Ethanol production in Oct/Dec 2014 hit a three-year high of 594 mln litres, data from FranceAgriMer show. Production from sugary feedstock reached a record 356 mln litres, up 5% on the year. Grain ethanol output fell by 5% to 220 mln litres. Total 2014 ethanol output was up 2% at a record 1.860 bln litres, out of which 878 mln made from grains (+ 3%) and 937 mln from sugary feedstock (+1%).
The higher blend is the latest of several measures taken by the government expected to have a positive effect on the industry’s bottom line going forward.
In the past years, local firms such as Raizen , Biosev, Bunge, Sao Martinho and Guarani have struggled to post consistent and robust profits as rising production costs combined with government gasoline subsidies have squeezed mills’ margins.