Brazil Acts to Protect Ethanol Producers as U.S. Imports Jump

Brazil, Business News/Analysis, Marketing/Market Forces and Sales, Opinions, Policy

May 17, 2017

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by Luciano Costa (Reuters) Brazil is toughening requirements for ethanol importers to protect domestic producers from an incoming surge of U.S. corn ethanol, a minister said on Monday, adding that he opposed the idea of new tariffs that could trigger costly retaliation.

Buyers of foreign ethanol will now have to follow a rule applied to Brazilian ethanol producers regarding minimum stocks to guarantee supplies in the market, according to a government decision published in the official gazette on Monday.

Energy Minister Fernando Coelho said the measure aims at giving “fair treatment” to importers and producers in the face of a “violent” increase in shipments from the United States.

Brazil is the main market for U.S. exports of corn ethanol, which have swelled in recent months to fill a gap left by falling domestic output. Brazilian mills have diverted more cane to sugar production because of better returns for the sweetener. READ MORE and MORE (Ethanol Producer Magazine)

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