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Corn Ethanol Production Booms in Brazil

Brazilian Corn Ethanol Union estimates the sector will produce 2.5B liters of corn-based ethanol in market year 2020/21

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A report earlier this month from USDA’s Foreign Agricultural Service (FAS), Corn Ethanol Production Booms in Brazil, stated that, “Plentiful, and generally cheap, corn supplies in Brazil’s Center-West region have enticed investment in the corn ethanol sector over the last few years. There are currently 16 corn ethanol plants in the Center- West states of Mato Grosso, Goias, and Mato Grosso do Sul. At least four units are corn-only plants, while the rest are flex-plants that produce ethanol form both sugarcane and corn.

“Even though Brazilian ethanol demand has dropped in 2020, due to the COVID-19 pandemic, investors are optimistic that the market will rebound by the time construction on the plants is completed in 18 to 24 months.

"The Brazilian Corn Ethanol Union (UNEM) estimates that the sector will produce about 2.5 billion liters of corn-based ethanol in market year 2020/21. If all the ongoing projects are built as planned, Brazil’s corn ethanol production could top 5.5 billion liters per year, consuming more than 13 million metric tons (mmt) of corn annually.”

Read more at Farm Policy News.

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