Brazil ethanol output revised down 2% despite larger crop

20 September 2012 21:59  [Source: ICIS news]

HOUSTON (ICIS)--Brazil's key centre-south region will produce less ethanol than originally expected, industry group Unica said on Thursday, blaming the reduction on a slower harvest and a drop in sugarcane yields.

Ethanol output in the centre-south is expected to reach 21.05bn litres in 2012, the Brazilian group said, adding the figure is down by 2% from its original projection earlier this year.

Despite the reduction, Unica said its latest projection still represents a 2.5% increase from the amount of ethanol produced in the region last year.

The centre-south accounts for 90% of Brazil's ethanol production.

Unica has revised up its projection for the centre-south sugarcane crop in 2012 by nearly 2%, citing unexpected rainfall in the early months of the harvest.

But while the wet weather helped increase the size of the harvest, it also reduced sugarcane yields, resulting in a drop in sugar and ethanol production.

Centre-south sugarcane yields in 2012 are expected to average 3% less than what Unica had originally anticipated, even though the 2012 harvest in the centre-south will increase by 5.1% compared with 2011, the Brazilian group said.

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By: William Lemos
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