Sugarcane is planted in Brazil mainly for sugar and ethanol production. To meet the requirements of production, the cane is cultivated utilizing the so-called ratoon system in which the first cut is made 18 months after plantation, followed by annual cuts along a period of 4 or 5 years, with decreasing yields. The Brazilian warm climate with rainy summers and clear skies in the winter help the cane to build a strong fiber structure during its growth phase and fix sugar in the winter.

The development of sugarcane crops in Brazil has benefited from constant research in the development of new varieties, particularly by the Agronomic Institute of Campinas (IAC), Cooperative of the Sugar and Ethanol Producers of the State of Sao Paulo (Copersucar) and the National Plan for Sugarcane (Planalsucar), a division of the Sugar and Alcohol Institute (IAA). In the last 30 years, however, the entire agricultural research apparatus of Sao Paulo, including research stations, were submitted to constant dismantling, which slowed down productivity improvements in sugarcane production at a time when oil prices were falling. This made ethanol less competitive. Meanwhile, the Federal Government pursued policies to eliminate state intervention in the sugar business, extinguishing the IAA and the Planalsucar, among other organizations.

Some of the earlier research responsibilities have been taken over by private organi­zations. Copersucar, for example, shifted the emphasis of its program to develop new varieties mainly through CTC, a technology center in Piracicaba, Sao Paulo. Another constant preoccupation in research has been related to extending the crushing season by developing early ripening, and increasing the yield by combating pests. The sugarcane breeding program has also incorporated modern techniques in molecular biology. Genetic transformation of sugarcane varieties has been achieved in the CTC laboratories and various transgenic sugarcane varieties are being presently field-tested.

Another major technological change observed in the sugarcane agriculture in the last 40 years is related to the introduction of machinery in soil preparation and conservation, particularly in the Southern states of Brazil. Some intensification of machinery use has been observed in the last two decades in various operations, from soil tillage to harvesting and, particularly, in cane loading. Less significant advance­ments were verified in planting the cane. All the cane is still being manually planted, although a cane-planting machine has been recently developed by Copersucar and licensed to DMB. Sermag and Brastoft are also offering planting machines in the market.

Despite the progress achieved in cane production so far, harvesting remains the least advanced operation. Cane fields are now systematically burned to allow manual harvesting. However, this is changing rapidly. Environmental pressures, legislation enforcement and cost reduction are pushing for mechanical harvesting of unburned cane (Furlani et al., 1996). In addition, the potential to generate revenues from cane residues is likely to provide incentives in this direction once the producers start evaluating other revenue options in their total production chain.

Development in cane harvesting and their potential to reduce agriculture costs will be discussed later in this chapter. Other possibilities for cost reduction are rela­ted to optimization in agricultural management, including introduction of operation research techniques and precision agriculture, which will allow a more rational use of resources and increase of yields. For example, the concept of environments of production combines soil charts with climatic and variety data and brings returns around US$ 40/ha according to tests conducted in some sugar factories.

Information software provides the basis for significant improvements in agricul­ture too. Software based on GIS (geographical information system) with embodied electronics together with productivity data can indicate the effect of productivity related variables such as soil fertility, pests, diseases, insects, weeds, soil compaction, and harvesting methods. This may serve as the basis for better management of crops and improved productivity. Software to improve logistics are also being developed, helping to improve the allocation of loaders, harvesters or trucks to optimize raw material flows to the factory. Logistic optimization in cutting and transporting cane has already brought reductions of 5 to 13 per cent in the agricultural cost of cane (data based on Copersucar mills in Sao Paulo, close to 25 per cent of Brazilian production in 1999).