Survey of sugarcane industry in Minas Gerais, Brazil: Focus on sustainability

b i o m a s s a n d b i o e n e r g y 5 8 ( 2 0 1 3 ) 1 4 9 e1 5 7

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Survey of sugarcane industry in Minas Gerais, Brazil: Focus on sustainability Karina R.O. Viana*, Ronaldo Perez Departamento de Tecnologia de Alimentos, Universidade Federal de Vic¸osa, Avenida PH Rolfs s/n, Campus Universita´rio, Vic¸osa, MG 36570-000, Brazil

article info

abstract

Article history:

Sugarcane industry is one of the most important agribusiness sectors in Brazil, which re-

Received 7 July 2012

ceives foreign investments for expansion, due to great international interest. However, its

Received in revised form

expansion has been subject to control and restrictions related to sustainability imposed by

19 February 2013

foreign institutions and governments in developed countries. The present work aimed to

Accepted 2 August 2013

assess the progress of ethanol plants from the region of Triaˆngulo Mineiro, located in the

Available online 2 September 2013

state of Minas Gerais, and their sustainability. It also provides information that can support local development and industry structure, based on the discussion of important issues to

Keywords:

business, government and society. To obtain all the necessary information, a survey

Ethanol plants

questionnaire was prepared and applied in the sugar ethanol plants and associations of

Sugarcane producers

sugarcane producers. This survey instrument included questions pertaining to current

Sustainability

sustainability requirements, and questions to characterize producers and industries in this

International requirements

meso-region. The results revealed that companies and farmers are aware of the interna-

Minas Gerais

tional and national agreements regarding sustainability and they are trying to meet all the requirements stated by those policies. The study not only demonstrates the evolution of the sector, but also the high level of the sustainable practices being adopted. ª 2013 Elsevier Ltd. All rights reserved.

1.

Introduction

Sugarcane industry is one of the strongest agribusiness sectors in Brazil and is currently undergoing the expansion of its capacity and implementation of significant changes in its operations, mainly including the intense modification in the procedures for planting and harvesting, strong growth in bioenergy production, deployment of new technologies and new products, such as bioplastics, biobutanol and cellulosic ethanol, as well as profound changes in corporate structures of plants. Ethanol is a sector of international interest, which brings trade and technology responsibilities. It has received significant foreign investment and expanded exports of sugar and

ethanol. Due to its expansion, the sector has also been subject to the control and restrictions imposed by importing countries. In 2010, according to the Brazil’s National Supply Company (Conab) [1], Minas Gerais state was ranked the second largest producer of sugarcane in the country, with approximately 56 million tons, following Sa˜o Paulo, which produced 362 million tons in that year. The meso-region of Triaˆngulo Mineiro is the most important in volume of production in Minas Gerais state, according to the data from the Union of Alcohol Manufacturing Industry of Minas Gerais (SIAMIG) [2] and Conab [1]. According to Cane Mapping via Satellite Images and Earth Observation (CANASAT) [3], sugarcane production in the Triaˆngulo Mineiro represents 60% of the total

* Corresponding author. E-mail addresses: [email protected] (K.R.O. Viana), [email protected] (R. Perez). 0961-9534/$ e see front matter ª 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.biombioe.2013.08.006

