Investment in Brazil’s ethanol industry finally begins to pick up

In Brazil, investment is finally creeping back into the ethanol industry thanks to recent high prices and improved demand for the fuel. Rio Verde, a medium-sized privately owned mill, has announced it will double its production capacity over the next two years to help supply increased demand. Apparently at least eight other companies are looking to invest in production capacity, with Cargill and Odebrecht among the largest. Nearly 80 mills have been mothballed in recent years due to a mix of low sugar and ethanol prices and a policy environment that has made it even harder to survive, leaving few in the position to start investing now but some are taking the plunge.

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