugar.
	By 2010, expected to rank #2 in ethanol production.
	2007/8 Crop: 21.06 mmt, 4.43% of national total of 475 mmt
	Tax on ethanol lowered from 26% to 15% 1 May, which will make Goiás one of the most competitive ethanol producing states in Brazil.
	About 30% of harvest is mechanized.
	15 Sugar/Ethanol plants operating

51 projected plants

Ethanol/Sugar plant in Goianesia, Goias, Brazil

Ethanol Production Up in Goiás
4 Jan 10

According to the Union of the Manufacturing Industry of the State Alcohol (SIFAEG) and the Association of the Sugar Manufacturing (Sifaçúcar) there was an increase of 35% in Goiás harvest of sugarcane making Goiás the second largest ethanol producer in the country. The first is São Paulo with Paraná and Minas Gerais being 3rd and 4th respectively. Production of hydrated ethanol grew 33% to 1.64 billion liters this year. The production of anhydrous ethanol also increased 10.3%. The largest increase was in the manufacture of sugar, which increased 44%.

source: DCI - Diário do Comércio & Indústria via AgroLink

Cosan's New Plant in Jataí
14 Dec 09

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Four New Ethanol Plants By 2011
7 Nov 09

Four additional ethanol plants will be begin operations in Goiás by 2011. The announcement was made by the President of the Association of Manufacturing Industry Ethanol Goiás State, André Luiz Rocha Lins Baptista during the Regional Meeting of Energy. The event held at the Commercial Association of Industrial Aparecida de Goiânia yesterday discussed the outlook for energy Goiás. According to André Luiz Rocha Lins Baptista , the 2010 harvest should be around 40 million ton, compared to 28.6 million tons this year.

Sugarcane Expands in Goiás
8 Sept 09

With the commissioning of new plants, the ethanol industry in Goiás is growing much faster than the rest of the country.

In recent years, about 20 mills have started operations in the state, which should increase by 54% the production of sugarcane in the current harvest compared to 2008/2009. Throughout the country, the rate will be 10%. The data is from Conab (National Supply Company).

In recent years, the state has attracted companies such as Brenco, funded by U.S. investors, which is due to open five units in Goiás and Mato Grosso 2010. The government postponed the Goiás collection of ICMS (tax) as a way to get more projects in the sector. The state board of agriculture says that more than 80 plant projects already approved and that the growth in production is due to the "vocation" of the region for agribusiness.

But there is criticism of sugarcane expansion in the cerrado. In 2006, the Municipality of Rio Verde, one of the major agricultural centers of Goiás, signed the law that limited the planting of sugar cane to 10% of arable area of the city.

The goal was to prevent the weakening economy of the city with the growing of grain.

The government of Goiás said it works to stimulate the diversification of production.

The survey of Conab, however, shows that the area planted to sugarcane in Goiás will grow 36%. The amount of land planted with sugar cane to increase to an area the size of the city of Sao Paulo in the 2009/2010 harvest.

Productivity (kg / ha) increased 13% in the period, while in São Paulo State, the largest producer in the country, there was a decrease of 2%. Goiás is the fourth national producer, behind also Paraná and Minas.

The SIFAEG (Union of Manufacturing Industry Alcohol Goiás State) would rise less than that indicated by the Conab, due to effects of weather on crops.

The industry expects the completion of an ethanol pipeline designed to connect the interior of Goiás and Paulínia (SP) to help the flow of production.

"Attractive"

For Secretary of the Ministry of Agro Agriculture, Manoel Bertone, the region is "attractive" to the industry, because of factors such as fertile and flat land (to facilitate mechanization), adequate rainfall and even the price of land.

According to him, Goiás is able to further increase its production as São Paulo already "produces a lot of sugar" and has less area to expand.

Conab says that this harvest, the plants are giving preference to the production of sugar, which is selling for an "excellent price" in the international market.

