Brazil's exports of sugar-based ethanol between January and October were up 70 percent relative to the same 10-month period last year, producers said Tuesday.
A total of 3.4 billion liters (almost 900 million gallons) was exported during the first 10 months of the year, according to Unica, an organization that represents sugarcane, sugar and ethanol producers in south-central Brazil.

 

That region, led by Sao Paulo, accounts for 60 percent of sugarcane and ethanol output in Brazil, the world's leading producer and exporter of sugar and sugar-based ethanol.

 

The bulk of Brazil's ethanol exports go to the United States.

 

Accumulated ethanol production this year came in at 20.2 billion liters through the end of October, up 15.41 percent compared to the same period of 2007.

 

Brazilian domestic demand remained strong, with sales of 1.83 billion liters in October, 15 percent higher than in the same month of last year.

 

The Unica report said the lack of liquidity in the financial system and resulting inability of companies to obtain working capital and cover exporting costs have led many ethanol producers - which are seeking to finance the end of the harvest and pay their suppliers and employees - to sell more to the domestic market.

 

In turn, domestic prices have fallen and spurred ethanol consumption by Brazilian consumers.

 

Most Brazilian cars can run on either gasoline or ethanol.