Financial Times FT.com

Latin America

Appetite for ethanol strains Brazilian cane millers

By Elizabeth Johnson in São Paulo

Published: January 25 2006 23:43 | Last updated: January 25 2006 23:43

Brazilian sugar cane producers dream of the day when their cane-based ethanol will fuel cars from Stockholm to Tokyo. But for that to happen, they must prove they can produce enough of the biofuel for buyers to rely on year-round.

The country’s biofuels programme is among the most advanced in the world. Nearly 30 years ago, the military dictatorship launched a pro-ethanol push, offering subsidies for cane mills and price controls in an effort to reduce dependence on crude imports following the 1970s oil crisis.

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