Brazilian Ethanol Production Up In 2008; Exports Could Rise 23%

Brasilia, Brazil (AHN) - The world's largest ethanol producing nation, Brazil, is expected to produce 7,238 million gallons this year, while boosting exports by as much as 23 percent.

Brazil's Agriculture Ministry reported ethanol production could hit 7,238 million gallons in 2008, increasing by as much as 19%.

Brazil, which produces ethanol from sugar cane, consumes much of the biofuel within the country as fuel or gasoline additives. With experts predicting a record high sugar crop this year, exports could grow by as much as 1,109 million gallons, up from the earlier target of 898 million gallons a year.

At the same time, Brazilian President Luiz Inacio Lula da Silva said it was an "absurd distortion" to blame the production of biofuels for the current global food crisis. The Agriculture Ministry argued that Brazil uses no more than three percent of its agricultural lands for ethanol production, refuting claims that food staples were being driven off of farms to make way for organic oil substitutes.