Brazilian poultry giant concerned about competition with ethanol plants for corn

In Brazil, Reuters reports that the country’s largest poultry producer has flagged the potential for increased competition for corn in the center-west region due to increased ethanol production. The company is concerned that increased demand for corn will raise its feed costs and negatively impact its margins. Ethanol production from corn remains a small fraction of the country’s ethanol production that is heavily dominated by sugarcane but due to logistics, cane-based ethanol more viable for export and corn-based ethanol more appropriate for domestic ethanol demand.