Imea Projects 17.8% Increase in Mato Grosso Ethanol Production by 2026/27

According to the latest data from the Mato Grosso Institute of Agricultural Economics (Imea), ethanol production in Mato Grosso is projected to see a significant increase of 17.8% in the 2026/27 harvest, reaching 8.44 billion liters. This growth is primarily driven by corn-based ethanol, which is expected to account for 7.33 billion liters, while sugarcane-based ethanol will contribute the remaining 1.11 billion liters. Imea highlights the rapid expansion of corn ethanol production facilities in the state. Currently, 12 plants are operational, with an additional 10 under construction and five more in the study phase. Furthermore, the production of raw materials for ethanol surpassed 13.9 million tons in the 2024/25 harvest, laying a strong foundation for future output increases. The growing interest in biofuels stems from their decarbonization advantages within the green economy and their potential as an alternative to imported diesel. The economic appeal of biofuels has been further amplified by the rising cost of diesel, influenced by geopolitical tensions. Last year, the state's plants also produced 2.2 billion liters of biodiesel and 2.7 million tons of dried distillers grains (DDGS), a valuable co-product from ethanol processing. Corn has emerged as a prominent crop in Mato Grosso's agriculture in recent years. Initially introduced as a second crop, it provided farmers with an alternative use for their land after the soybean harvest. Looking ahead, Mato Grosso's economy is set for continued expansion. Producers in the region are optimistic about the upcoming trade agreement between Mercosur and the European Union, which is expected to create the world's largest free trade zone, offering substantial opportunities for the state's agricultural exports.