MercoPress. South Atlantic News Agency

Brazil forecasts record production of sugar cane ethanol

Brazil is forecasting for this year its greatest production of sugar cane ethanol ever according to the country's National Supply Company, Conab. The total volume is estimated between 26.4 and 27.4 billion liters, 14.9% and 19.4% higher than in 2007.

Of that total volume 4.2 billion liters will be exported (2.5 billion to the US) adds the report. Current exports are in the range of 3.4 billion liters annually. The sugar cane crop is also set to be a record, in the range of 607 to 631 million tons (8.8% and 13.1% higher than the previous harvest). Of that volume 321 million tons are earmarked for bio-fuels and 258 million for sugar production, which represents an increase of 12% over 2007, with 35 million tons of sugar. Conab also revealed that for the current crop, the sugar cane planted area jumped from 7 to 7.8 million hectares, taking over mainly pasture land. Brazilian sugar cane production coincides with the controversy over using food crops to produce bio-energy. Some experts argue that using food crops puts at risk food security, food prices and even the environment. But blaming the current food and food price crisis on bio-fuels is an "absurd distortion" has repeatedly underlined Brazilian president Lula da Silva. Two weeks ago during the regional conference of FAO, Lula da Silva insisted that bio-fuels are not the "villains" which threaten global food security in poor countries, but rather a tool for economic development. According to Conab, Brazil has 276 million hectares of farmland, of which 72% are pastures, 16.9% planted with cereals and oil seeds and only 2.8% with sugar cane. Brazil leads together with United States the world production of ethanol, most of which is absorbed by the domestic market as a gasoline additive.