Brazilian ethanol production to increase 23 percent in 2008

In Brazil, ethanol production is expected to grow 19 percent this year to 7.238 billion gallons, with a potential increase in exports of 23 percent to 1.1 billion gallons, according to the Brazilian agriculture ministry.

The ethanol increases hasd been expected since last summer, when Bloomberg reported that Brazil’s sugar output iwas expected to decline this year despite record sugar cane harvests, as Brazil diverted more sugar to fuel production. Total harvest was projected at 547.2 million tons of sugar cane, up from 474 million tons last year, but a sugar production decline from 30 million metric tons from 30.2 million last year was predicted.

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