Despite falling demand, CJ Selecta mulls to open first ethanol mill

Coronavirus (covid-19) is impacting various industries worldwide. And the Brazilian ethanol industry has also suffered because of covid-19 outbreak.

According to the media report, when other mills have reduced biofuel production the soy crusher CJ Selecta of Brazil plans to build its first ethanol mill by year-end.

In an interview with the Reuters, Chief Executive Officer Guilherme Tancredi said, “CJ Selecta is building the plant to diversify its products and strengthen sustainability commitments. It is a long-term project. The current scenario does not worry us”

Following the sharp decline in the prices of crude oil, the ethanol producers in Brazil are mulling to reduce ethanol production and diverting more cane for sugar production.

The Brazilian mills are flexible to produce both sugar as well as ethanol depending on the prices. In the last two seasons, 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.


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