Brazil Raises Gasoline Ethanol Blend to 32% as 20 New Corn Plants Deepen Feed Competition
Updated
Updated · The Pig Site · May 13
Brazil Raises Gasoline Ethanol Blend to 32% as 20 New Corn Plants Deepen Feed Competition
2 articles · Updated · The Pig Site · May 13
Lula's April 30 decree lifts Brazil's mandatory gasoline ethanol blend to 32% from 30%, with biodiesel rising to 16% from 15%, increasing corn demand from the fuel sector.
31 corn ethanol plants already give Brazil 12.93 billion liters of annual capacity, and 20 more are under construction as the industry shifts away from sugarcane.
USDA sees Brazil's 2026/27 corn area edging up to 23 million hectares from 22.8 million and output reaching 136 million metric tons, but feed buyers face a growing fight for supply.
A 26% jump in urea prices and strong Chinese soybean demand could still steer farmers toward soybeans in the June-September planting window, limiting corn growth despite ethanol incentives.
Global grain stocks and a forecast 5% rise in US corn output offer some cushion, but El Niño risk and the May 14-15 Trump-Xi summit could quickly reshape feed-market pressure.
As Brazil bets big on corn for fuel, will a fertilizer crisis force its farmers to plant soybeans instead?
Is Brazil's green energy push about to trigger a global food crisis amid geopolitical turmoil?
Brazil’s 32% Ethanol Mandate: Impacts of Corn Ethanol Growth on Energy Security, Food, and Sustainability
Overview
Brazil is making a major move in its energy policy by increasing the mandatory ethanol blend in gasoline from 30% to 32%, as announced by President Lula da Silva. This decision, considered by the Energy and Mines Ministry, is designed to boost Brazil’s energy independence and support its ambitious decarbonization goals. By raising the share of domestically produced ethanol, Brazil aims to achieve self-sufficiency in gasoline production, which is especially important given global oil price fluctuations and geopolitical uncertainties. Comprehensive programs like RenovaBio further highlight Brazil’s commitment to reducing carbon emissions and advancing a sustainable energy future.