INTRODUCTION

INTRODUCTION
Sugarcane history in Brazil starts along with its colonization, from an expedition in 1532 led by Martin Afonso, and lasted for very long as the central axis of colonial economy. Sugarcane cultivation played a main economic role in Brazil from the 16th century till mid 17th century, when its importance start diminishing due to the higher availability of sugar worldwide, caused mainly by the Antilles and sugar beet production in Europe. (ANDRADE, 1994, p.19). However, from the 1970's on, the industry gains a new impetus thanks to a dynamic, modern and highly efficient production system, adequate to succeed in a new globalized scenario. Nowadays, this graminiea stands out due to its traditional role, socioeconomic relevance, and lately - its energetic importance. Sugarcane importance to economy derives from its several uses and applications. There are uncountable derivates and subproducts from this plant such as: sugar, alcohol, molasses, spirits, baking yeast, feed proteins, fertilizers, fuel to thermoelectric generators, etc.. Besides these multiple uses, sugarcane is an important source of income and jobs to a relevant part of population. (SZMRECSNYI, 1979, p. 41). From the energetic point of view, Brazil is a pioneer in ethanol production. Ethanol used to be considered just a subproduct of sugar industry until mid 1970s, when it has been taken to assume a very important role as an alternative source of energy and to diminish dependency to oil imports, thus, it has received massive private investments in research. This change in energy management strategy which lasts to date, besides being a clean source of energy, adds up to the improvement of air quality and brings along income to farms and creates many jobs. Furthermore, ethanol contributed to the development of automobilistic technology that brought forth the flex fuel cars (cars that drive either with gasoline or ethanol and/or any combination of these) a milestone to the development and use of ethanol as a clean and renewable fuel.

Sugarcane Production in Paran Brazil. An outlook of Family Farming in a Booming Industry.

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It all adds up to the evident and relevant importance of sugarcane to Brazilian agriculture, as well as the importance of sugar and alcohol industry, mainly to adress the energetic issues. Nonetheless, during the present decade there were substantial changes and an period of consolidation in the international market of ethanol, these are fundamental and a vector of dynamism to the sugarcane industry. From these evolutionary movements questions arise concerning the real implications to the agents of this process. The sugarcane sector undergoes a deep transformation process, whether by the diminishing influence of State on its issues, whether by the insertion of new technologies. In this scenario there are changes in the interactions of the main agents resulting in more and more complex social issues. This dynamics of sugarcane industry changes the social, economic, political and environmental life style of producers, mainly the smaller producers, affecting their interaction to the land, family and property. At this stage of development of the industry, which could be considered as a new era for sugarcane, new trends are set by this new context.

1.1 Background Information

1.1.1 The Sugarcane Industry in Paran
The development of sugarcane industry in Parana was very conservative, led forth strongly connected and conditioned to the actions of the State on the sector. Shikida (2005, p.46) points out that processors (mills and small mills) were quite rudimental and capital invested was much lower than the amounts invested in more traditional regions. Processors used to produce sugar and some derivates such as: alcohol, rapadura and spirits. According to Shikida and Alves (2001, p. 126) sugarcane industry used to focus on local markets, an objective not able to be fulfilled at content, once Paran frequently had to import sugar from other regions, mainly from So Paulo.

Sugarcane Production in Paran Brazil. An outlook of Family Farming in a Booming Industry.

INTRODUCTION
Figure 1: Map of Brazil with Paran in detail.

Source: Raphael Lorenzeto de Abreu (Wikipedia)

The first sugarcane plantations in the state were planted in the 17th century, by the coast. The first state sugar mill was established in Morretes, in 1878. It did never ever run due to difficulties in getting workforce and sugarcane to it, once it was located in between Curitiba and Paranagu, on a very hilly and hard to reach region. Another unsuccessful attempt of planting sugarcane on the coastal areas of the state was carried out by Usina Malucelli in 1947, this unity was in only operation until 1958 (ANDRADE, 1994, p. 54).

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The process of planning the management of the sugar industry nationwide start with the creation on the Sugar and Alcohol Institute (IAA1). This government initiative had very modest effects in Parana. On this matter, Shikida (2001, p.7) points out that the state had until 1935 about 316 sugar mills (1.3% of all sugarcane mills in the country) producing sugar and its subproducts. Among of the main attributions of IAA, we have: ... The government, through and by IAA, used to set production quotas by state, by processing unity and by producer, set the rules to export, manage the prices of sugar and alcohol, influence the domestic market, set prices and monopolize purchases as well as regulate the transportation, handling and storage of sugar." Szmrecsnyi (1979, p. 180). Concerning the products of sugar industry, alcohol production in Paran started and an effect of low prices of sugar at world market after Second World War. According to Andrade (1994, p.55) one of the main reason to low prices was the lack of control of production quotas of sugar by the State from the 1940's on. In order to minimize the loses, the State released the decree # 25.174-A. According to Szmrecsnyi (1979, p.220) this decree stimulated the production of alcohol and started to offer bonuses to producers as an increment to the price of produced alcohol. This initiative motivated the relocation of sugarcane production from the North-eastern to the Center-southern region of the country. Anyhow, sugarcane production in Paran just became important to the economy of the state when the sugarcane industry of So Paulo overflowed into Paran (SHIKIDA, 1997). Thus, sugarcane industry in Paran started at the "Norte Pioneiro", first settling on the city just along the border with So Paulo, such as Andir, Bandeirantes, Cambar, Jacarezinho and Porecatu, among a few others, where the first mills have been built. (RISSARDI JUNIOR, 2005, p. 35).
1

IAA was created on June 1st 1933 by the decree # 22.789.

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On this aspect, Dias (2006) cites that the first mills that started operating in Paran, thanks to the decree # 17 of September 3rd 1942 were Usina Bandeirantes e Central do Paran. In 1943 Usina Bandeirantes acquired 2.500 hectares of land and produced 95 metric tons of sugar during its first year of operation. Central Paran start its plantation in 1944, has produced 671 tons of sugar during the crop period of 1946/47. In 1947 Usina Jacarezinho starts producing sugar and produces 1.130 tons. Usina Santa Terezinha, the first sugarcane mill of Group Usacar, was estabilished in Maring in 1955, firstly producing only spirits, and produced 312 tons of sugar in 1963. (See also "Timeline of Sugarcane Development" in Annex) In this region (which lays underneath the tropic of Capricorn) sugarcane has found good conditions for expansion. Among those conditions some shall be pointed out, such as, the fertility of the soils, the climate (expect for the sporadical frosts), the vicinity to the sugar pool of So Paulo and its highly technological producer (SZMRECSNYI, 1979, p. 79). An additional element to the establishment of sugarcane plantations in this region is due to the fact that sugarcane became a rentable alternative to take over the lands previously dedicated to coffee production, once coffee was going through a world market crisis. As effect, during the 1970's with the diminishment of coffee areas there were many changes in the agriculture environment in the region. The expansion of sugarcane started more effectively after the benefits granted by the State due to the implementation of a National Program for Alcohol (PROLCOOL). In Paran things went by the rules of the program and it became on of the most important states in term of benefits received from this program (SHIKIDA and BACHA; 1999, p. 69).