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cane processed in the state, occupying an area of 453,000 ha, which is 14% of the total regional area. The present work aimed to study the input chain development in the Local Productive Arrangement (APL) in Triaˆngulo Mineiro, given the importance of this meso-region to the sugarcane sector in the state. The results of this work demonstrate the aspects of the organization of the agricultural production, location and participation of input and services suppliers, and their mechanisms of interaction with the APL; aspects of the structure of ethanol plants and levels of potential fulfillment of the international norms regarding market and sustainability. The present work intends to provide information that can support local development and industry structure, based on the discussion of important issues to business, government and society. Such information and discussions are important for sugar ethanol plants, since, in many forums, like in Rio þ20 (United Nations Conference on Sustainable Development) [4] they have been accountable for negative actions against the environment and society, including the destruction of native forest areas, decreased diversity in rural production, release of vinasse in rivers, soil pollution and erosion, pollution of water resources by pesticides, emission of pollutants into the atmosphere by sugarcane burning, destruction of biodiversity, elimination of small and medium enterprises and increased exodus from rural areas. Many people know that most of those problems did not result from the introduction of sugarcane cultivation, but have been caused by the rural development established in Brazil for decades. However, the solution for these problems is now being required from the sugarcane sector, which is under strong pressure from the international community to provide guarantees of good working and environmental conditions in the development of ethanol production, in order to meet the guidelines and laws of the developed countries. Therefore, it is not enough to demonstrate the importance of sugarcane cultivation for the development of a region, through the strengthening of economy (income generation, foreign exchange and taxes), with social (jobs and wealth in small cities) and environmental (mitigation of the negative consequences of climate change and improvement in air quality in cities) development. It is paramount that the actions taken and the level of compliance with international requirements be reported. Accordingly, the assessment of companies’ knowledge on standards, national and international agreements related to sustainability has become the main objective of this study, given the relevance of this issue in the world today. Thus, by proposing and assessing the organizational model of ethanol production and its integration with other productions, this study aimed to generate research results that will create conditions to increase the economic and social potential of ethanol production in the Triaˆngulo Mineiro, by encouraging and ensuring the responsible use of natural resources.

2.

Methodology

A survey instrument was developed in order to obtain the information necessary to characterize the sugar and ethanol

sector in the Triaˆngulo Mineiro, and evaluate it regarding sustainability. The study aimed to evaluate how distant the sugar ethanol plants are from acquiring an international certification, like the Directive 2009/28 from the Europe parliament. The survey instrument was a questionnaire with 47 questions related to current sustainability requirements and 42 aimed to characterize the sugarcane farmers and the sugar ethanol plants in this meso-region. It approaches questions about labor and environmental issues, harvesting mechanization, labor qualification and etc. The type of the questions varied between multiple choice and open-ended, as can be checked in Annex 1. The questions about sustainability were based on the Directive 2009/28/EC of the European Parliament and of the Council (EU) [5], which promotes the use of energy from renewable sources, and on the Environmental Protocol of Minas Gerais state [6], related to the elimination of sugarcane burning and the implementation of mechanical harvesting. The questions were based on the standards established by those agreements before cited. The respondents were not informed about those standards as were let themselves to define what they understood by sustainability and their indicators. This approach intends to evaluate the level of knowledge of the sugar ethanol plants about the theme and the level of adoption to those practices and requirements. Meetings with experts on the area were held, including the head of the SIAMIG and the technical advisory coordinator of the FAEMG. In those meetings, all the 89 questions of the questionnaire were discussed, aiming to obtain an instrument as complete and comprehensive as possible, and to confirm that the questionnaire covered the main aspects on sustainability and sugarcane supply chain [7,8]. In order to validate the questionnaire and to train the team that would collect the data, the first questionnaire was applied in a sugar ethanol plant of another meso-region of Minas Gerais. This action also aimed to know in advance questions that could be raised and other issues related to the survey instrument, besides verifying whether it would be understood by respondents. The Union of Alcohol Manufacturing Industry of Minas Gerais and the Agriculture and Livestock Federation of Minas Gerais (FAEMG) provided the contact lists containing all the plants associated to the SIAMIG and the sugarcane farmers related to the FAEMG [9]. At the time this study was conducted, there were 26 plants in operation and 13 sugarcane farmers associations (representing 198 sugarcane producers) in the meso-region of the Triaˆngulo Mineiro. Out of these, 12 plants and 5 associations of sugarcane farmers answered the questionnaire. The survey was carried out in 2010. By that time, the sugar and ethanol plants and sugarcane farmers surveyed represented 53% of the cane crushing capacity, 55% of the ethanol and 51% of the sugar produced in the Triaˆngulo Mineiro (Table 1). The directors and managers of environment, industry and agricultural production of the sugar and ethanol plants and the presidents of the sugarcane farmers associations were interviewed. The goal of the research was explained to them before starting survey, and at no point were clarified the concepts and agreements pertinent to sustainability. Based on

