Brazil to increase corn ethanol share to 30% in 2026/27 season

rapid expansion of ethanol mills in the Central-West and booming second-crop corn production. The segment’s growth stems from abundant corn supplies — Brazil is the world’s third-largest producer — and strong cost competitiveness. Ethanol mills primarily rely on second-crop corn, which made up 80% of Brazil’s total grain output in 2024/25. This provides processors with a steady feedstock base without competing with the food sector. Corn ethanol also benefits from lower production costs: on average BRL 1.85/litre compared with BRL 2.45/litre for sugarcane ethanol. Valuable byproducts, including DDG and vegetable oil, further enhance profitability. One tonne of corn yields 420–460 litres of ethanol, 260–300 kg of DDG, and 15–20 kg of oil — supporting additional revenue and reducing feed costs in intensive livestock production. Despite strong growth, the industry faces challenges, particularly its dependence on biomass — mostly wood chips — for steam generation. As the sector ...