A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

UNICA ethanol production, sales increase for the first half of November



UNICA, Press release, 2017/12/01



Europe has recently ended sugar quotas leading to an increase of the European production which contributed to destabilizing a bit more the international equilibrium and therefore brought sugar prices down. A 3 year wait was necessary to know the main beneficiary of the last CAP reform: it is neither the English Crown nor the Prince of Monaco, it is Coca Cola who, by buying around a million tons of sugar every year to supply the European market, should earn somewhere between 300 and 500 million per year thanks to the alignment of the European market on the international price!

Faced with his new deregulation crisis, the recent press release from UNICA
1 (Brazilian association of sugar cane industries) that we copied here after should be at the center of our attention. Indeed, it appears that Brazil, first worldwide exporter of sugar, transforms its sugar cane into ethanol more than sugar. The provisional numbers indicate that 57% of cane was transformed into ethanol against 52% over the same period in 2016. Brazil has been developing its sugar cane production since the 1970s on the basis of a voluntary fuel ethanol incorporation policy, policy whose main parameter can be adjusted to prioritize food usages and contribute to the stability of markets.

For Europe who has been missing innovative ideas, shouldn’t this development of a renewable energy such as ethanol be seen as a way of smartly participating to the stability of markets not only for sugar but also cereals? Rather than looking to cut in half incorporations mandates for post 2020 like the Commission offers to do in its revision of the RED2 directive, it would be about adopting measures allowing to adjust from one year to another incorporation mandates to focus on food usages for food security purposes and, at the same time, developing a stabilization tool for agricultural markets and a source of alternative energy to fossil fuels
2.

Frédéric COURLEUX



UNICA, the Brazilian sugarcane industry association, has released production data for the first half of November, reporting more than 57 percent of the sugarcane processed went to ethanol production.

According to UNICA, mills in the south-central region of Brazil processed 23.35 million tons of sugarcane during the first half of November, up 7.24 percent when compared to the same period of last year.

Since the beginning of the current harvest, mills in the region have processed 552.95 million tons of sugarcane, down from 562.02 million tons during the same period of the previous harvest.

As of Nov. 16, UNICA said 82 units have concluded harvest activities, down from 115 units during the same period of last year.

During the first half of November, 57.45 percent of the sugarcane processed went to ethanol production, up from 52.05 percent during the same period of 2016.

A total of 1.06 billion liters (280.02 million gallons) of ethanol was produced during the first half of November, including 599.97 million liters of hydrous ethanol and 463.59 million liters of anhydrous ethanol. Since the beginning of the current harvest, mills in the region have produced 23.66 billion liters, including 10.2 billion liters of anhydrous ethanol and 13.46 billion liters of hydrous ethanol, up slightly from the 23.61 billion liters produced during the same period of the previous harvest.

UNICA also reported that 22.21 million liters of corn ethanol was produced during the first half of November. Since April, corn ethanol production has reached 228.39 million liters, up from 92.05 million liters during the same period of the previous harvest.

According to UNICA, the volume of ethanol sold by mills in the south-central region reached 1.1 billion liters during the first half of November, up 15.17 percent when compared to the same period of 2016. Sales included 684.76 million liters of hydrous ethanol sold into the domestic market, up 36.09 percent when compared to the 503.16 million liters sold during the same period of last year. Sales of anhydrous ethanol into the domestic market reached 395.3 million liters. Approximately 23.25 million liters of ethanol was exported during the two-week period.


1 http://english.unica.com.br/in-the-media/40257742920330275760/unica-por-cento3A-ethanol-production-por-cento2C-sales-up-during-first-half-of-november/
2 See this previous article on the flexibility of biofuel policies
http://www.momagri.org/UK/focus-on-issues/Flexible-biofuel-policies-are-possible_1785.html



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Paris, 18 October 2018