The scenario is uncertain for Brazilian corn ethanol producers in the coming months. On the one hand, the delay in the sugarcane crop planting and the high volume of previously-sold sugar show that biofuel supply will be limited. On the other hand, the restrictive measures to contain the transmission of the new coronavirus in recent weeks indicate a reduction in the demand for fuels. “Last year, just when the harvest (of sugarcane) had started (in April), we ran out of demand. And I think we may be seeing the same move this year”, says the sugar and ethanol specialist at Rabobank Brasil, Andy Duff. “But we don’t know what population’s reaction will be and to what extent mobility will be reduced, or how how long it will last”, he says. The president of the National Corn Ethanol Union (Unem), Guilherme Nolasco, believes that, despite lockdown and the scenario of the coronavirus pandemic, the year can be positive, and production may increase. “In 2020, even with the covid-19 pandemic raging, we grew 60% due to new plants” he says.
Sources: Agência Estado / Nova Cana (*Translated by Ia Niani)