Cane-ethanol producers in Brazil do not see corn-ethanol as a threat

Plinio Nastari of the agribusiness consultancy Datagro said that the growing demand for ethanol should be used to ensure that corn is not used as a feedstock in the production of biofuels.

Since the turn of the century, corn-based ethanol has tripled in Brazil while cane-based production has stagnated.

Brazil's cane-mills are able to produce sugar or ethanol.

Nastari said at a conference of the sugar industry that Brazil could absorb more corn-based and cane-based cane ethanol. This is not surprising, given how little ethanol is currently used in its fleet of flexible fuel cars.

"It's about 27% of our fleet." There is still room for all modes of transport, not just land. "We believe that very soon, ethanol will be used in sea transport", Nastari said to delegates at a seminar of the International Sugar Organization.

He said that the trend in Brazil was to integrate cane and maize as raw materials for producing ethanol, because corn-only ethanol plants must purchase biomass fuel, which is constantly rising in price.

Bagasse, which is a byproduct of sugarcane crushing can be used by cane mills to convert corn into ethanol.

Brazil increased the blend of ethanol required in gasoline from 27% to 30% earlier this year, which requires well over one billion litres more of ethanol each year. May Angel reported. (Editing by Nigel Hunt, Mark Potter and Nigel Hunt)

(source: Reuters)