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Brazil Corn Ethanol Industry Booming
USAgNet - 05/22/2019

The news back in 2014 of a group of investors launching a project to build Brazil's first ethanol plant based 100% on corn raised eyebrows in a country that had invented a national ethanol program entirely based on sugarcane.

According to Reuters, analysts thought the plan carried risks associated with an unstable market for the fuel and uncertainty regarding corn supplies and prices, beyond the fact that there was a general assumption that it was more expensive to produce ethanol from corn than from sugarcane.

Five years on, the group has doubled capacity in the initial plant, built a second unit and announced plans for three more, as Brazilian farmers ramp up corn production.

Two other companies are building 100% corn-based ethanol plants in Brazil, and others are revamping existing mills to run on corn as well in the cane's between-harvests periods, the so-called flex ethanol plants, Reuters reports.

All five FS plants will be located in Mato Grosso, Brazil's top grain state, where corn production has increased by 275% in the last ten years, mostly due to the growing practice by farmers to plant a second crop, normally corn, after the harvest of the main summer crop, usually soybeans.

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