The importance of the bagasse market for the sugarcane economy and the economic impacts on industries connected

• Grant number: 13/24497-1
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: February 01, 2014
• End date: January 31, 2015
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Roberto Arruda de Souza Lima
• Grantee: Andre Felipe Danelon
• Host Institution: Escola Superior de Agricultura Luiz de Queiroz (ESALQ). Universidade de São Paulo (USP). Piracicaba , SP, Brazil

Abstract

The bagasse from sugar cane is one of the most abundant byproducts of sugarcane industry , accounting for about 30 % of the grinding mills . This by-product has a wide range of uses , being cogeneration of electricity , the production of ethanol from second generation ( 2G ) and steam the most discussed applications further in the industrial sector . Thus, the bagasse has no usage options limited to sugar-alcohol sector and is interconnected with other industries that use it in boilers to generate steam . However , studies on the bagasse market is still incipient and the knowledge about the characteristics of this market do not allow the understanding of its importance and its impact on the agribusiness sector. The characterization of bagasse market seeks to highlight the importance of this by-product and have information to evaluate the impacts caused by the advent of 2G ethanol and cogeneration of electricity spread more broadly. In this new scenario , bagasse from sugar cane can be internalized in the chain of sugar and ethanol production , which can reduce the supply of bagasse as a substitute for wood chips to generate steam , affecting many industrial activities. Thus , through interviews with mills and other market agents , questionnaires in mills and literature review , the aim is contribute to the understanding of bagasse market and its importance for different agro-industrial activities , adding another tool to planning of the firms and the public sector, in the pursuit of achieving their interests with greater precision.