1.1.2 PROLCOOL and its effects on Parana

PROALCOOL2 was created during a period of energy crisis (started in 1973) that simultaneously met an overproduction of sugar. According to Shikida (1997) the main reasons for the implementation of PROLCOOL were: worldwide sugar crisis; external

Prolcool was created by the decree 76.593 of November 14th 1975.

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dependency for energy, national security; a problematic international situation concerning oil and its consequences on the payments balance. Thus, it became possible to intensify alcohol production, firstly as an additive to gasoline (anhydrous alcohol) and then also to be used in cars propelled by alcohol only (hydrated alcohol). This program figured as the key factor for sugarcane expansion in Paran, changing the role of agriculture in the state. Among the main achievements of the program in Paran, Andrade (1994, p. 60) points out the construction of 28 distilleries from 1975 to 1989. This process was intensified mainly after 1979, when many autonomous distilleries were implanted and the cooperatives started investing in sugarcane plantations and mills. This factor generated a fast moving chance in the domination crops of Northern Paran due the expansion of sugarcane. During this period Paran has seen a new flow of investments, as well as the expansion of sugarcane that chanced significantly the agriculture scenario of the state. PROLCOOL created the financial and structural conditions for this new activity, contributing to the diversification of crops in the state. Furthermore, with the presence of new processing unities there were remarkable changes in the economic and social relations in the cities where they were built, resulting in a new agriculture and industrial realm generated by the sugarcane processors.

Sugarcane Production in Paran Brazil. An outlook of Family Farming in a Booming Industry.

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Figure 2: Satellite Image of Paran with sugarcane plantations

Source: Canasat.

1.1.3 Sugarcane Sector after the deregulation.

After the a golden period of PROLCOOL and the crisis that came just after, the sugarcane sector went through a gradual deregulation process starting with the extinction of the Sugar and Alcohol Institute (IAA). With the more liberal policies adopted, the sector went through several changes in the structure of the productive system, in order to increase the competitiveness of Brazilian sugar and alcohol in the international markets. IAA was extinct on March 15th 1990 by the decree #151. Shikida and Bacha (199, p. 83) point out as the motives of expansion of sugarcane sector in the centre-southern region of the country, mainly in Paran, the gains of agricultural and industrial productivity of this segment. This higher productivity was achieved thanks to technological and biological innovations, with new varieties of sugarcane from several research institutes; physic-chemical innovations, as the use of liquid fertilization with vinhoto and new techniques of alcoholic fermentation; mechanical innovations, with the
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INTRODUCTION

use of new tractors and implements specifically developed for sugarcane cultivation; and innovations related to the management of agricultural and industrial production and the use of bagasse in the cogeneration of energy among others. The process of deregulation reflected deeply in the reformulation of the sugarcane industry. The absence of official organisms, such as the IAA, the fiscal crisis of the State and the dismantling of PROLCOOL pushed the players of the sector to find ways to adapt themselves to be inserted into a new market scenario. This scenario of oscillations, risks and productive restructuring did not interfere in the grown and expansion the sugarcane industry, mainly in Paran, especially concerning to international markets. Nowadays sugarcane still plays a fundamental role to development. According to the Agrianual (2006) Brazil is the biggest world producer of sugarcane, responsible for 31% of world production and also the biggest exporter, trading 38% of international market. The planted area during the crop of 2005/06 was 5,495 million hectares producing 423 million metric tons of sugarcane. This production was converted into 27.22 million metric tons of sugar and 15.25 billion litters of alcohol. If at one hand Brazil consolidated its role as the biggest and most important producer of sugar as a commodity, on the other hand it has to face a totally new dynamics of competition. The state of Paran can be considered one of the biggest producers of sugarcane, sugar and alcohol in Brazil. During the crop of 2005/06 it has produced 24.809.178 metric tons of sugarcane (second biggest producer in Brazil), 1.503.241 metric tons of sugar (third biggest production in Brazil) and 1.031.831 m of alcohol (second biggest production in Brazil). Paran exported 1.266 thousand metric tons of sugar and 207.386 m of alcohol of this very same crop period (DIAS, 2006). This performance of sugarcane sector is obtained using 2% of the arable land in the state. The sector is one of the main pillars of the state economy, generating wealth to more than one hundred municipalities and creating jobs to more than half million of people (ALCOOPAR, 2007).

Sugarcane Production in Paran Brazil. An outlook of Family Farming in a Booming Industry.

INTRODUCTION

According to Shikida (2005, p. 47), the sugarcane industry in Paran has 27 modern mills and distilleries. These companies are economically active in 126 municipalities in the state, generating more than 74000 direct jobs on an area of 333.555 hectares. Sugarcane production in Paran has been developing along the peculiarities of the sugarcane sector, thanks to investments and expansion of the planted area and the volume of cane; also helped by the evident growth in productivity (average productivity: 79 tons/hectare) and the improvement of cane quality.

1.2 Problem Statement

Thinking deeply about sugarcane it's possible to notice its historical importance and its multiple uses and application developed with time, Brazil stands out as pioneer in the use of its products and subproducts in a modern energetic matrix. As well as its also possible to analyze the role of the State and its effects on the sector, verify its importance as source of income and jobs, the technological development of the players of this sector, Brazil holds the position of leader in production and exporter of sugar and alcohol and there is plenty of opportunities in the domestic and foreign marketplaces. There are multiple fields of analysis in this dynamic and propelling industry. This study analyzes the relation of the agents of these processes. On the one hand, the sugarcane mills go through a period of expansion based on technological innovations and free market opportunities. On the other hand, family farmers, for long time mentioned merely as small farmers or low income farmers. With this new terminology comes along the recognition as a new social class with a specific social role and the availability of resources, specific agricultural insurance mechanisms that enable them to fit into a globalized context diversifying their production. This study intends to delineate the interrelations of these producers in a dominant economic system. Neves (1981, p. 15) postulates that there is a submission of smaller sugarcane producers to commercial, industrial and financial capital. This combination of social forces arranged through time enable the incorporation of small producers in thins

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process, yet with still with some limitations. According to Neves (1981) the interaction of these agents changes depending on the historical context and different regions.

