Economy of Ribeirao Preto

alcohol fuel program, or Pro-Álcool as it is called. Pró-Álcool led to the development of a technology which allows the use of ethanol (sugarcane alcohol) either as automotive fuel or as a gasoline additive. The latter improves performance and substitutes lead thus decreasing polluting emissions. Due to the Pró-Álcool program, farmers from the region of Ribeirão Preto were encouraged by government subsidies to grow sugarcane. The high productivity of the land around Ribeirão Preto rapidly placed the region as the largest alcohol and sugar producer of the world, being responsible for 30 percent of Brazil’s sugarcane alcohol fuel.

Contrary to what happened during the city's first economic boom, this time Ribeirão Preto farmers and entrepreneurs did not concentrate themselves exclusively on a single crop and diversified their investments making the city one of the most important agribusiness centers of Brazil. Besides sugar and alcohol, Ribeirão Preto's major products are orange juice, cotton, rice, meat, dairy products, textiles, machinery, steel, furniture, building materials, agrochemicals, pharmaceuticals and, of course, beer. The city hosts "Agrishow" on an annual basis, this show being one of the most important agricultural trade shows in Brazil.

The sugarcane boom brought a new age of prosperity for the city, which was called the "Brazilian California" during the 1980s and early 1990s. On the one hand, this has increased the city's wealth and turned it into a sophisticated center of services for Brazil and South America but, on the other hand, the image of a new "Eldorado" attracted many migrants from impoverished areas of Brazil leading to a rapid population growth and the appearance of slums (favelas as they are called in Brazil) including all the negative aspects associated with them like drug trafficking and