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US-made Corn Ethanol Is Not the Way to Go, Warns Brazil's Lula

Sugarcane cutter in Brazil Once again Brazil's President, Luiz Inácio Lula da Silva, stressed the importance of the Brazilian production of ethanol and biofuel and said that Brazil is capable of teaching wealthy countries how to reduce emissions of gases that cause greenhouse effect.

"We are introducing to the world a new energy matrix in the fuel sector. Should the world adopt it, then we will have much less pollution, much less gases emitted into the atmosphere, especially those that cause greenhouse effect.

"I am convinced that Brazil has things to teach the developed world  how to avoid emission of gases that lead to the greenhouse effect," said the president in his weekly radio show Café com o Presidente (Breakfast with the President).

Lula also commented on the Human Development Report of the United Nations Development Program (UNDP), disclosed last week. The document indicates that wealthy nations are responsible for 70% of the gases that cause the greenhouse effect, whereas poor countries answer to 2% and developed nations, such as Brazil and India, for 28%.

While discussing the UN survey, the president once again criticized the alcohol fuel produced by the United States, which has a higher cost.

"Brazilian alcohol limits emission of gases that lead to greenhouse effect by 70%". Ethanol, made out of corn, reduces gases by only 13% and has a higher cost, and this is the variety that the United States produces," Lula stated.

The UNDP report calls upon North Americans and Europeans to open up their markets to Brazilian ethanol, which is made from sugarcane, in addition to suggesting the implementation of a tax on gas emission.

According to the UN, the tax might reduce other tariffs, or encourage the development of less polluting fuels. The organization estimates that taxes on carbon dioxide CO² emission may generate annual revenues of up to US$ 265 million.

Comments   

0 #4 wtf?A. Troll 2007-12-07 04:04
Why is there such hostility and ... well... a bunch of assholes on the site?
Nobody gives a fuck about what some armchair economist thinks. Just keep you bile to yourselves.
Quote
0 #3 Eduardo 2007-12-05 14:27
You think..that reading shit magazine´s..you now something about agriculture in Brazil.
Go study !!AGAIN...But with experience..not reading shit magazine´s.
No..wait.. have a better idea..go make CHOCOLATE in the Alps.
Maybe..play card´s together with the Skinheads..and put nazi money in Your banks.
And you know..why you hate Brazil?? Because you gat a big CHIFRE..FROM a BRAZILIAN women.Buy the way I am a farmer..and don´t get any subzidises.
Otherwise i drove the car on the German..and Swiss Alps..and you can see little peaces of land..somethink..about one ha. our less..with big cars on the garage.
Try to work hard hear in Brazil.. Who survive.. are just the good ones.
Good bless you and you DIRTY CHOCOLATE ASSHOLE
Quote
0 #2 continued.......ch.c. 2007-12-04 20:05
In another recent article, they were talking about the "euphoria" in sugarcane.

Yesssssss........ a true EUPHORIA :

4 December - Tuesday
Sugarcane Prices Down
The average price of sugarcane for the 2007/08 harvest is R$35.00 mt, while last year it was R$52.00 mt. This is the worse return for producers since 1998/99 harvest. The cost of production this year is approximately R$42.00 mt in São Paulo State. Prices are expected to remain low for the 2008/9 harvest as well.
Source: Conselho dos Produtores de Cana-de-açúcar, Açúcar e Álcool do Estado de São Paulo (Consecana)


Ohhhhhh.......and still not competitive to oil........despite your lying and cheating statements.

But yesssss.....you should still double, triple, quadruple your sugarcane production....and increase YOUR LOSSES !!!!

I have repeated time and again for the last 3 years, that your sugarcane/ethanol was the biggest scam ever. Very similar to your
"teak" and "ostrich" investments programs. Except this time the scam was multiplied by a factor of 100.

HUGE losses are going to be made by your sugarcane farmers and those "smart" foreigners who raised money in the international market
to build ethanol mills !!!!!!
Price of great land will collapse once more, just as it did from 2004 peak to 2006 bottom.
Those farmers who switched from grains to sugarcane, have made the error of their life. Because sugarcane prices collapsed, and grains producers are making....a little money by now.
Worse yet, the investments needed in sugarcane per hectare is HIGH, since sugarcane will produce for several years, while you seed the grains annually.
Still worse yet, most of the sugarcane producers have made 5 years rents contracts for land.
How are they going to pay the rents....when they are not only to produce more....but lose more for every ton they produce ?????

No doubt, that a new "switch" will be made. After the sugarcane will stop producing, no new replanting will be made in large areas, and planted again with grains. This will happen in 2 to 4 years since sugarcane produces for 5 to 7 years. But maybe not, if soyabeans/corn prices will be low.....also ! And how could the switch be made from producers/farmers....totally bankrupt ??????

LAUGH::::LAUGH::::LAUGH..... !!!!!

You are against agricultural subsidizes in developed countries ?

Wellllll....wellll......you are going to subsidize YOUR sugarcane producers, just as you did in 2005 and 2006 for your grains farmers.

And extend their loans worth tens of billion BRL at subsidized rates from the BNDES, just as you did with grains farmers in 2005 and 2006.

And the problem will even be more severe, if by any chance the grains prices will also be low at the same time. Because You will subsidize BOTH your sugarcane AND grains producers.


Yessssss great opportunities lie ahead : buying great producing land at......distressed price to those bankrupt producers !!!!!

The cycle just repeat itself....time and again, and even more so in Brazilian agriculture.

:D ;-) :D ;-) :D ;-) :D ;-) :D ;-)
Quote
0 #1 " Brazil has things to teach the developed world how to avoid emission of gases "ch.c. 2007-12-04 19:08
1) Why are then your cities far more polluted ?
2) If ethanol from corn is not good, why then Brazil is building mills to make ethanol....FROM CORN ?
Yesssss......by 2010 10 % of your corn will be transformed to ethanol....and growing-
3) Same for Soyabeans. By 2010 15 % of your soyabeans will be transformed to biodiesel....and growing !

Are you not against "food" to be transformed into biofuel ? I think you are. Correct ?


Ohhhhh is sugar not a food ? Has Sugar not more calories than corn ?????????

And if you have enough sugar, corn and soyabeans for exports, why is then 40 % of your population.....UNDER NOURRISHED ??????

LAUGH.....LAUGH....LAUGH....LAUGH.... !!!!!
Quote

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