The combination of rural agriculture production and industrial refinement is unique in how one single crop can create millions of jobs and serve as a core pillar in Brazil’s economy. Brazil is the largest producer of raw sugarcane in the world which is refined into refined sugar and ethanol, (Brazil is the second largest producer of biofuels in the world). It produces roughly 37% of the world’s sugarcane and is a major exporter of sugarcane. As such, there is extensive research and reports on the production and impact of sugarcane, especially when looking for socioeconomic impact. We wanted to choose a country where sugarcane was not only majorly produced but also had major impacts throughout the country, which led us to Brazil.
Sugarcane was first brought to Brazil by the Portuguese in the 15th century. At the time, Brazil was a colony of Portugal, and due to sugarcane's high value, Portugal created sugarcane plantations throughout Brazil. By the 17th century, Brazil was the biggest producer of sugar. This title was eventually lost, but regained in the 1970s due to a program called Programa Nacional do Álcool or ProÁlcool. ProÁlcool was created in 1975 to promote the use of ethanol from sugarcane as an alternative fuel. However, due to the worldwide demand for sugar, Brazil imports large amounts of ethanol to reduce the competition between sugar and ethanol for sugarcane. However, Brazil is still the top the world's top sugar producer and second largest ethanol producer.
As the need for sugarcane grew, so did its socioeconomic impact on Brazil. The increase in the sugarcane industry in Brazil contributed to benefits in employment and income. There is a positive relationship observed between sugarcane activities and per capita income and income distribution. It has also been found to mitigate the effects of greehouse gas emissions.