Raizen Sees Brazilian Millers Favoring Ethanol at Harvest Start
This article is for subscribers only.
Millers in Brazil, the world’s largest sugar producer, will favor ethanol output at the beginning of this year’s cane harvest because sugar prices are low, according to a joint venture of Royal Dutch Shell Plc and Cosan Industria & Commercia SA.
Measures taken by Brazil’s government to increase fuel prices and raise the amount of ethanol blended into gasoline will help boost biofuel demand, said Ivan Melo, a commercial director at the joint venture known as Raizen. Sugar fell 16 percent last year and 27 percent in 2011, the biggest two-year drop since 1999. Raizen produces sugar and ethanol.