ADM in talks to tap ethanol in Brazil

Archer Daniels Midland, the world’s largest grain processor, yesterday signalled a wave of expansion in Brazil as it struck a relatively gloomy note on US corn-based ethanol production.

ADM, a leading ethanol producer, has been a cheerleader for the industry in the US but its expansion into Brazil’s sugar-based ethanol industry suggests it wants to diversify from corn-based production.

The US ethanol industry has been under financial pressure in recent months as the price of corn spiralled. Although corn prices have dropped sharply in the past month, the industry still faces difficulties.

The subsidies paid to the industry have come under increasing scrutiny as ethanol production is widely seen as contributing to the rising cost of food.

Financial Times