The chart shows the progression in the production of ethanol (“álcool equivalente”) and sugar (“açúcar”), in addition to Total Reducing Sugars (“ART”) and sugar cane ("cana") after 1975, when the Pro-Alcool (Brazilian government program to produce ethanol for automotive consumption) was started.
Based on the chart and our past experience, we may conclude that:
- Until 1985, the production of ethanol grew considerably, thanks to incentives from the Pro-Alcool program.
- Between 1975 and 1985, the production of sugar in
- The drop in ethanol production after 1985 may be attributed to a global decrease in the price of oil.
- After the early 1990’s, the production of both ethanol and sugar picked up again, apparently due to domestic factors that increased the purchasing power of Brazil’s lower-income classes (e.g., the Brazilian Federal government’s “Plano Real”, which brought inflation under control).
Note: production data are in units of equivalent anhydrous ethanol, which is calculated by reducing hydrated ethanol by a factor of .93 – this yields the average alcoholic rate in ethanol used as fuel in
Hear it from the horse's mouth - follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.
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