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Table 1 e Crushed sugarcane and sugar and ethanol production in the Triaˆngulo Mineiro in the 2009e2010 harvest. Sugar/ethanol plants

Crushed Sugar Ethanol cane (t) production production (t) (m3)

Total plants in 34,171,900 Triaˆngulo Mineiro (TM) Surveyed plants 18,016,570 Ratio between surveyed 53% plants and total plants in TM

2,112,904

1,379,310

1,086,670 51%

758,259 55%

the statistical principle of multivariate analyses, the data collected were analyzed by the SPSS (Statistical Package for the Social Sciences) 15.0 for Windows [10]. Using commands such as frequencies and cross tabulations, a descriptive statistical analysis was carried out to summarize the answers obtained. The results obtained were discussed in workshops with experts from the sugar ethanol sector, academy and organizations related to the sector, as Federac¸a˜o da Agricultura e Pecua´ria do Estado de Minas Gerais e FAEMG and Secretaria de Estado de Cieˆncia, Tecnologia e Ensino Superior de Minas Gerais e SECTES, in order to contextualize, evaluate and check if the information collected is in agreement with the reality. The information was completed with technical materials, articles, journals and other materials related to this scenery. The results can be seen in the next item of this study.

3.

Results and discussion

In this section, the results are presented and discussed in separate areas of concern.

3.1. Characterization of the sugar and ethanol plants of the Triaˆngulo Mineiro The survey showed that most sugar ethanol plants installed in the Triaˆngulo Mineiro are new: six of the surveyed companies have operated for less than 10 years; three for more than 30 years; the remaining, between 10 and 30 years. Nine mills answered the question related to market performance, and it was found that all interviewed sugar ethanol plants have a participation in the foreign market, as can be checked in Table 2. At least 25% of their production is commercialized abroad. This is important information because those distilleries that export probably will face sustainability requirements in the future (Table 2). Regarding the installed capacity, it was found that seven of the sugar ethanol plants have a crushing capacity lower than 10,000 tons per day. About the sugar and ethanol production capacity, four sugar ethanol plants produce from 500 to 1000 ton of sugar per day and five produce from 250 to 500 m3 of ethanol per day. It is important to observe that out of the 12 sugar ethanol plants interviewed, one produces only ethanol and another one, only sugar. The other 10 mills produce both. According to Cavalett

Table 2 e Participation of the sugar ethanol plants at the national and international market. Participation in the market Less than 25% From 26 to 50% From 51 to 75% Above than 76%

National market

Foreign market

Mills

Percentage

Mills

Percentage

0 4 1 4

0.0 44.4 11.1 44.4

4 2 3 0

44.4 22.2 33.4 0.0

et al. [11], most of the bioethanol are obtained as a co-product of the sugar production, which means that sugarcane is fractioned to be used in sugar and ethanol production, and most of it is diverted to sugar production. However, most of the new biorefineries are autonomous distilleries where all sugarcane is crushed to produce ethanol [11]. In Brazil, in the 2009/2010 harvest, from the total of sugar and ethanol produced (53,229 thousand t), 62% corresponded to sugar production [12]. All the surveyed companies are self sufficient in energy. They can be divided into two groups; the cogeneration mills, which sell the excess energy, and the sugar ethanol producers that produce energy only for their own consumption.

3.2.

