Ethanol has remained the favourite in Brazil from a revenue perspective; therefore, companies are eyeing to invest more to expand its production. Chinese commodities trader COFCO International is investing in its cane processing plants in Brazil as it anticipates that in next season Ethanol will give better profits than sugar.
According to Reuters, during Datagro 2019 International Conference on Sugar and Ethanol, the company’s global head of soft commodities, Marcelo de Andrade, talking to media said, “COFCO is building new distillation columns and tanks at three of its four plants in Brazil, to increase ethanol capacity.”
The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production. The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased.
Brazil, who usually goes for ethanol production from sugarcane juice, is also aiming to produce ethanol from corn. Sao Martinho SA, one of the country’s largest sugar and ethanol producers, plans to build a facility to produce ethanol from corn in the state of Goias.
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