1.3 Objectives of the Study

This study intends to verify and analyze the importance of sugarcane as a source of income to small producers, in this specific case, to family farms. The new dynamic sugarcane scenario created by the deregulation of the sector (a new period where the State does not set the rules of the sector anymore) and by the recognition of ethanol as a viable and renewable source of energy did act as a propelling force of the industry, this pungent expansion made it enable the adoption of sugarcane to many farmers that previously would not comply to the requirements of sugarcane production. This study tries to contextualize this new scenario to small producers, by means of questionnaires applied to family farmers in the northern central region of Paran during this current year.

1.3.1 Specific Objectives of the Study

The specific objectives of this study are: Draw an outlook of family farms producing sugarcane in the study region. Analyse and delineate a specific profile of family farmers that have adopted sugarcane. Evaluate the main aspects of the driving force of expansion of the industry within the spectrum of the changes it brought to family farmers. Delineate a new scenario created by the expansion, deregulation the effects that derive thereof.

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1.4 Justification
By analyzing the evolution of the sugarcane industry in Paran from the point of view of the relations of the partakers of this process, its expected that the industry might benefit from this study. There is plenty of literature on the subject, focusing these relations of work, from social, political and financial aspects. This study intends to apply the knowledge already published about the sector to analyze the centre-northern region of Paran specifically on the concerning the interaction of the agents: processors and small producers. The importance of sugarcane as a source of wealth and jobs in Paran is well known, as well as the numerous contingents of family farmers and their importance in quantitative figures in the national agriculture scenario. Besides the numerous contingents of family farmers and the importance of sugarcane to the economy of Paran the presence of cooperatives in the sugarcane sector shall also be observed and analyzed. Thus, the selected area of study represents an unique region, where it is possible to analyze the sector from several different points of view.

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SMALL FARMERS AND FAMILY FARMING

CHAPTER TWO SMALL FARMERS AND FAMILY FARMING

This chapter draws the characteristics of the small farmers and family farmers, taking into consideration the economic importance of the producing families and the social issues inserted in this context. The theory and conceptual bases to determine the definition of family farmers is the pioneer study carried out by INCRA/FAO. Identifying the family farmers and its importance to agriculture, its expected, by means of questionnaires, to collect the necessary data to analyze their relevance to the sugarcane sector specifically and the interest of processor on these producers.

2.1 Definition of Small Farmers and Family Farmers

The traditional approaches, conditioned by models of historic formation, had never focused precisely the issue of the genesis of family agriculture, drawing a quite imprecise definition thereof. According to Abramovay and Piketty (2005, p. 57) the most commonly used terminology was: small production, low income production, subsistence farming and non-commercial farming. These definitions are closely connected to an idea of poverty and therefore those groups had always been assisted only by compensatory measures. Lamarche (1993, p.179) postulates that this terminology is fully impregnated by the colonial origins of Brazilian economy, sustained by huge properties, monoculture targeted to exports and sustained by slavery. For quite a long time, the position of small land holders has been analyzed taking only the agriculture issues into account. This point of view would take as an irrefutable truth that large scale production farms are much more efficient than smaller ones and family farming. On this aspect, Neves (1981, p. 21) criticizes the dichotomy of the definition of family farming and commercial farming considering them too much simplistic and reduced, in spite of recognizing that there are divergent economic interest of these agents.

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SMALL FARMERS AND FAMILY FARMING

The definition of small farmers and family farming is very important nowadays in order to support the debate involving the theme, whether on the political, economic, cultural or social realm. Therefore, this debate, besides its intensity has generated several concepts, interpretations and proposals that change according to the sector that has proposed the discussion. (INCRA/FAO, 2000, p. 7). In the mid 1990's the issue became more and more important, once the definition of family farming was supposed to be flexible enough to comprehend a vast diversity of forms of organization of agriculture production. Among these definition created, its important to point out the following definition: Family farming production, as it is conceptualized, refers to an agricultural production unit where the property and the workforce are tightly connected to the family. The interdependency of these factors in the operation of the property incorporates some more abstract and complexes concepts, such as transfer of property and the reproduction of the activities." (LAMARCHE, 1993, p.15). In order to build up a more precise and meaningful definition of small farmers and family farming, some studies were carried out from 1996 to 1999, by a cooperation project conducted by the National Institute of Colonization and Agricultural Reform (INCRA) and the Food and Agriculture Organization of the United Nations (FAO). According to INCRA/FAO (2000, p. 6) these studies were carried out based on the methodology of agriculture systems developed by the French School of Agriculture Studies, using the database collected by the Agriculture Census 1995-1996, carried out by the Brazilian Institute of Geography and Statistics (IBGE). Thus, family farming has been defined based on the management of the property: ... in family farming, the management of the property and its investments are decided by the family (individuals that share blood bonds or family bonds acquired by wedding), most of
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the workforce is spend in the farm, and the production factors (although not always connected to the land) belong to the family and will be transferred to the next of keen in case of death or retirement of the managers of the property. (INCRA/FAO, 2000, p. 7). The results of this research indicates that Brazilian agriculture has a higher diversity in relation to the its environment, the situation of farmers, the suitability of soils, the availability of workforce, etc., and not only in relation to different regions, but also within a single region. INCRA/FAO (2000, p15) also emphasizes the important of small farmers and family farming to national agriculture. This study postulates that 4.139.369 properties fit to this definition of family farming (85% of the agricultural properties in Brazil). Its also important to point out that 30% of these properties are smaller than 10ha and 39.8% of them are smaller than 5 ha. These family farming unities summed up an area of 107.8 million hectares (30.5% of total), and produce R$ 18.1 million of Gross Value of Production (37.9% of total GVP) and they receive R$ 937 million as agriculture investments (25.3% of the amount designated to the agriculture sector).
Table 1: Brazil Number of Farms, Gross Production Value (GPV) and Credit Use.
Number of % of Percentage Area (ha) (thousand) % Area of Total GPV (mil R$) GPV of Total Credit (1,000 BRL)

