USDA ERS-Brazil’s Ethanol Industry: Looking Forward

USDA ERS issues report: Brazil’s Ethanol Industry: Looking Forward

Brazil is a major supplier of ethanol to the world market, the result of its natural advantage in producing sugarcane, productivity increases, and policies stimulating the supply
of feedstock and of sugar-based ethanol. Global demand for ethanol and other biobased
fuels is expected to grow in response to mandates for increased use of renewable fuels
around the world. Brazil will be well positioned to fill the growing world demand for
ethanol. However, Brazil’s ability to supply the export market depends on its domestic
ethanol use mandate, world sugar and oil prices, the currency exchange rate, and the
infrastructure to move ethanol to ports. Brazil is challenged with sustaining production
growth in the ethanol sector so as to meet increasing domestic demand and, at the same
time, maintain its position as a major supplier of ethanol to world markets that are
growing rapidly in response to their own ambitious targets for renewable energy use.

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