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The Castor Bean Brazilian Project: Challenges and Opportunities Aldara César PhD. Student Federal University of São Carlos Production Engineer Department Agro Industry Research Study Group

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The Castor Bean Brazilian Project:

Challenges and Opportunities

Aldara CésarPhD. Student

Federal University of São Carlos

Production Engineer Department

Agro Industry Research Study Group

PNPB: National Program for the

Production and Use of BiodieselE

con

om

y

So

cial

En

vir

on

men

t

Technology Base

Soc

ial

incl

usi

on

Advantages

Tributary exemption

Participating in auctions

Helping to qualify for public bank loans

Marketing tool

Requirements

Buying a minimum percentage of raw

material from small farms

Technical assistance

Social Fuel Seal

Producers’

associations and

cooperatives

Producers’

associations and

cooperatives

Biodiesel plants

representatives

Biodiesel plants

representatives

Biodiesel

production

mills

Biodiesel

production

mills

Small

Farmers

Small

Farmers

At Present:

Ricinus chemistry

mills

Ricinus chemistry

mills

2007 2008 2009 2010*

Estimative

6.850 17.187 17.711 55.000

Fonte SAF/MD (2010)

Number of small farmers involved in castor bean projects

Why Castor Bean

(Ricinus communis) ?

Technology

Constraints: Farm Level

Knowledge

Financing

Low investiment and easy technical adaptation

Strongly influenced by cultural factors

Simple

Workload

Residue use competition

Constraints: Farm Level

Constraints: Coordination

Small

Farmers

Small

FarmersChemical

Ricinus Industry

Chemical

Ricinus Industrybrokersbrokers

Credit /Tust

Access to Markets

Technical support

Access to information

Constraints: Beyond farm level

Companies must ensure the purchase of castor beans

NI establish150 farms

Access made by the visit of the technician.

Policies

PoliticsImage of previous cooperatives

Access to credit Lack of payment of previous loans

PRONAF

Constraints: Beyond farm level

Bureaucratic problems

�low productivity;

� highly irregular seasonality;

� inefficient technical assistance;

� strong influence of brokers in the chain;

� inexperienced associations;

� high debts of farmers;

� difficulties in obtaining credit

Major problems that stand in the

way of the development of the

biodiesel projects are:

Proposals/ Solutions

Techical Assistance

-Overcome the limitation of

soil conditions.

-Help develop trust

relationship

High transaction costs

- Investment and training of

community leaders

Credit policy limitations.

Create opportunities for credit

accompanied by technical

assistance focused on the

efficient management of the

property.

To ensure satisfactory technical

assistance thus building up the

farmer’s trust in relation to the

biodiesel industry.

Eliminating the presence

of brokers

SCALE-UP

Encouraging companies to pay for

higher-quality and uniformity of

castor beans and pay for beans

produced in social arrangements.

Policy incentives

Thank you

[email protected]