Corn gains relevance in Brazil and contributes to reducing fuel prices
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Corn gains relevance in Brazil and contributes to reducing fuel prices

Sugarcane ethanol plants are installing corn plants adjacent to their units to ensure production during the off-season, which occurs between December and March. This movement represents the most recent phase in the growing importance of the cereal, which is already responsible for more than a quarter of the ethanol produced in the country, altering the supply dynamic at gas stations.

Aplus, an engineering company based in Blumenau (SC) and specialized in biofuels, has two such contracts underway with Atvos and Aroeira, in addition to five others being negotiated in the Southeast, kept confidential.

Alessandro Salvador, co-founder and commercial director of Aplus, explains that the strategy is based on the complementarity between the two crops. Since sugarcane needs to be processed immediately after harvest, traditional mills shut down during the off-season. Corn, on the other hand, can be stored, allowing continuous operation throughout the year and optimizing existing administrative infrastructure, laboratories, and storage capacity.

Additionally, the cane residue, known as bagasse, is used to feed the boilers, generating steam and energy necessary for the cereal plant's operation. The financial aspect is also relevant; Salvador mentioned a case where a fully built ethanol mill cost approximately R$ 1.4 billion, while the corn unit installed next to it had a cost of about R$ 900 million.

Production data shows significant growth: in the 2014/15 harvest, Brazil produced 80 million liters of corn ethanol, according to the National Corn Ethanol Union (Unem). This volume jumped to 2.6 billion in 2020/21, and in the 2025/26 harvest, ending in March, reached 10.17 billion liters, representing a 29.8% increase compared to the previous cycle, according to Conab. In this last cycle, the cereal accounted for slightly over 27% of the total 37.5 billion liters produced in the country, setting a historical record.

Agricultural production is concentrated in the Central-West region, especially in the states of Mato Grosso, Mato Grosso do Sul, and Goiás, areas where the second corn harvest ensures an abundant supply of raw material. For the 2026/27 cycle, Unem forecasts about 12 billion liters, and Guilherme Nolasco, president of the entity, estimates that the country could reach approximately 20 billion liters by 2032.

The most noticeable impact occurs at the point of sale. Previously, the sugarcane off-season decreased supply and required large reserves, causing fluctuations in ethanol prices at the beginning of each year. With corn mills operating non-stop, the disparity between the harvest and off-season periods is reduced. Industry analysts predict that this will tend to decrease instability and keep ethanol competitive compared to gasoline for a longer period.

According to Nolasco, this extra supply also enabled the increase of the mandatory blend of anhydrous ethanol in gasoline to 32%, called E32, without harming supply. Furthermore, this advance positively reflects on agribusiness, as the demand from the mills has begun to support the price of corn for producers.

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