Ethanol production in Brazil set to surge

February 4, 2013 |

In Brazil, Bloomberg is reporting that ethanol output in Brazil, as opposed to sugar production, is expected to increase at the expense of sugar production this year as producers react to rising oil prices in Brazil and sugar prices which are falling around the globe.

The expected moves come as Petrobras hiked gasoline prices by 6.6 percent and the government indicated that it would boost ethanol blending levels to 25 percent, from the 20 percent levels today. Last year, Bloomberg reported that 49.59 percent of cane production was directed to sugar, up from 48.44 percent the previous year – but with ethanol demand increasing by 320 million gallons, ethanol analysts say that there are strong reasons to increase ethanol production now.

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Category: International

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