Brazil to increase ethanol output

Brazil forecasts growth in its cane harvest and sugar output, despite the drought in its main sugar-producing region.

In its first estimates, Brazil's Conab crop bureau anticipates the country's cane, ethanol and sugar output in 2014-2015 to reach 672 million tonnes, a 2% increase year on year.

Ethanol output will rise by 1.5% to 412 million litres and sugar production will rise by 4.2% to 40 million tonnes.

The region's cane crop will also rise 1.8% year on year to 613 million tonnes, boosted by a 4.5% increase to more than 8m hectares in harvested area.

As the drought hit a large proportion of the Centre South region, responsible for some 90% of Brazil's cane production, Conab appreciates that 'the lack of rain combined with the high temperatures impacted productivity'.