CATHEGORY

% of Credit

Farms

FAMILY FARM COMMERCIAL Religious Prop. Public Entities Not Identified TOTAL

4.139.369 554.501 7.143 158.719 132 4.859.864

85,2 11,4 0,2 3,2 0,0 100,0

107.768 240.042 263 5.530 8 353.611

30,5 18.117.725 67,9 29.139.850 0,1 1,5 0,0 72.327 465.608 959

37,9 61,0 0,1 1,0 0,0 100,0

937.828 2.735.276 2.716 31.280 12 3.707.112

25,3 73,8 0,1 0,8 0,0 100,0

100,0 47.796.469

Source: Agriculture Census 1995/96 IBGE Elaborated by: Technical Cooperation Project INCRA/FAO (2000)

Besides fixating numerous contingents in the rural areas, thus diminishing the migration to urban areas and the generating income to the families, there are other factors pro family farming. According to Gualda (2007, p. 3) there are several positive externalities derived from the its development, such as: guarantee of more sources of biodiversity,

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improvement of food safety, preservation of scenery characteristics, protection of cultural capital, strengthen of family relations, contention of rural exodus, among others. As an attempt to adequate to this new reality, family farming has achieved relative success. Thus, in order to minimize the impacts caused by the model of modernization of Brazilian agriculture, some policies have been developed resulting in changes in the legal, financial and economic realms. In the financial realm, the most important change was the implementation of the National Program to Strengthen Familiar Agriculture (PRONAF)3. For Mattei (2001, p. 13) this initiative was implemented in order to solve the shortage of resources for small farmers, once rural credit has always privileged bigger producers by demanding warranties typical of big farmers, hardly complied by small family farmers. Due to the heterogenic diversity of the sector, with the implementation of Pronaf the Ministry of Rural Development (MDA) through the Secretary of Family Agriculture (SAF) has created 4 groups of beneficiaries (A, B, C and D) depending on their income and family composition. According to the MDA (2004, p. 22) the beneficiaries can be: traditional family farmers, families settled by Rural Reform Programs or state and municipal settlers acknowledged by INCRA, Forest Extractivists, Quilombolas, Riverside Settlers, Native Indians and Rudimental Fishers among others. There is an established criterion for every category concerning limits of land and gross income (referring to the last usual agricultural year) and external work force is limited to two employees. In this new context, sugarcane industry with a less intrusive State, a new stage of development and many new opportunities that arise seem to be quite promising. As well as, the acknowledgement of the State and society to provide the adequate resources in order to make it possible to family farming to become modern and diversified. Following this way of thinking, this study intends to analyze the contribution of familiar farming to the present expansion of sugarcane and how sugarcane can be a profitable alternative for smaller farms.

Pronaf was created on June 28th 1996, by the decree # 1.946.

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In its preliminary study, the INCRA/FAO project did not mention sugarcane as one of the most common crops cultivated by family farmers. But this very same study did displays the importance of family farming concerning the amount of family owned and operated property and its capillarity. Thus, probably, many family farms contribute to development of sugarcane in Paran. A field research, by means of questionnaires, will bring the necessary data to analyze the interaction of family farmers and sugarcane mills. Sugarcane demands a lot of workforce, especially in harvest, that configures usually as a limitative factor to many small landholders or families that rely on workforce from the family only, or do not have the necessary machinery to consider the sugarcane cultivation. Workers can be hired and machinery can be rent in case the crop is profitable enough to support these extra costs. In times of expansion sugarcane processors have developed new production systems. In these new methods of production and management the processor provides all the means of production from soil preparation to harvest, i.e. farmers just have to provide the land; all other inputs and resources are provided and managed by the processors.

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CHAPTER THREE METHODOLOGY

This study is a field research based on data collected by questionnaires. Gil (1990, p. 58) considers that a field research as a deep and exhaustive study of a few objects, in a manner to enable a deep knowledge of a certain subject, a task that would be hardly achieved by other methods other than that. Among the benefits of a case study offers to the researcher, a few can be strained: the flexibility; the possibility to view the issue from several different points of view in order to compose an holistic panorama thereof; the simplicity of procedures of data collection and analysis; and the reduced cost when compared to other research methods. The difficulty many researchers face in generalizing and applying the data, present therefore a shortcoming of the method. (GIL; 1990)

3.1 Study Area

This study was carried out in the Northern Central Region of Paran, an area with X municipalities, Y of them produce sugarcane. Sugarcane is a very important crop to the region that counts with most of the processors of sugarcane in the state: 9 sugar mills, 5 of them are cooperatives and the other 4 are private owned and operated. According to ALCOPAR the region produced 34.48% of all sugarcane in Paran in 2005, the most representative producing region in the state. This region has as a higher level of agro-industrial integration and traditionally produces commodities targeted to export markets, this integration and better markets opportunities enable higher investments and productivity levels than other regions focused in the domestic market. (IPARDES, 2004).

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3.2 Sample Selection

There are 9 processors of sugarcane in the northern central region of Paran (Detailed map of regions in Annex). 5 cooperatives and 4 private, 2 cooperatives (Cocari and Nova Produtiva) are indeed distilleries, producing only alcohol. Farmers were selected from a list of sugarcane producers provided by EMATER/SEAB. As this study focus on farming families, it selected only farmers to whom farming represents at least 90% of family income, and which the size of own land does not exceed 150 hectares. This sampling was subdivided into 5 strata according to the counties: Maring, Mandaguari, Jandaia do Sul, Colorado and Astorga. Farmers where listed and given a random number (generated by excel) and ordered. The total known population of the sampling frame 189 and from 45 farmers respectively to the strata were selected (12 in Maring, 9 in Mandaguari, 9 in Jandaia do Sul, 12 in Colorado and 9 in Astorga), a total of 45 farmers. It was hard to find them once most of them don't live on the farms, some were just not willing to answer to a questionnaire, and some were willing but did not have enough data to answer to it. In case of failing to answer to a questionnaire or insufficient data, another farmer would be selected from the very first random selection. Unfortunately, due to time and budget constrains to get new interviews, the sample size had to be reduced to 39 individuals (10 in Maring, 6 in Mandaguari, 8 in Jandaia do Sul, 9 in Colorado and 6 in Astorga), which still seems to be representative to the analyses proposed by this study.

3.3 The Variables Observed

The data collected represents a picture of the 5 last years of farming of the interviewed farmers, i.e. data of the results obtained and/or situation from 2002 to 2006. As it can be seem in the questionnaire in the Appendix the data collected try to delineate the evolution and transformation in the sector in the last years. Appendix XX also brings a detail description of data collected field by field.

