"Big companies, which have better access to credit and capital, could also help consolidate, modernize and expand Brazil's ethanol industry."

They could also lobby the governments of rich countries to have them lower the ethanol import tariffs (for all I know, right now these potential investors are lobbying to keep the tariffs high, thereby decreasing the sale price of their desired properties in Brazil).

It is very important to point out the problems with labor in the sugar cane industry. But most people don't know that cane cutters in Brazil have become the staunchest supporters of their own trade. Why? Because tens of thousands of them are being threatened by mechanisation. 700,000 workers perform manual labor on the plantations; half of those are projected to lose their jobs over the coming years.

Already 30% of all cane is harvested mechanically. One machine replaces between 50 and 80 cutters. These unskilled workers then end up in the slums of the mega-cities, in even deeper poverty. (The capitalist commodity system in itself is fraudulent and results in slavery and slums; this can only be overthrown in a revolutionary way; but let's stick within this system and see what we can do).

Social analysts have called this trend a disaster in the making, so much so that they only see one alternative: supporting manual harvesting combined with a stringent improvement of working conditions (safety, better equipment, less working hours), more representation (unions) and better wages.

The Brazilian government has worked on all these measures, but not enough.

However, it has a plan that could offer a compromise: sugar cane expansion will be promoted on land that is difficult to harvest mechanically (slopes, hilly terrain). Here manual labor would be supported; this would result in more expensive ethanol.

The rest will be harvested mechanically and become even cheaper. A combination (virtual blending) of these two streams would then result in a socially acceptable fuel.

It remains to be seen how this will work out.

At least not in the long term. Corn based ethanol is causing the cost of cattle feed to rise, and in turn raising the price of beef and dairy products, thereby putting farmers out of business and squeezing the life out of the poor and middle class. Further more, mono cropping of corn and sugar cane depletes the soil of nitrogen and other nutrients which require expensive furtilizers. (hint to farmers, raise the price of manure to recoup losses) The only long term solutions to our energy problems have to come from solar, wind and other alternative sources. We really should have realized this during the oil embargo back in the 70's. If we had put $4.5 billion dollars into energy technology instead of a war for oil, we might have found a way to stop putting money into our enemies pockets every time we go to the pump. (think: filling the tank funds the terrorists) If oil companies would invest in these options instead of investing to suppress them they could make profits off an industry that would be better for our economy and the environment. (hint to oil companies and auto makers, become the hero's, not the villians)