Brazil's plans to transform its booming ethanol sector into a major export industry are facing a major setback as an international backlash against biofuels spurs criticism of the South American country's sugarcane-based ethanol program. Critics say that biofuel production is one of the drivers behind soaring food prices; that it may not reduce carbon emissions after all, as virgin land is burned or plowed for crop production; and that it has indirectly hastened destruction of Brazil's Amazon rainforest, as farmers and cattle ranchers push deeper (EC Apr.18,p7). As food prices rise and the ethanol market expands, land prices in Brazil have hit record highs, a sign that enhanced agricultural activity is putting pressure on supplies.
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