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By the way,.Brazil gasoline alcoholis are currently US corn alcohol. US subsidies to corn and subsidies to.any ethanol.resulted that selling cane ethanol to US

• ufo 13y ago
  The problem in Brazil is more structural and political than it has to do with US corn subsidies. Through Petobras, the government kept gasoline prices artificially low for a long time and that severely hampered the ethanol producer because here in Brasil the ethanol prices are tied to the gasoline ones (an important part of the ethanol demand is the flex fuel cars that can choose between both fuels and if ethanol is above 70% of the cost of gasoline then gasoline becomes more cost effective). So basically the ethanol infrastructure got all messed up to the point were it couldn't even keep up with the domestic supply. If it were not for that then brazilian ethanol would actually be able to compete with some of the american ethanol because sugar cane gives higher yields and nowadays you can charge a premium for being more environmentally friendly.