Agricultural production

The present study also aimed at analyzing the form of contract between the sugar ethanol plants and their suppliers of sugarcane in the Triaˆngulo Mineiro and assessing the occurrence of a partnership, given the importance of this relationship to them. The organization of the agricultural production is essential to the success of the distilleries, because with it they can avoid problems with the loading, harvesting and transport. According to Neves et al. [13], due to the specificity of the assets involved in the transaction between sugarcane farmers and sugar mills and distilleries, three forms of agreements are used: i) Vertical integration (Own Production: self area) e sugar mills and distilleries own the land where sugarcane is planted. They are autonomous and self-managed; ii) Leases (Own Production: holding area) e the lands used for production are leased by the sugar mills and distilleries, and they manage the culture, while the land owner is responsible for monitoring the land conservation; and iii) Specialized Producers (Outsourced Production) e sugarcane farmers specialized in supplying cane to sugar and ethanol mills are bound to them by contract. Harvest and plantation can also be carried out by sugarcane farmers for others employed by sugar ethanol plants. All companies have the three types of transaction mentioned above. On average, 43% of the sugarcane obtained come from third parties; 42%, from leased areas; and, eventually, 15%, from own areas. The analysis of the amount of sugarcane suppliers revealed that around 36% of the plants have fewer than 10 suppliers, while approximately 45% have more than 50 (Table 3). Table 4 shows the relation between the milling capacity and the number of suppliers. When capacity increases, the number of suppliers per company also increases, except for

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Table 3 e Quantity of sugarcane suppliers of the surveyed sugar ethanol plants. Quantity of sugarcane suppliers

Sugar ethanol plants

Percentage

4 2 3 2

36.4 18.2 27.3 18.2

Less than 10 From 11 to 50 From 51 to 100 More than 100

two plants, which have lower capacity (<10,000 t/day) and more than 100 suppliers. This amount is greater than that of the plants with greater capacity. One possible reason for this difference is the size of the properties. It is assumed that the farms located close to these two mills have smaller planted area, compared to the other suppliers, which leads to the need of more suppliers to ensure the same amount of sugarcane, compared to others of the same capacity. The reasons for the selection of each type of transaction were investigated, and the companies reported that the choice for vertical integration takes place mainly due to economic feasibility, while land availability is the second in the ranking, and labor and environmental issues, the third (Fig. 1). Regarding outsourcing production, the main reasons are land availability and agricultural history of the region; followed by economic feasibility and land availability; and economic feasibility, land characteristics, agricultural history and management were equally mentioned and ranked third (Fig. 2). Analyzing the priorities for vertical integration and outsourced production in other regions, such as Sa˜o Paulo, revealed that, similarly to the observed in the Triaˆngulo Mineiro region, economic feasibility factors are extremely important, such as reduced production costs and responsibilities, land availability, as an inheritance by sugarcane producers, and proximity to the sugar ethanol plants. Peres et al. [14] stated that Sa˜o Paulo plants which decided to purchase outsourced sugarcane from selected suppliers, based this decision on production costs from suppliers, since, according to ethanol plant directors, purchasing from them is cheaper than producing. Peres et al. [14] also state that outsourcing allows sugar ethanol plants to shift the responsibility of part of the agricultural production without losing control on the production, which could be different if the sugar ethanol plants signed a

Table 4 e Correlation between the crushing capacity of the sugar ethanol plants, per day, and their quantity of sugarcane suppliers. Sugar ethanol plant crushing capacity (t day1) 1,000e5,000 5,001e10,000 10,001e15,000 15,001e20,000