Folha de Sao Paulo

28 August 09

Company invests $ 500 million ethanol plant in Caçu

With an initial capacity to crush 3 million tons of cane per harvest, plant is the 3rd largest state

ETH Bioenergy, a company controlled by Odebrecht in association with Japan's Sojitz Corporation, yesterday inaugurated the Rio Claro, ethanol plant in the municipality of Caçu in southwest Goiás; directly south of Rio Verde, GO. (see map), with initial capacity to crush 3 million tons of cane per harvest . The industry received $ 500 million in investments and is already considered the third largest in the state, behind only the San Francisco plants in Anantapur, and Vale Verdão in Maurilândia. But by 2012, ETH Bioenergy plans to invest an additional R$400 million to double its milling capacity in Rio Claro.

In the season 2010-2011, the unit will produce 190 million liters of ethanol and 50 megawatts of electricity from the processing of sugar cane bagasse.

With the completion of the second stage in 2012, capacity will reach 130

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megawatts, equivalent to a plant of medium size, of which 40 MW for its own account and 90 MW for sale in the national system. Unit Rio Claro was built in 13 months and generated 1.5 thousand direct jobs, even though harvesting will be 100% mechanized.

ETH already operates plants Alcídia in Teodoro Sampaio (SP), and Eldorado, in Trezevant (MS). In Rio Claro, two other units are being built and put into operation in the coming weeks: the Santa Luzia unit in Nova Alvorada do Sul (MS), and the Conquest of Pontal unit in Anjghalai (SP). The president of ETH, CEO José Carlos said that the project company is to invest in regional centers with large-scale production, such as São Paulo, and an integrated production chain. Therefore, after the completion of the expansion plan, another unit can be installed in the Southwest Region. He said the goal is to be among the industry leaders by 2015.

With five units, ETH will start the 2010-2011 season with an installed crushing capacity to 13.2 million tons of cane sugar. By 2012, with the completion of expansion projects, the installed capacity of five units will reach 28 million tons of cane. CEO Jose Carlos reports that 90% of the cane that will supply the unit Rio Claro is still produced by the lease. "The goal for the next few years is that 50% to 55% are own production and 45% to 50% of suppliers, "he says.

According to the President of ETH, ethanol production will only supply Goias market. The company has not decided whether it will also produce sugar in the medium and long terms. He said the municipality met Caçu favorable conditions to receive a large agricultural project, besides having logistical advantage over the major consuming centers. The State also proved a good business environment for the company. "We invested in research and technology to produce clean and renewable energy."

Goiás is the fourth producer of sugar and the third in ethanol production, behind only São Paulo and Minas Gerais. This is the 32nd industry of sugar and alcohol in the state and opened by the end of the year, the 33rd plant will be inaugurated in Jataí by Grupo Cosan.

1 July 09

Biodiesel production in Goiás Supplies the Center-West

About 120,000 MT of soybeans were harvested in the 2007/08 season in a planted area of 47,570 hectares. This makes Goiás an exporter of raw materials for the manufacture of biodiesel. The expectation for the 2008/09 crop harvest is about 140,000 MT, with 57,080 hectares planted. The figures come at a time when the federal government announced today (1 July 2009), increasing to 4% (B4) in the mandatory mixing of biodiesel to mineral diesel fuel sold in Brazil.

The change indicates an additional demand of 420 million liters, increasing the use of biodiesel to 1.26 billion liters.

Replacement of diesel

Another reflection is consistently positive replacing the diesel imported - products and polluting fossil - fuel for domestic, clean and renewable. The expectation is that Brazil strengthen later this year, the participation of agrienergy the energy matrix with the addition of 200 million liters in the domestic production of the product (B100). Therefore, the main producing regions of Goiás already preparing to jump more ambitious.

For the 2008-09 season, the prospect for companies that already operate in Goiás is that 1,914 families (an increase of 14% on the previous season) will be assisted by the Family Agriculture. In total, 35 hectares of planted area is reserved for each of the registered families. Goiás already accounts for 10% of purchases of the product resulting from the work in this mode of production, throughout the Midwest region.

For the 2009-10 season, the scenario is even more encouraging, with expectation of achieving 15% of the total market in the Center-West, despite the difficulties faced by families of farmers and businesses geared to the segment.