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Ethanol Production in Brazil Jumps 20% Thanks to Country's Eco-Friendly Fleet

31 December 2007

BRAZIL - Brazil's production of ethanol grew approximately 20% in the current crop, and sugarcane production increased at an average of 11% per year in the last five years. The information was supplied by the secretary of Production and Agroenergy at Brazil's Ministry of Agriculture, Livestock and Supply, Manoel Bertone.

According to him, the increase is explained mostly by sales of flex-fuel vehicles, which represent 90% of all new automobiles manufactured in Brazil.

The sugar and alcohol sector is restructuring itself so as to cater to the expansion of global ethanol and biodiesel markets. "For the time being, the factor that determines the growth of supply is still the domestic market," said Bertone.

According to him, domestic demand for alcohol should rise even further in 2008 and sugar prices should recover in the international market, which should favor the segment.

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Source: Brazzil Magazine

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