The new configuration of production structure brazilian sugarcane industry: overview and prospects

The Brazilian sugarcane industry has attracted foreign investment since 2003/2004. The factors, that have stimulated this movement, are related to the prospects for the consolidation of an international market ethanol, expanding external and internal demand and the rising price of fossil fuel. Another factor is the competitiveness of Brazilian ethanol compared with other raw materials used in other countries. This paper aims to characterize and analyze the new configuration of the productive structure of the Brazilian sugarcane industry after the movement in foreign capital. The presence of foreign capital can change the dynamics of the sector, leading to the strengthening of the links in the production chain (trade linkages). Furthermore, the presence of foreign capital from the entry of transnational enterprises can raise research and technological development in the sugarcane industry, giving a new impulse.