Corn ethanol to impact exports as of current crop harvest

Brazil, the world’s third-largest corn producer, is expected to increase output in 2023 while also increasing domestic consumption proportionally. The production of ethanol from corn, which is becoming a reality in states such as Mato Grosso do Sul, Goiás, and Mato Grosso, is contributing to this increase in consumption. The information comes from Abramilho, the Brazilian Corn Producers Association, which launched the national planting of corn’s second crop this Wednesday (15) in Campo Grande (MS).

According to the association, in 2022, Brazil reached the mark of 5.5 billion liters of corn ethanol, an increase of 800% from the last five years. The expectation for 2030 is to reach 10 billion liters of fuel.

“Despite producing only 10% of the world’s corn, Brazil will become the export leader in 2022/23. However, there will be a revolution in cereal consumption, with a foreseen increase, owing largely to corn ethanol, which should provide opportunities for rural producers. As Mato Grosso did, other states will likely take advantage of this opportunity. And, due to the increased demand for this cereal, Brazil will need to increase production in the coming years to continue serving exports,” explains Glauber Silveira, president of Abramilho.

Regarding the distinctions between hybrids destined for trade (export), cattle feed, and ethanol, Produce’s Product Manager and agronomist Juliano Ribeiro clarifies that the same bar is used for all purposes and that the new markets are already demanding an increase in production and an increase in quotas to favor producers. “The market in Mato Grosso, which is now the largest producer of ethanol from corn, consumes more than 20% of its state production; in Mato Grosso do Sul, the plants should demand 30%; at this rate, we will need to develop our productivity to continue with exports,” the Produce agronomist commented.

Source: Notícias Agrícolas

To read the original reporting, access: https://www.noticiasagricolas.com.br/noticias/milho/341464-etanol-de-milho-impactara-nas-exportacoes-do-cereal-ja-nesta-segunda-safra.html#.Y-51EnbMLIU

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