January 10, 2008

 

Brazil ethanol to reach 41.6 billion liters in 2017-18

 

 

Brazil's Ministry of Agriculture forecasts the country's ethanol production will more than double to 41.6 billion liters in 2017-18 compared with 18.9 billion liters in 2006-07, the ministry said in a press release on Wednesday (January 9, 2008).

 

The ministry said that in 2017-18, 30.3 billion liters will be used for the domestic market, while 11.3 billion liters will be for export.

 

Ethanol will join a select list of exports, along with soy and meat, the press release said.

 

The data came from a study called Brazil and World Agricultural Projections from 2006-07 to 2017-18.

 

The higher volume of ethanol will require an increase in the amount of land used to grow sugarcane, the study said.

 

"The expansion will be in pasture lands," Brazilian Agriculture Minister Reinhold Stephanes said.

 

The ministry estimated that 10.3 million hectares will be devoted to growing sugarcane by 2017-18, up about 4 million hectares from 6.2 million hectares at present.

 

The press release forecast that Brazil's sugar industry will continue to be the most competitive worldwide, with sugar production reaching 43.2 million tons in 2017-18, up from 12.5 million tons from 2006-07.

 

Brazil is the world's No. 2 ethanol producer after the U.S. and leading ethanol exporter. It is also the world's top producer and exporter of sugar.

 

The study also forecast that soy production would rise 30.9 percent to 75.3 million metric tons by 2017-18 from 57.5 million tons in 2006-07.

 

The planted area set aside for soy is expected to increase to 25.9 million hectares in 10 years compared with 20.6 million hectares in 2006-07, the study said.

 

Soy exports are projected to climb 40 percent in 2017-18 compared with 2006-07.

 

The release said that corn production is expected to rise to 64.1 million tons in 2017-18 versus 51 million tons in 2006-07.

 

Brazil is the world's second-largest exporter of soy.