Sugarcane Agro-Industry Relations in Brazil: To What Extent Can Commercializing Bagasse Foster a Just Bioeconomy Transition in the State of São Paulo?

Abstract

Promoting just bioeconomy transitions in global biomass supply chains is essential to guarantee rural development and sustainable livelihoods. However, contrasting academic findings on the social implications of new residue markets within the bioeconomy highlight the importance of understanding which supply chain actors win or lose in such transitions. This thesis explores agro-industrial relations between producers of raw materials (farmers) and industrial processors (mills) in the sugarcane sector of São Paulo, Brazil. Specifically, it focuses on bagasse, a sugarcane agricultural residue, whose demand is expected to rise with the growing adoption of bioeconomy strategies worldwide. A mixed-methods qualitative approach based on semi-structured interviews, field visits and surveys was designed to understand distributive justice in the production of sugarcane as raw material and in the use and commercialization of bagasse as agricultural residue. Besides, stakeholders’ perceptions of what would constitute a just distribution of benefits and burdens among farmers and mills in the bioeconomy were investigated. The findings revealed power imbalances between farmers and mills, with mills benefitting more compared to farmers both in the current production system and in the development of the bioeconomy setup. Further demand for sugarcane bagasse might exacerbate these existing disparities, underscoring the need for designing agricultural residue supply chains based on awareness of current power relations and normative social justice considerations. Active efforts to incorporate justice dimensions beyond mere distribution, including procedural and recognition justice, were identified as essential for ensuring just bioeconomy transitions in existing agro-industrial systems.