Brazil Considers Corn Ethanol Production
December 11, 2013News article: http://www.bloomberg.com/news/2013-12-02/brazil-considers-corn-ethanol-as-grain-prices-decline.html
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Brazil's government is exploring subsidies for ethanol production from corn after a record crop sent the domestic prices down. The country is also studying to develop a support policy for corn ethanol production which is likely the best outlet for corn surplus.
Corn prices in Brazil have fallen as the country's production has doubled in the past 11 years. Domestic output reached 81 million metric tons in 2012-13 as farmers started planting two crops per season and used new technologies and more fertilizer.
Production of ethanol from corn faces criticism within the government amid concerns over food prices and livestock feed costs. Brazil would consider financing ethanol distillers in remote corn-producing areas that are not connected to ports or anywhere near consumer markets.
Brazil is the world's largest producer of sugarcane ethanol and ranks second after the U.S. in ethanol production.
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