Quantity of sugarcane suppliers From 0 to 10

From 11 to 50

From 51 to 100

More than 100

1 3 0 0

0 1 1 0

0 0 0 2

0 2 0 0

lease agreement with sugarcane suppliers, transferring to them production control. Since contracts refer to provided services, the third parties are required to produce sugarcane and deliver it to the sugar ethanol plant. Verifying the conditions of land lease for sugarcane production by sugar ethanol plants in Sa˜o Paulo demonstrated, as observed in Ficarelli and Ribeiro’s study [15], that owners consider other causes, as quoted by Dulley and Santos [16]: minimization of risks, difficulties in property management, granting of agricultural financing and purchase of machinery and equipment, and other economic activities developed by owners, which would prevent them from dedicating enough time to their property. Leasing, as highlighted in Refs. [15], is a type of agreement that consists in a temporary appropriation in which landowners render part or all of their property to the individual or company interested in agricultural production. Thus, signing a lease contract, though it may be advantageous the monetary received, the landowners attribute not only economic value to the property, but also sentimental and cultural aspects that affect their decisions, depending on how they were linked to the property. Another points assessed in the study were the steepness of the terrain and harvesting mechanization. According to the Memorandum of Understanding of Minas Gerais State [17], in the projects to be implemented, after 2008, in areas with slopes smaller than 12%, at least 80% of sugarcane with first cut in 2009 should be mechanized. Until 2014, the goal is 100%. For those deployed by 2007, mechanization must be 100% complete by 2014. The analysis of land slope in sugarcane production demonstrated that 60% of the areas of the suppliers and of the mills have 100% of the terrains with slope smaller than 12%, and the remaining areas have 1e10% of their land with slopes greater than 12%. Because of the lack of suitable equipment for sugarcane harvesting in areas with slopes above 12%, in projects implemented until 2007/2008, already licensed, time will be granted for adjustments, according to prior authorization of the Environmental Policy Council e “COPAM”. Correlation between the use of fire and harvesting showed that both actions are directly related. In all areas where manual harvesting is performed, fire is used for cutting sugarcane (Table 5). The sugar ethanol plants and sugarcane farmers that perform mechanical harvesting on their planting areas, do not burn the sugarcane before cutting. As can be checked on Table 5, 9 from 11 ethanol sugar plants use the fire in the harvesting. Despite that, all companies expect to carry out 100% mechanized harvesting within three years. Concerning the form of planting, it was found that in the cultivation areas of the sugar ethanol plants, four companies perform manual planting in over 75% of the total area, as for mechanical planting, six adopt it in less than 50% of the total planting area (Table 6). As can be observed, the majority of the sugar ethanol plants realize manual planting in a great part of their sugarcane fields. Besides environmental issues, worker safety is taken into consideration and questioned by government when rules and laws are established to regulate the replacement of manual planting by mechanical planting. Mechanized planting is safer, but it is still a challenge for the industry of the sector because it is operated with many flaws,

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Fig. 1 e Reasons for vertical integration choice and their respective percentage.

including spaces where the plants do not fall into the machine and botched coverage. The assessment of new plantation areas showed that most of them were located in pasture areas. Two companies have expanded from 51 to 75% and three have expanded more than 75%, in a total of 11 companies. Lower increase was observed in areas of seasonal crops, where seven companies grew less than 75%. Only two companies have expanded in areas of permanent culture into a degraded area (Table 7). The analysis of the type of harvest used in the companies showed that, on average, in the plantation area of mills, mechanical harvesting is performed in approximately 70% of the planted area. In plantation areas of suppliers, it was observed that mechanical harvesting is used in approximately 60% of their area (Fig. 3). It is important to emphasize that, this is an average value. Three plants and three suppliers still adopt 100% of manual harvesting in their plantation areas. Regarding sugarcane cutting, companies use sucrose content and type of variety as the main factors previously evaluated in cutting decision. The types of cut and climatic conditions are also considered, but not as much as the

previously mentioned. When sugarcane is bought from suppliers, in 64% of the cases, the mills decide when plants will perform the cut. Regarding the number of cuts made in the planting areas of industries and suppliers, the average is five cuts. According to the production manager of the Center for Sugarcane Technology (CTC), Luis Antoˆnio Dias Paes, the 2010/2011 sugarcane harvest would have a lower average productivity, since the cane which has passed the fifth cut uses 25% of the harvested area, a percentage that is higher than the usual, which is less than 10% of the area. He explained that this is due to restricted investment in the sector, which has reduced the renewal of sugarcane fields. It does not affect the companies of Minas Gerais, because, as previously reported, the age of the plantations is 3.6 (area used by ethanol plants) and 3.8 years (suppliers) [18].

3.3.

Sustainability

Among various concepts of sustainability, are cited the two more common: Sustainability is defined as a combination of three pillars e economic, social and environmental [19], or as a

Fig. 2 e Reasons for outsourcing production choice and their respective percentage.

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Table 5 e Correlation between manual harvesting and the use of fire in areas of suppliers and mills.

