Production and use of fuel ethanol in Brazil - BAFF

38
A5. Current expansion of sugar-cane
growing
A5.1.
How would you quantify Brazil’s domestic
demand for sugar and sugar exports?
Only one third of the Brazilian sugar production is sold in the domestic market, 50
percent of which to consumers, and the other 50 percent to the industrial market
(soft drinks, candies, ice-creams, etc.). The sugar demand has been growing by 1.5
to 2 percent a year. For the current 2006/07 crop, Brazil will export around 19.5
million tons of sugar (two thirds of its production). The export volume represents
more than 45 percent of the free market in sugar. Brazil is the world’s leading sugar
producer and exporter.
The sugar-cane production for the 2006/07 crop was close to 425 million tons.
A5.2.
How would you quantify Brazil’s ethanol demand
and exports?
For the 2006/07 crop, approximately 14 billion liters were consumed in the domestic
market, and 3.5 billion liters in export markets. In Brazil, fuel ethanol replaces over
40 percent of the gasoline that would otherwise be used.
A5.3.
What are the sugar-cane supply and sugar and
ethanol production forecasts for the year 2012?
With the growing sales of Flex-Fuel vehicles and the competitiveness of ethanol
with gasoline (with prices in most of the market under 60 percent of the gasoline
price), the sugar and ethanol industry is expected to process approximately 700
million tons of sugar-cane, and to produce 36 billion liters of ethanol and 39 million
tons of sugar in 2012/13. The expansion in supply will take place through the
implementation of new production units, expansion of existing units and increased
productivity in the agribusiness. That expansion is taking place already, as several
dozen units are being built.
A. Fuel ethanol: Activities in Brazil and the world context