Piracicaba & Cabra Feliz
This last weekend we went to Piracicaba to visit Alexandre and Bruna; and Bea and Reynaldo from 2011. The trip from Assis to Pircacicaba was about 8 hours as Sao Paulo still doesn't have a vast interstate connecting its cities in the same way that the United States does. Luckily, the landscape is beautiful with endless sugarcane fields planted in the signature red soil of São Paulo. Sugar Cane dominates São Paulo as it competes with oil for fuel for cars. Ethanol is about $1.80 reais per liter and gasoline is about $2.80 reais per liter. Recently, the government started subsidizing gasoline as a way to control inflation and boost government popularity. This is making the sugar cane ethanol industry hugely unprofitable as it does not receive subsidies (unlike the US where corn ethanol receives significant subsidies). It remains to be seen what will happen to Brazil's great sugar cane ethanol industry. If it is competing against subsidized oil, it will likely fail in the long te...