São Paulo – Thirty sugarcane milling plants in Mid-South Brazil have begun processing the 2011-2012 crop ahead of schedule, and are already milling sugarcane. According to the Brazilian Sugarcane Industry Association (Unica), the intention is to add ethanol to the inventories available in the off-season. According to the organization’s projections, there will be no shortage of ethanol in the current off-season period.
"We were aware that upon witnessing the events during this off-season period, several plants had decided to start crushing cane ahead of schedule. Some are unable to do so, because the cane is not always there to be processed ahead of time. But we do realize that a significant effort is underway to raise the funds and add product to the market during the period," explained the Unica director, Antonio de Padua Rodrigues, in a press statement.
According to Rodrigues, in the next few days, more Mid-Southern plants should start milling. The 30 plants combined account for 12% of all the cane milled in mid-southern Brazil, roughly 65 million tonnes per year.
According to a survey conducted by the National Petroleum, Natural Gas and Biofuel Agency (ANP), the price of ethanol has hiked in 24 states and the Federal District last week, and declined only in the states of Acre and Roraima. The highest average prices were recorded in the state of Grande do Sul (2.46 reals per litre), the Federal District (2.45 reals) and the state of Santa Catarina (2.39 reals). The lowest average prices were recorded in Pernambuco (2.01 reals), Paraíba (2.03 reals) and Mato Grosso (2.07 reals).
Water into ethanol
Last Friday (25th), the ANP issued a resolution on the Official Diary by which it raised the amount of water allowed in anhydrous alcohol fuel, which is mixed into the gasoline sold at gas stations, from 0.4% to 1%. The aim is to ensure the domestic market supply during the sugarcane off-season.
The measure will remain in force in the entire Brazilian territory up until April 30th, 2011. According to the ANP, the new specification contemplates the characteristics of ethanol produced in Brazil and abroad. The agency guarantees that the quality of the fuel will not suffer.
*Translated by Gabriel Pomerancblum