Table 7 e Percentage of sugarcane field expansion by areas of expansion.

Manual harvesting (percentage)

Expansion areas

Use of fire Mills’ area

0% 1e25% 26e50% 76e100%

Sugarcane suppliers’ area

Yes

No

Yes

No

0 6 0 3

2 0 0 0

0 3 1 4

3 0 0 0

conscientious use of natural resources in the present to ensure their existence in the future [20]. Some ethanol plants and sugarcane farmers have the knowledge of the first and some others of the second, but almost none of them have the concept of the Directive 2009/28 used as base in this study. According to Delzeit and Holm-Muller [21], nongovernmental-organizations (NGOs), governments and industries have shown a significant interest in the development of certification for bioenergy. In order to address potential negative environmental and social impact, several initiatives toward sustainability have been established in recent years [22]. The participation of Brazilian ethanol in the international market is still incipient, considering the major production and export capacity of the country. Trade barriers used to be the main hindrance, but now, with new environmental requirements from abroad, in the near future, plants may face another obstacle if they do not prepare and adapt to those standards. It was observed that approximately 72% of the companies develop sustainability programs, including school projects addressing water use, recovery of degraded areas and preservation of native forest resources, restoration of springs, solid waste recycling, fauna monitoring, creation of sewage treatment plant, lined channels with vinasse, distribution of seedlings and reforestation and energy co-generation. At first moment, it seems that the sugar ethanol plants only worry with the environment, forgetting the other pillars of the sustainability, social and economic, but the Directive 2009/28 and other agreements related to the theme are limited at this point. These agreements have a lot more environmental requirements than social and economic, which direct the industries to this pillar. Considering the standards and national and international policies in the area of sustainability, 73% of the sugar ethanol

Expansion percentage Less than 26e50% 51e75% More 25% than 75%

Pastures Temporary crops Permanent crops Degraded areas

2 1 2 0

4 1 0 1

2 5 0 0

3 0 0 0

plants have knowledge about them, and the Directive No. 2009/28 of the European Community is known by eight respondents. This policy is related to the promotion of the use of energy from renewable sources and [5]. Nowadays, only one sugar ethanol plant can meet this policy, but others stipulate an average time of five years to conform this agreement. Some of the necessary adequacies would be: increase of electric energy production that allow its commercialization, reduction of waste, GHG emission control and increase of preservation areas. It is also important the traceability of suppliers of seedlings, fertilizers, pesticides and equipment. The evolution of those suppliers regarding sustainability is also an obstacle.

3.3.1. Environmental aspects 3.3.1.1. Emission of pollutants. The effects of greenhouse gas emissions on the climate are a concern of sustainability. Among the criteria of the Directive 2009/28/EC, greenhouse gas emissions are an indicator of environmental pollution and its control is required. The stabilization of CO2 concentration at low levels has become a goal [23] and a requirement for many countries that import and produce bioenergy. The reduction of it shows that the sugar ethanol plants are placed in the context of sustainability. The analysis of the environmental data revealed that approximately 91% of the surveyed plants fully meet the existing standards for the emission of air pollutants. The remaining plants cannot meet some requirements of legislation, only part of them.

Table 6 e Percentage of manual and mechanical planting in the sugarcane planting areas of the sugar and ethanol distilleries. Percentage of planting areas <25% 26e50% 51e75% >75%

Manual

Mechanical

Company Percentage Company Percentage 3 2 2 4

27.3% 18.2% 18.2% 36.3%

4 2 0 3

36.4% 18.2% 18.2% 27.3%

Fig. 3 e Percentage of manual and mechanical harvesting in sugarcane plantation areas of mills and sugarcane suppliers.

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Although concerned about controlling air pollutants, none of the studied sugar ethanol plants has a system for calculating CO2 emissions, and only 45% of the ethanol plants perform air quality monitoring in the regions where they are installed. It is important to highlight that this action is a duty of the state government, and some industries make it because of legal restrictions related to the environment. Regarding the emissions, all companies have a program to reduce pollutants. However, only a third of the companies have established goals for reduction.

