October 21, 2007

Abstract: (Angus Reid Global Monitor) - Most people in Brazil think highly of their country’s pledge to produce bio-fuels en masse but some fear this might affect food crops, according to a poll by Instituto Sensus. 51.4 per cent of respondents think the South American country will become a world leader in the production of bio-fuels.

(Angus Reid Global Monitor) - Most people in Brazil think highly of their country’s pledge to produce bio-fuels en masse but some fear this might affect food crops, according to a poll by Instituto Sensus. 51.4 per cent of respondents think the South American country will become a world leader in the production of bio-fuels.

However, 35.8 per cent of respondents fear the production of such fuels using large agricultural areas could affect food production. Almost half—49.4 per cent—do not think this will be the case.

Two years after the 1973 oil crisis, the Brazilian government—controlled at the time by a military junta—ordered the implementation of a nationwide program to gradually replace fossil fuels in favour of ethanol. Brazil’s ethanol is derived from sugar cane.

Luiz Inacio Lula da Silva—a member of the Worker’s Party (PT)—won the October 2002 presidential election with 61 per cent of the vote in a run-off against Jose Serra of the Brazilian Party of Social Democracy (PSDB). In October 2006, he earned a new four-year term, defeating PSDB candidate Geraldo Alckmin with 60.8 per cent of the vote in the second round.

One of Lula’s main policies has been to boost the production of ethanol in Brazil. The ongoing enterprise has proven to be a first-rate international business. All of Sweden’s bio-fuel, for instance, is imported from Brazil.

Brazilian carmakers began selling flex-fuel cars—which can run on both regular gasoline and ethanol—in 2003. These vehicles represent 85 per cent of new car sales today.

On Oct. 8, Sergio Gabrielli, chief executive of state-run oil firm Petrobras, said people in Brazil will consume more ethanol than gasoline by 2020, once flex-fuel cars become more predominant than regular vehicles. Gabrielli declared: "Gasoline consumption in Brazil won’t fall—it will increase—but consumption of other (fuel) sources will rise even faster."

Polling Data

Do you think Brazil will become the global leader in the production of bio-fuels?

Yes	51.4%
No	28.8%
Not sure	19.8%

In your opinion, will the production of bio-fuels using large agricultural areas of the country...

Will affect food production	35.8%
Will not affect food production	49.4%
Not sure / No opinion	14.8%

Source: Instituto Sensus
Methodology: Interviews with 2,000 Brazilian adults, conducted from Oct. 8 to Oct. 12, 2007. Margin of error is 3 per cent.