Ethanol exports Brazil - US expected to drop in 2007

The department of Energy states that, as the US are increasing their ethanol production (up 24% in Jan.-August), exports from Brazil may drop significantly in 2007.

The impact may be considerable, as the US represented 57% of Brazil's ethanol export in Jan.-Sep. 2006.

Today, the US counts 106 distilleries, capable of producing 5 billion gallons of ethanol per year; and another 46 plants are under way.

Technically, that may mean the US may not really depend on Brazilian imports - but as Brazil is capable of producing ethanol cheaper, the price (and import tariffs) are key to the actual exports.
While in July, a gallon of ethanol was almost 4 US$, it was only $2.21 on Nov. 8. At that level, the freight cost, and import taxes levied by the US, makes it little interesting for Brazilian companies to export to the US.