For an industry that is fast becoming a verifiable and sustainable model of energy development, the labor that supplies the demand will likely get its fair share of attention (Goldemberg, 2007).
On the marketing end of the industry, there is the automobile manufacturing boom of flex cars, and the new multi-billion dollar deals between the largest ethanol producer in Brazil, Cosan Limited, and Royal Dutch Shell. The most recent joint venture between these fuel giants is worth an estimated $12 billion dollars. However, Cosan has encountered pushback due to its treatment of employees, and even global market giants like Walmart have suspended contracts with Cosan until this issue is resolved. Additionally, the banks of Brazil have put holds on any future lending until Cosan deals with the labor issue (Martinelli & Filoso, 2008).
On the ethanol end of business, Royal Shell and British Petroleum are to date the only major global energy companies that have invested heavily in Brazilian ethanol. However, as will likely prove to bear, when the monopoly and squeeze that is used by the family owned enterprises...
Issues that must be dealt with are a reassessment and 'fix' of labor practices, the issue of deforestation for cropland conversion, and being able to sustain the land for continuous use of agriculture. Whether there is a limit to the sustainable supply of sugarcane remains to be seen.
Works Cited
Delgadoa, R., Araujo, A., & Fernandes, J.V. (2007). Properties of Brazilian gasoline mixed with hydrated ethanol for flex-fuel technology. Fuel Processing Technology, 365-368.
Goldemberg, J. (2007). Ethanol for a Sustainable Energy Future. Science, 808-810.
Martinelli, L., & Filoso, S. (2008). EXPANSION OF SUGARCANE ETHANOL PRODUCTION IN BRAZIL: ENVIRONMENTAL AND SOCIAL CHALLENGES. Ecological Society of…
The economy may be strong in some areas but weak in others as the fuel industry seeks to deprive the culture of traditional food bearing crops, in exchange for fuel bearing ones, and decreases the biodiversity of the nation in the process. "... with ethanol and biodiesel as a springboard, Brazil's President...Lula da Silva aims to turn his country into an energy superpower --...environmentalists warn that although bio-fuels reduce