Brazil is the world’s largest producer of ethanol from sugarcane. However, after a record corn crop pushed domestic prices of the grain down, the country may consider producing the biofuel from corn. Brazil’s corn output has more than doubled in the past 11 years reaching an output of 81 million metric tons in 2012 -13 as farmers began using more modern technology, more fertilizer and planting two crops per year. For 2013-14 output is expected to drop to 79.8 million metric tons in response to the price drop. The Brazilian government may consider financing ethanol distillers in remote corn producing areas that are not connected to ports or consumer markets to avoid criticisms and concerns over food prices and livestock feed prices. In some areas of the country it costs more to transport the grain than to produce it – using it locally to produce ethanol would made economic sense.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service