News International Sugar Journal

Ethanol shortage in Brazil unlikely to be sorted in the near future [Registered]

Brazil is struggling to produce enough ethanol to satisfy domestic demand, let alone take advantage of the huge US market where restrictions on imports for the first time since 1980 have been scrapped. The US, the world’s largest market for the biofuel, on 1 January 2012, cut a 45 cent-a-gallon tax credit and a 54 cent-a-gallon tariff that protected local companies from foreign competition. Brazil has been unable to take advantage after output dropped 19% this season. Investment in new sugarcane assets and plantations in Brazil plummeted to $700 million last year, from $7.84 billion in 2008, according to Salim…

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