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2018/19 Ethanol Margins in Brazil Improve

During the 2018/19 sugar season, the flexibility of Brazilian mills to produce sugar and ethanol was proved. The ethanol production limit was reached, when its share hit 64%, compared with 47% in 2017/18 crop. Mills started to allocate most of the cane to ethanol from September 2017, due to the fall in sugar prices on the world market and the change in the pricing policy of gasoline on the domestic market, which was accompanied by rising oil values on the global market.

These factors contributed to the fact that the main ‘asset’ of the Brazilian sugar sector during the 2018/19 cycle was fuel ethanol destined for the local market.

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Enclosed data were extracted from the survey entitled "Production costs of sugarcane,sugar, ethanol and bioelectricity in Brazil", carried out by the Program of Continuing Education in Economics Management (PECEGE) in partnership with the Brazilian Confederation of Agriculture and Livestock (CNA) and the Organization of Sugarcane Planters of the Center-South Region of Brazil (ORPLANA). Click below for more information on the production costs of the Brazilian sugar industry and its perspectives.

Sugarcane Ethanol Production Brasil

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