Ethanol consumption went down in Brazil in 2011

According to ANP, the petrol agency, Brazilian consumption of hydrated ethanol plummeted by 29% in 2011 against 2010, while anhydrous consumption increased by 18.3%, in line with gasoline which went up by 18.8% yoy. Brazil again had to import ethanol from the US to supply its ethanol and blend markets, as high sugar prices inverted the usual production ratio and a slump in cane production impacted the whole chain. 2012 is likely to be a repeat of 2011, with exports further sliding, imports from US rising and ethanol production down. Given funding shortages and the time needed to renovate old cane it would be surprising to see any yield improvements before 2014-15.