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3.3.1 Area
The questionnaire captures the usage of the land in the predefined time spam. Thus it displays the evolution of sugarcane production on the farms as well as its impacts on the other activities and on the structure of the farm. There are variables that reflect availability of area, usage of are according to activities, ownership of area. Area will always be expressed in hectare despite of other measurement scales.

3.3.2 Rented Area

Besides capturing the activities on the owned land the questionnaire also captures activities on rented land. Its quite common that small farmers, especially those who own enough machinery, rent land of other owners to cultivate their crops.

3.3.3 Reason of Adoption of Sugarcane

The reason farmers perceive as decisive for adoption of sugarcane according to their individual needs. Profitability, Safety and Diversification are designated as options, other reasons might be mentioned.

3.3.5 Distance from Mill

This variable will delineate an area of viability for planting sugarcane, as transport costs from field do plant is a very important factor in decision taking. The variable will also delimitate the area of actuation of processing plants. Distance expressed in kilometres.

3.3.4 Machinery
Machinery can be an indicator of farm activities. This information was collected to verify the presence of machinery on farms and how sugarcane influence than, especially due to the fact that many sugarcane processes buy sugarcane on 5 years contracts. These contracts bind farmers to sell their production to the contractor during this period and, in
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some cases, the contractors take over the production, in effect, when it happens it seems the areas designated to sugarcane has be rented in a different partnership relation. Tractors are expressed in unities and power, implements in quantity and variety.

3.3.5 Partnerships
Partnerships are fundamental for sugarcane production, especially in the case of family farms. The adoption of partnership is an interesting factor to take a look at, once it also influences adoption rates.

3.3.6 Other Crops and Pasture

The questionnaire captures the use of land to other areas and points out the two main crops cultivated (in Paran there are two harvest of seasonal crops a year, i.e. mainly maize and wheat can be cultivated also during winter). It also captures the usage of pastures and if some of the area is used for commercial poultry.

3.3.7 Forest
Brazilian legislation obliges farmers to keep areas of forest on their farms. Legislation demands at least 20% of total area of a property to be covered with native species (or similar ones officially approved), water sources and rivers have specific legislation for protection. This influences directly in the availability of arable land, the compliance of these requirements and an evolution of the scenario is captured by forest related variables.

3.3.8 Productivity
Productivity is also measured as a time series variable, separately for own and rented areas to enable comparison with other areas during the same period. Productivity is measured only for sugarcane and it is always expressed as tons per hectare.

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3.3.9 Detail description of the family

As family farming is the main focus of this study, a detail picture of families was captured, display its composition by gender, age, activity in the farm or out of it as well as level of education of its manager, in the case, the person the family judges as the farm manager". The revolution and development of production system also enable family members to spend less and less of their workforce in the farm, depending on the configuration of the farm.

3.3.10 Employment
As definition, family farming uses mainly the work force from the family, although some families are quite active in farming that they need to relay on employees or temporary hired work for times when work force is highly demanded.

3.3.11 Family Income

These data reflect the profitability of the farm, once the study considers only families whose have at least 80% of their incomes from farming activities. Family income is composed by the sum of farm and family members activities, whether on the farm or out of the farm. A set of time series variable capture the evolution of income according to the changes in the farm structure. All values are displayed in Brazilian Real and deflation was calculated to update the values to August 1st 2007 according to IGPDI.

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PRESENTATION AND DISCUSSION OF RESULTS

CHAPTER FOUR PRESENTATION AND DISCUSSION OF RESULTS

This chapter intends to bring a picture of the small family sugarcane farms in northern central Paran and thus a glimpse of the profile of producers in the area. Thanks to a time series characteristic of the data collection, some changes during time can also be observed. Results obtained will be discussed in detail.

4.1 Outlook of the Farms of the Sample

The 39 farms that compound the object of this study have the following characteristics according to the SPSS descriptive analysis of their area.
Table 2

Descriptive Exploration - Area (ha) of the Properties Area (ha) Mean 95% Confidence Interval for Mean 5% Trimmed Mean Median Variance Std. Deviation Minimum Maximum Range Interquartile Range Skewness Kurtosis
SPSS Descriptive Analysis Output Source: Data Collected

Lower Bound Upper Bound

Statistic 78,46 65,76 91,17 78,01 84,00 1536,308 39,196 18 148 130 64 ,092 -1,052

Std. Error 6,276

,378 ,741

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PRESENTATION AND DISCUSSION OF RESULTS

Most of the farms interviewed have quite new plantations of sugarcane; indeed, according to the sample 72% of the plantations are new. Sugarcane plantations can bear several harvests, i.e. after once planted sugarcane can be harvested for several years, some plantations in Paran last up to 9 years. In the sample area most of the plantations as new, that reflects the expansion of sugar cane areas in the last five years.

4.1.1 Area
The following graphs show the growth of areas of sugarcane in the region per county studied (Figure 3) and a comparison of the growth in the region with the Paran and Brazil: (Figure 4)
Figure 3: Sugarcane Area (ha) of Farms in the Sample
2.500

2.000

1.500 hectares 1.000 500 0 2002 Astorga 2003 Colorado Jandaia 2004 Maringa 2005 Mandaguari Total 2006

Source: Data Collected

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 4: Comparison of Sugarcane Area (ha). Sample* Paran** Brazil***.
7

0 2002 2003 Sample 2004 Paran Brazil 2005 2006

Source: Sample - Data Collected (Data in Thousand Hectares)* Paran 2007 (Data in Hundred Thousands Hectares) ** Brazil IBGE (Data in Million Hectares) ***

4.1.2 Adoption
From the graphs above (Figure 3 and Figure 4) its clear that sugarcane area increased sharply in the last 3 to 5 years. That can also be seen by looking at the quantity of new adopter of sugarcane, as well as, looking at the age of plantations as new ones (planted first time) and reformed (just replanted).

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 5: Age of Plantations.
12

10

8 Farms / Plantantions

0 1 2 Years Old New Reformed 3 4

Source: Data Collected

Figure 6: Comparison of New and Reformed Plantations.

New 72%

Reformed 28%

Source: Data Collected

Profitability has been appointed to be the main reason for adoption of sugarcane (72%), followed by Safety (15%), due to the fact that sugarcane is usually planted with, at least, five years long contracts, that make sugarcane a safe option both to farmers and processors. Diversification has also been pointed out as a reason for adoption. Some

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PRESENTATION AND DISCUSSION OF RESULTS

farmers prefer to still keep some less other crops and activities due to several reasons such as need of constant cash flow.
Figure 7: Reasons for Adoption of Sugarcane.

