Abstract
This case study describes Brazilian ethanol industry and strategic issues faced by sugarcane farmers and processors as a result of recent industry expansion into the states of Goias and Mato Grosso do Sul. It provides detailed description of the ethanol supply chain in Brazil from field to market and discusses market drivers influencing the industry. Shaped by government regulations, market liberalization, globalization, and technological change, the Brazilian ethanol industry provides a rich context for learning and applying strategic analysis tools. The case is designed to be used in a graduate or undergraduate agribusiness management or strategic management course. The specific teaching objective for this case is to refine and reinforce students’ understanding of industry analysis and the effect of market drivers on competitive forces in an industry. Students will be expected to conduct an industry analysis and provide strategy recommendations to managers of ethanol plants and farmers. The case study incorporates all of the essential information for students to understand the underlying economics of the ethanol value chain and how the external forces shape strategic growth opportunities.
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