Brazil's Corn and Sorghum: Fueling the Future of Ethanol

Brazil's corn production is set to reach 125 million metric tons by 2024/25. Ethanol consumption from corn is expected to more than double, with production of the fuel growing rapidly. Sorghum is emerging as an alternative, with operations starting soon in Mato Grosso do Sul.

Brazil's corn production is projected to reach around 125 million metric tons for the 2024/25 crop season, according to Paulo Bertolini, president of Abramilho. The Brazilian corn industry's expansion aligns with the burgeoning demand for corn-based ethanol, which could soon more than double its current consumption of 20 million tons.

As analysts at Citibank predict, Brazil's production of corn ethanol is expected to rise significantly, reaching 16 billion liters by 2032 from the 9.5 billion liters forecasted for 2024/25. In a bid to strengthen its renewable energy sector, the country is planning to increase the ethanol proportion in gasoline from 27% to 30%.

In tandem with corn, sorghum is gaining attention as an alternative source for ethanol production. Bertolini mentioned that some plants are equipped to process sorghum, and operations are set to start later this year in Mato Grosso do Sul. Highlighting its potential, Brazil stands as the third-largest sorghum producer globally, albeit with only 5 million tons produced.

(With inputs from agencies.)