Safety 15%

Diversification 13%

Rentability 72%

Source: Data Collected

Families that have adopted sugarcane production have adopted it intensively, more and 90% of adopters have planted sugarcane on more than 51% of their arable land.
Figure 8: Percentage of Arable Land used for Sugarcane.

10% 31% 18%

41%

More than 90%

75% - 89%

51% - 74%

Less than 51%

Source: Data Collected

Distance of the processing plant is another decisive factor. From the farms in the sample the average distance from the processing plant was 23 km, anyways the average distance has always been less than 30 km. Sugarcane is a low density commodity and its price is

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PRESENTATION AND DISCUSSION OF RESULTS

low compared to other commodities; that makes distance from processing plant a limitative variable for sugarcane adoption.
Figure 9: Average Distance (Km) from Farms to Processing Unit by County.
Astorga
30

20

Mandaguari

10

Colorado

Maringa

Jandaia

Source: Data Collected

4.1.3 Machinery and Implements

Possession of tractors and implements do not configure among the decisive factor for adoption of sugarcane. 54% of farmers do not have any rural machinery or implement. 20% have one single tractor and the remaining 26% have 2 tractors, most of the tractors are quite small once average power was measured as 67 hp. Thanks to new productive systems farmers do not have to own heavy machinery anymore, in some cases such as when Buyers take over 100% of the productive activities, no machinery is needed at all. Even if farmer has to execute part of the production with no machines, machines can be easily rented on the personnel for the tasks contracted.

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PRESENTATION AND DISCUSSION OF RESULTS

4.1.4 Partnerships in Production

Most of the farmers of the sample (48%) produce sugarcane in partnership will Buyers, in this kind of partnership buyers takes over 100% of the productive activities, from preparing the soil to harvest and delivery. In this system farmers usually just act as supervisors of production. 31% of farmers share the productive activities with the Buyers, that usually means that farmers take over some of the productive activities, more commonly: preparing, correcting and fertilizing the soil; planting and also managing the production, inputs are provided by the buyer that usually takes over from the harvest on. 21% of farmers have to manage their own productive system combining services and inputs and services provided by the buyers with other bought or hired from third parties.
Figure 10: Partnership in Production.

Buyer + Farmer and Third Party 21% Farmer + Buyer 31% Buyer takes over all productive processes 48%

Source: Data Collected

4.1.5 Other Crops and Pasture

As areas for sugarcane have increased the areas of other crops have decreased, also sharply, mostly due to a substitution effect. Simultaneously, the availability to areas to be rented for other crops also decreased, most probability due to the possibility that other landowners also decided to start producing sugarcane, once the production system implemented by many buyers are quite similar to renting.

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 11: Area (ha) used by Other Crops.
1.800

1.600

1.400

1.200

hectares

1.000

800

600

400

200

0 2002 2003 Astorga Colorado 2004 Jandaia Maringa 2005 Mandaguari Total 2006

Source: Data Collected

Figure 12: Rented Area (ha) for Other Crops.

700

600

500

400 hectares 300 200 100 0 2002 2003 Astorga Colorado 2004 Jandaia Maringa 2005 Mandaguari Total 2006

Source: Data Collected

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PRESENTATION AND DISCUSSION OF RESULTS

Paran, as most areas in Brazil, provides the possibility of two or more crops a year, the most common combinations in the region are: soybeans in summer and maize or wheat in winter. The dataset also shows that some farmers, in the Jandaia County, also produce coffee, the only permanent crop in the dataset. Jandaia holds a long tradition in coffee production even after the crisis the sector went through in the last decades. Farmers usually do not switch totally to sugarcane production due to other factors such need of constant cash incomes that are better provided by other crops of a shorter cycle.

Figure 13: Crops cultivated in summer.

8

5 Producers

0 COFFEE MAIZE Summer Crop SOYBEANS

Source: Data Collected

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 14: Crops cultivated in winter.
WINTER CROPS
12 11 10 9 8 7 6 5 4 3 2 1 0 MAIZE WHEAT Winter Crop COFFEE

Source: Data Collected

Pasture areas, such as other crops area, decreased fast and sharply. The sample dataset shows that in some counties it even disappeared totally in the last 3 years. Areas of pasture have been decreasing in Paran as a whole in the last decades, mainly thanks to the expansion of new areas in the north of the country or to more traditional areas in animal production, such as southward areas. Problems with animal health security also pushed farmers away from animal production.
Figure 15: Area (ha) of Pastures.

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Producers

31

PRESENTATION AND DISCUSSION OF RESULTS

350

300

250

200 hectares 150 100 50 0 2002 2003 Astorga Colorado 2004 Jandaia Maringa 2005 Mandaguari Total 2006

Source: Data Collected

The areas still dedicated to animal production produce mainly milk; milk usually is consumed in county level. Beef is usually imported from more southward areas, but still present. Equine and ovine production also show up, equines are used mostly only for leisure and ovines (sheep) are traditionally part of the diet in the central region of the state. Although not displayed on the graphic, its worth mentioning that one of the farms produces Poultry in commercial level and two other for family consumption only. Poultry seems to be the a promising alternative for diversification in the region, thanks to high world market prices, low area demand and the large availability of maize in the region.
Figure 16: Use of Pastures.

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PRESENTATION AND DISCUSSION OF RESULTS

4

Producers

0 Beef Beef and Milk Equine Use of Pasture Milk Ovine

Source: Data Collected

4.1.6 Forest
According to Brazilian legislation farms shall have at least 20% of their area covered by permanent forest. From the sample just 6 farms comply with this regulation. The legislation also obliges protection of water sources and riverside forests. This regulation reduces significantly the availability of arable land for farmers, not only for sugar cane. There are a few rules that make it possible to have a smaller percentage of area dedicated to forest area, but legislation of water sources protection areas and the supervision of those are quite strict. Furthermore the government has launched several campaigns to foster support the compliance to legislation. Areas of commercial forests (wood production) do not count to the mandatory percentage, according to the legislation.

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 17: Evolution of Area (ha) of Forest.
200

180

160

140

120 hectares

100

80

60

40

20

0 2002 2003 Astorga Colorado 2004 Jandaia Maringa 2005 Mandaguari Total 2006

Source: Data Collected

Figure 18: Evolution of Area (ha) of Water Source Protective Forests.

