Ethanol Production Rises in Brazil's North and Northeast Despite Milling Decline

According to data from the Brazilian Association of Sugar, Ethanol, and Bioenergy Producers (NovaBio), based on information provided by the Ministry of Agriculture, Livestock, and Food Supply (Mapa), sugarcane milling in Brazil's North and Northeast regions for the 2025/26 season totaled 52.8 million tonnes by the end of February. This represents a 4.1% decrease compared to the same period in the previous cycle. Specifically, the North region processed 6.9 million tonnes, a 5.3% annual reduction, while the Northeast processed 45.8 million tonnes, down 4% from the prior season. Despite the decline in sugarcane processing, the production mix during this period showed a stronger focus on ethanol. Across both regions, sugar production reached 2.988 million tonnes, marking a 13.8% drop compared to the same interval last season. In contrast, total ethanol production saw a significant increase. By February 28, the combined ethanol output for the North and Northeast reached 2.79 billion liters, up from 2.156 billion liters recorded in the same period of the previous cycle. This figure includes both sugarcane-derived and corn-derived biofuels. Breaking down the ethanol categories, anhydrous ethanol from sugarcane amounted to 852.8 million liters, an annual increase of 3.4%. Hydrous ethanol production, however, saw a 3.2% decline, totaling 1.289 billion liters. Notably, corn ethanol contributed significantly, with a total volume of 648.5 million liters, comprising 557.3 million liters of anhydrous ethanol and 91.2 million liters of hydrous ethanol. This highlights the growing importance of corn-based ethanol in the region's biofuel supply.