In Brazil they are looking to utilize bagasse, or sugar cane waste for biodegradable packaging. Bagasse is currently burned by farmers but soon this practice will be banned.
Three firms (Viveiro Flora Brasil, Lótus Soluções Ambientais, Floema Nutrição Vegetal and the Federal University of Uberlândia (UFU) are involved with this research. They hope testing will be completed in 2009 and the project can then move into commercial production, starting with planting containers (which would be buried with the plants, and naturally decompose in the soil), supermarket carry bags and disposable cups.
Of course these products are already available elsewhere so no need to wait. Buy these sugarcane bio-packaging products here.