140

120

100

80 hectares 60 40 20 0 2002 2003 Astorga Colorado 2004 Jandaia Maringa 2005 Mandaguari Total 2006

Source: Data Collected

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PRESENTATION AND DISCUSSION OF RESULTS

4.1.7 Productivity
Average productivity measured in the region scored above average production obtained in Paran and in Brazil. The average productivity in the region in 2006 scored 99 tons/ha. Productivity did increase slightly in the last year thanks to new technologies in better management systems. Productivity is expected to increase even more in the near future thanks to research and development of new varietals of sugarcane.
Figure 19: Comparative Productivity Achieved. Sample Paran Brazil.
120

100

80

tons/ha

60

40

20

0 2002 2003 Region 2004 Paran Brazil 2005 2006

Source: Region Data Collected Paran ALCOPAR Brazil IBGE

When compared from county to county, there is not much variation on the productive scored by the farms of the sample, indeed productivity in the region is quite homogeneous. In a time series of 5 years results are: Colorado and Jandaia 97 tons/ha, Astorga 95 tons/ha, Maring 92 tons/ha and Mandaguari 90 tons/ha, a detailed outlook can be seen on the following graphic.

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 20: Average Productivity Observed Counties and Region.
120

100

80

tons/ha

60

40

20

0 2002 2003 Astorga Colorado 2004 Jandaia Maringa Mandaguari 2005 Region 2006

Source: Data Collected

4.2 Family Composition and Presence in Farm Workforce

Most of the families of the sample do not live on the farm (54%). The 39 families interviewed sum up 166 individuals; 99 (60%) men and 67 (40%) women. Its interesting to note that the older man get, bigger the percentage of them that work exclusively on the farm, from 6% in age group 3 (21-30) to 14% in group 4 (31-40), 31% in group 5 (41-50), 33% in group 6 (51-60) up to 100% in group 7 (61-70). Nowadays most of the family members work out of the farm, and as sugarcane is adopted the demand for workforce on the farm decreases.

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 21: Family Composition by Age Group, Gender and Activity.
35

30

25

individuals

20

15

10

0 Male Individuals Female Individuals Males working on the Farm 21 to 30 31 to 40 Females working on the Males working out of the Females working out of Farm Farm the Farm 41 to 50 51 to 60 61 to 70 71 to 80 81+

0 to 10

11 to 20

Source: Data Collected

In the 39 farms interviewed, all the managers where male. Most of them (33%) belong to age group 6 (from 51 to 60 years old). Concerning the level of education of 64% (25) of them just have less than high school level and only 7,7% (3) of them have college education or more.

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PRESENTATION AND DISCUSSION OF RESULTS

Figure 22: Age of Farm Managers.
14

12

10

Individuals

0 21 to 30 31 to 40 41 to 50 Age Group 51 to 60 61 to 70

Source: Data Collected

Figure 23: Level of Education of Farm Managers.

30

25

20

Individuals

15

10

0 Less than High School High School Level of Education College or More

Source: Data Collected

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PRESENTATION AND DISCUSSION OF RESULTS

4.2.1 Family Income

Adoption of sugarcane has influenced the increase of income of families interviewed. All of them have achieved better incomes as before. Even for those families that have been planting sugarcane for longer time (early adopters) income has increased significantly in the last 5 years, thanks to good world market prices of sugar, booming sector of renewable fuels and also the deregulation of the industry in Brazil. Development of new production techniques and adoption of new technologies also pushed incomes upwards. This study focus on the increment of families' income considering adoption of sugarcane as a relevant factor.
Figure 25: Evolution of Family Income form Farming Activities.
250.000

200.000

Brazilian Reais (BRL)

150.000

100.000

50.000

0 2002 Astorga 2003 Colorado 2004 Jandaia Maringa 2005 Mandaguari Region 2006

Source: Data Collected Values in Brazilian Reais (BRL), all values have been deflationated to present values of August 8th 2007.

Running SPSS correlation analysis the results show that Correlation of Area of sugarcane and income is significant at the 0.01 level according to Pearsons correlation coefficient years from 2003 to 2006, in 2002 there were few valid values to compute it because many value are just empty due to a still low adoption rate.

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PRESENTATION AND DISCUSSION OF RESULTS

Table 3: Correlation Analysis of Planted Area of Sugarcane and Income.
Income 2006 Area of Sugarcane 2006 Pearson Correlation Sig. (2-tailed) N Area of Sugarcane 2005 Pearson Correlation Sig. (2-tailed) N Area of Sugarcane 2004 Pearson Correlation Sig. (2-tailed) N Area of Sugarcane 2004 Pearson Correlation Sig. (2-tailed) N Area of Sugarcane 2003 Pearson Correlation Sig. (2-tailed) N ,565(**) ,000 39 ,439(**) ,005 39 ,225 ,169 39 ,240 ,141 39 ,578(*) ,038 39 Income 2005 ,691(**) ,000 39 ,895(**) ,000 39 ,474(**) ,002 39 ,336(*) ,036 39 ,520 ,068 39 Income 2004 ,449(**) ,004 39 ,616(**) ,000 39 ,497(**) ,001 39 ,396(*) ,013 39 ,117 ,703 39 Income 2003 ,542(**) ,000 39 ,658(**) ,000 39 ,453(**) ,004 39 ,447(**) ,004 39 ,457 ,117 39 Income 2003 ,440(**) ,005 39 ,534(**) ,000 39 ,390(*) ,014 39 ,394(*) ,013 39 ,219 ,472 39

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed). Source: Data Collected (output of SPSS Correlation Analysis)

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SUMMARY AND CONCLUSIONS

SUMMARY AND CONCLUSIONS

This study undertook to analyse and draw an outlook of family farms producing sugarcane in a specific region of Paran, the second larger producer of sugarcane in Brazil. Given the importance sugarcane has gained in the last decade thanks to its broad range of application and especially as source of clean energy. The decision of adopting a new crop, with new production schemes, is crucial to the survival of those families as farmers, as well as, it also does interfere in deeper realms of family and property structures. A new scenario compounds the sugarcane industry, after extinction of a productive system based on production quotas and the expansion of local industry thanks to a propitious world market prices, as well as, local market achievements especially due to fact that ethanol is widely and intensively used as fuel in Brazil. To capture a picture of how family farms fit and develop in this new booming industry is the intention of this study.