3.3.1.2. Water and wastewater. There is information that most companies capture water from surface sources. The use of groundwater is also significant, but not enough when compared to surface sources. Rain water, municipal supply, as well as other forms of obtaining water, are not used by the surveyed plants. All plants analyzed develop actions for monitoring the quality of surface, aquifer and groundwater. In 44% of the cases analyzed, there is a program targeting at the reduction of water abstraction and effluent generation. One of the plants advanced 60% of this program over the last five years, through the control within the industry and replacement of equipments. All sugar ethanol plants analyzed in this work, located at Triaˆngulo Mineiro, Minas Gerais, Brazil, tend to reduce their water consumption. In 2008, Goldemberg and co-workers [24] reported that water consumption and disposal for industrial use had decreased considerably, from around 5.6 m3 t1 of sugarcane collected in 1990 and 1997 to 1.83 m3 t1 of sugarcane in 2004. Journals of the sector report that this volume, nowadays, must be close to 1 m3 t1 of sugarcane. Regarding wastewater, the companies direct vinasse, a residue with a high content of potassium and other nutrients, for ferti-irrigation and use it as fertilizer. The practice of fertigation is regulated by environmental agencies. It reduces the use of chemical fertilizers derived from oil [25] and helps reducing the emission of greenhouse gases. About 55% of the companies use pipelines to distribute their vinasse and approximately 37% use lined channels. It is noteworthy that the distribution system is mixed, i.e., companies can use more than one means of distribution. The discussions during the interviews demonstrated that companies tend to use pipes. One third of the surveyed plants concentrate vinasse. About 70% of the sugar ethanol plants develop preventive monitoring of agricultural areas, where residue is discarded, and none of the surveyed companies showed contamination in these areas. According to Smeets and co-workers [25], compliance with legislation is essential, and the monitoring of the soils of agricultural areas is important because of the environmental degradation caused by ferti-irrigation in the past. The percentage of reused water in the industry was analyzed and it was found that five of the sugar ethanol plants surveyed have reused more than 50% of the water, while three of them reuse less than 10%. The assessment of the percentage of reused water in the field shows that this value is lower than that of the water reused in industry. All companies have less than 50% of water being reused in the field. As for the use of fresh water, it was noted that six of the companies use less than 50% of it in the process. It

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demonstrates the need for improving practices for reusing and recycling water and reducing its industrial consumption.

3.3.1.3. Solid waste. The analysis of the information on waste showed that solid waste (cake and ash) is present in all industries, and that most of it is directed to the fields. The socalled filter cake, rich in phosphorus, is recovered and used as organic fertilizer. Other types of generated waste (not directly from the production process) are paper, plastic, packaging and personal protective equipment, which are sent for recycling centers and/or specialized companies. Despite the large amount of waste, about 20% of the industries have not developed yet a program to reduce it. Analysis of the data concerning the generated biomass (bagasse and straw) revealed that all plants direct this material for energy production. The surplus biomass is sold to other industries in the region. One of these plants, for example, sells 20% of its pulp for a juice factory to feed its boiler. All surveyed sugar ethanol plants send most of the pesticide and fertilizer packaging to the collection stations of the actual input suppliers. Other destinations cited were associations, recycling and collection centers. 3.3.1.4. Environmental policies. With respect to environmental practices, it was observed that 91% of the companies develop an environmental policy program. Permanent preservation areas, transport of vinasse, monitoring of irrigated areas, preservation of biodiversity, reduction of contaminated solid waste and the adoption of environmental education programs were some of the actions mentioned. Regarding compliance with the environmental standards for agricultural areas, all companies meet 100% of the law. Only two plants do not fully meet the standards for environmental protection area, since less than 20% of the land of these companies is used as preservation area. Concerning environmental certification, 45% of the companies have some kind of certification, and two plants have the ISO 14001 certification, while 45% of the industries reported to have the Private Reserve of Natural Property (RPPN ) certification. These reserve areas intend to meet the requirements of the Brazilian Forest Code with respect to the Permanent Preservation Areas (APP) and Legal Reserve. The evolution of the results of the adoption of environmental policies was reviewed only by five interviewed companies. One company reported that no results had been achieved; three others reported that the development is in line with expectations and another company declared that improved productivity was observed in RPPN. 3.3.2.

