Grainnet

By Frank Zaworski, Grainnet Editor

Even though Brazil is the world’s largest producer of ethanol (36%), there is still a great deal of expansion going on in the sugar cane-to-ethanol industry.

According to Phil Corzine, general manager of South American Soy LLC, sugar cane is taking a lot of acres away from soybeans in Brazil.

South American Soy is an agricultural production, investment and management company that operates a 3,500 farming operation in Brazil’s northern state of Tocantins.

“Sugar cane plants are going up all over,” said Corzine who in addition to managing the Tocantins operation farms land near Assumption, IL.

Each sugar plant consists of a sugar mill and an ethanol production plant.

History of Sugar Cane in Brazil

History notes that sugar cane production in Brazil started in the 16th century.

In 1931, a 5% (E5) blend of ethanol and gasoline was compulsory for vehicles.

During the Second World War, the Northeast region of Brazil used an E40 blend.

The country had 41 distilleries in operation at that time.

The ethanol industry began to take off in 1975 when a mandate for E20 produced from existing sugar cane was supported by the government.

In 1979, distilleries became autonomous and engines that could use E100 were developed.

According to an agricultural industry group in Sao Paolo, the ethanol industry was de-regulated in the 1990’s.

A strong expansion of cane production resulted from increasing sugar imports.

Corzine said the current contract for growing sugar cane in Brazil is three to five times more profitable than soybeans.

“One planting lasts from five to seven years and the contracting mill will do some or all of the work,” he said.

Corzine said a farm needs to be within a 50-mile radius of a sugar plant to make growing cane worthwhile because the cane loses a good deal of sugar content if it sits on a truck too long.

“At the moment, we don’t have a mill in our area,” he said.

“We would like to have a biodiesel plant close by.”

Corzine said that South American Soy is currently offering investment opportunities for anyone interested in joining the Brazilian operation.

The business has 300 units available priced at $12,000 per unit.

For more information, call 217-649-1990.

See Related Websites/Articles:

• South American Soy
• Foreign Agriculture Service
• Food and Agriculture Organization

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