Brazil's Corn Ethanol Industry Struggles to Prove Sustainability

Brazil's corn ethanol industry is facing a challenge in convincing international markets that its expansion can be sustainable without competing with food production or driving deforestation.

The industry has already demonstrated its capacity to sharply expand corn supplies, but winning over overseas consumers will require the country to better explain the sustainability of its production model as global regulation becomes increasingly fragmented, according to Inpasa Trading Vice President Gustavo Mariano.

Mariano said that the biggest challenge today is integrating international regulations, particularly against a more fragmented geopolitical backdrop. The entire production chain, not just the industry, needs predictability.