Social aspects

The analysis of the social data revealed that all the surveyed plants are concerned about the benefits for the region. The main points mentioned were: local economic growth, job and income generation and improvement of life quality. In pursuit of these benefits, some industries cited having partnerships with the state/local government, aiming to propose public policies directed to land accessibility and the viability of family farms to the cities providers of skilled labor for agribusiness.

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In relation to social programs, all the plants aim to promote education, leisure, culture and sports, in addition to making donations. Internally, they provide health care service and food supply for employees and their relatives. As for labor, 90% of the plants are aware of the conventions of the International Labor Organization and comply with it. All employees are properly registered. The migration of workers to sugarcane producing regions is very common and is considered a socio-economic problem; migration occurs on temporary basis, during harvesting season [26]. The present study found that migrant labor is little used in the sugar ethanol plants of Minas Gerais; only 36% of respondents reported having migrants in their ethanol plants, ranging from 1 to 60% of the total number of employees. The ethanol plants comply with the “National Commitment to improve working conditions in the sugarcane sector”, created in 2008, in an agreement among all Brazilian ethanol plants, aiming at the cooperation between the private and public entities represented in this act, to carry out actions to improve working conditions in manual cultivation of sugarcane, thus valuing and spreading exemplary business practices [27]. Thereby, some criteria are established in this agreement concern the work contract, the employment of migrant workers, the transparency in the measurement of production, the health and safety at work, the transport, the food, the union organization and collective bargaining and the accountability in community development. As stated in Azadi et al. [28], lots of jobs will be lost due the mechanization of the harvesting process, which is a problem to the sector. However, government and the ethanol plants are giving support to those who were fired from the cane cutting activity, by creating retraining programs to include them in other agribusiness sectors. It was found that 64% of the plants adopt these programs, including aptitude tests in several areas for relocation of employees, training carried out by SENAI, Brazilian National Service for Industrial Training Organization, and mainly, training for preparing mechanical operators. Among the plants that adopt this program, the percentage of laid-off workers who were reclassified varied considerably. About 80% of the plants do not monitor the replacement of these workers in the labor market, but they affirm that most employees who had participated in the program obtained a regular job after being trained.

4.

Conclusion

The results obtained and discussed demonstrate that the plants are in a unique moment of capacities expansion and adjustment to sustainable practices. Sugarcane farmers are also adjusting to such requirements in order to meet the demands of the sector. Efforts and investments are being made in favor of sustainability, mainly focusing on environmental and social issues. Sustainability was thoroughly discussed during information collection, and it was possible to determine which requests from the international and national guidelines are being prioritized in the adaptation process. Currently, the plants are not only mindful with their internal practices, whether they are sustainable or not.

Rather, they are much more concerned about the practices of their suppliers. This has led to changes in the countryside, not only in land use, but in the recovery of reserves and improvements in the agricultural practices and water use. Sugarcane burning is no longer a concern, and the industry moves at a fast pace, so that, in 2013 or 2014, all cane cutting will be mechanized. The professional training programs developed and improvement in payment and working conditions demonstrate that the sector is not only prepared for changes in laws, but also in sustainable practices. All the information collected and discussed reveals that the future prospects for the meso-region of the Triaˆngulo Mineiro are excellent. The region is under development, which has attracted the attention of the sector. Although the necessary changes are at a slow pace, the sugar ethanol plants and sugarcane farmers have been adapting for (economic, social and environmental) sustainable growth.

Acknowledgments We acknowledge the Secretaria de Estado de Cieˆncia, Tecnologia e Ensino Superior of Minas Gerais (SECTES) for the financial support.

Appendix A. Supplementary material Supplementary material associated with this article can be found, in the online version, at http://dx.doi.org/10.1016/j. biombioe.2013.08.006.

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