Bio-Diesel As A Rural Development Strategy

Having become the world leader in ethanol production, Brazil turns to bio-diesel, with a policy that is intended to benefit small, family farms so as to keep them on their land, and benefit President Luiz da Silva in his reelection bid.
September 21, 2006, 8am PDT | Irvin Dawid
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In a dual effort to reduce the country's pollution and improve the economic vitality of its rural poor, Brazil has put forward legislation that will require the blending of biodiesel into the nation's diesel fuel -- a move that is expected to benefit small farmers.

"Biodiesel producers who want to qualify for hefty tax breaks must purchase 10% to 50% of their raw materials from small growers, depending on the region."

"Major companies, including U.S. agribusiness behemoth Archer Daniels Midland Co., are building production plants, encouraged by a federal mandate requiring every liter of diesel fuel sold in Brazil to contain 2% biodiesel by 2008, rising to 5% by 2013."

"President Luiz Inacio Lula da Silva, who is running for reelection, has touted biodiesel production as a way to spark development in some of the poorest regions of the country, particularly the rural northeast."

Thanks to Ralph Borrmann

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Published on Tuesday, September 19, 2006 in Los Angeles Times
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