Conclusions
This study focused specifically on family farms that acquire at least 80% of their income from farming activities. Based on a field research of families of the Northern Central Region of Paran. In order to understand the factors that could be influencing the adoption of sugarcane a number of variables were included in the analysis. The analysis of these data enables to draft a generalized picture of family farms that adopted sugarcane in the region. Sugarcane has always been considered as a monoculture and mostly an activity for landowners with large amounts of land. Indeed, the adoption of sugarcane is roughly a new event to most family farmers, and 41% of them have adopted it intensively (at least on 90% of their arable lands), only 10% of interviewed farmers use at least 50% of their arable land with other activities. Profitability was pointed out to be the main reason of decision in adoption of sugarcane. Partnerships also enable adoption by farmers with no or little access to credit, once in some cases they are exempt of investments in planting or buyer will provide them credit (in form of services and inputs), thus partnerships made adoption possible to many farmers. Due to partnerships machinery is not a limitative variable anymore, once its not a requirement anymore, it can be (and usually is) rented or provided by buyers. Distance from processing unit still configures as a restrictive variable because of

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SUMMARY AND CONCLUSIONS

costs of transportation and logistic hardships, at the present moment and as a rule of thumb: farm shall be located within 50-60 km from processing plant. Productivity in the region scores very good results, above the average productivity in Paran and in Brazil. This contributes to higher profitability and enables farmers to shift from other activities to sugarcane. Other crops are still present along with sugarcane, but the planted area decreased sharply in the last five years. Soybean is the main summer crop and Maize the main winter crop, coffee and wheat also, but in lower scales. Areas of pasture also have decreased sharply, but specially areas dedicated to milk production still persist, as well as, beef and milk cattle combined production. Although rumours claim worldwide that forests are chopped down from opening way to arable land in Brazil, at least in the region studied things seem to be quite different, data show an increment in area of forests and more significantly in area of water sources protective area. That is not related to sugarcane at all, just a result strict control by the government. Farmers that do not comply with the environmental legislation are not eligible to most of the credit and other supportive programs. As far as family farming is concerned to family work, the results obtained do show a different picture. The usual definition of family farming would not fit too many of the farms in the sample due to the fact that little or none of the workforce of the family is used on the farm. When sugarcane enters the scenario, combined with partnerships with buyers that execute most of the tasks of production most of the family workforce goes idle, as most of the families do not live on the farm, this extra workforce is easily exported to other activities. Idle family workforce is not a phenomenon of sugarcane industry only, but a quit common phenomenon of modern and mechanized agriculture. This detachment of family and production is often mentioned as sugarcane production does not demand much human workforce sounds awkward to most people from the industry, but from farmers point of view it is real, large amounts of work force are required in case of manual or semi-mechanized harvest, in these cases workforce usually is provided by buyers, thus workforce is not an input of farmers. Data show that older men are work on the farm and the percentage increases with age. All managers are male and their education level is relatively low. No woman was mentioned to be working on the farm exclusively. Sugarcane adoption directly influences the increment of income, in some cases income after adoption increased by up to eightfold. The combination of high prices of sugarcane combined with the offer of easily accessible credit in the form of partnership with buyer makes sugarcane decision almost a nobrainer, almost because there are other variables the present study was not able to capture, such as

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SUMMARY AND CONCLUSIONS

tradition or path dependency in production of other goods, contract bonds, distance limitations and several others. A few farmers also mentioned the possibility of trading futures to increase their profitability of sugarcane (once production has been contracted by processor, farmers have the option to negotiate futures contracts of compatible products such as Ethanol and Sugar or Future ATR, this nuance is not quantitatively analyzed here because it has not been foreseen when building up the questionnaire, but it is worth mentioning once it popped up a few times and it would be a good theme of further and deeper studies.

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REFERENCES

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REFERENCES INCRA/FAO. Projeto de Cooperao Tcnica INCRA/FAO - Novo Retrato da Agricultura Familiar: O Brazil Redescoberto. Braslia, 2000. IPARDES 2004. Instit. Paranaense de Desenvolvimento Econmico e Social. Leituras Regionais: mesorregies geogrficas paranaenses. Curitiba. CD-ROM. LAMARCHE, H. 1993: A Agricultura Familiar: Comparao Internacional. Campinas, So Paulo. Editora da Unicamp. MATTEI, L. 2001. Programa Nacional de Fortalecimento da Agricultura Familiar (PRONAF): concepo, abrangncias e limites observados. IN: V Encontro da Sociedade Brasileira de Sistemas de Produo. Belm, PA. Available at: http://gipaf.cnptia.embrapa.br/itens/publ/artigos_trabalhos.html. Accessed on: December 2nd 2006. MDA 2006: Ministrio de Desenvolvimento Agrrio. Secretaria de Agricultura Familiar. Available at: http://www.pronaf.gov.br/ater/documentos/PNATER%20&%20Glossario.doc. Accessed on: November 21st 2006. NEVES, D.P. 1981: Lavradores e Pequenos Produtores de Cana: Estudo das formas de subordinao dos pequenos produtores agrcolas ao capital. Rio de Janeiro, Editora Zahar. PRESSER, Stanley 2004: Methods for testing and evaluating survey questionnaires. New York. Wiley. RISSARDI JUNIOR, D. J. 2005: A agroindstria canavieira no Paran Ps-desregulamentao: Uma Abordagem Neoschumpteriana. Master Thesis, Universidade Estadual do Oeste do Paran - Toledo, UNIOESTE. SHIKIDA, P. F. A. 2005: Evoluo da agroindstria canavieira no Paran: setor amplia investimentos e movimenta a economia do estado. In: Revista FAE Business, Curitiba (PR), v. 11, p. 46 - 47. SHIKIDA, P. F. A.; ALVES, L. R. A. 2001: Panorama estrutural, dinmica de crescimento e estratgias tecnolgicas da agroindstria canavieira paranaense. Nova Economia In: Revista do Departamento de Cincias Econmicas da UFMG, Belo Horizonte, v. 11, n. 2, p. 123 149. SIDRA 2007: Sistema IBGE de Recuperao Automtica. Natinonal Maps Database: Maps of Regions of Paran. Available at: http://www.sidra.ibge.gov.br. Accessed on: July 24th 2007. SUNDING, D.; SILBERMAN, D. 1999: The agricultural innovation process: research and technology adoption in a changing agricultural sector. Berkeley. Available at: http://are.berkely.edu/~zilber/EEP39/innovation.pdf. Accessed on: July 24th 2006. Sczmrecsnyi, T. 1979: O planejamento da agroindstria canavieira no Brazil (1930-1975). So Paulo, HUCITEC/UNICAMP. Sugarcane Production in Paran Brazil. An outlook of Family Farming in a Booming Industry.

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ANNEX

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