Favorable Environmental and Economic Effects of Corn Ethanol Coproducts in Brazil
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Abstract
Brazil is a traditional producer of fuel ethanol from sugarcane with coproduction of sugar. With this model, producing sugar and ethanol, Brazil became the first producer and exporter of sugar and the second producer of fuel ethanol. However, this model can no longer be expanded. Corn ethanol is becoming the alternative to boost fuel ethanol because of its potential to produce protein which can be used to feed beef cattle. Brazil employs nearly 20% of its territory, nearly 200 Mha, to produce beef cattle and corn ethanol coproducts such as DDG[1], which are the key element to reduce pasture land. This article analyzes this new economic activity in Brazil as well as its potential to be combined with environmental policies to reduce or even stop deforestation in Brazil.
[1] DDG is the abbreviation of Dry Distillers Grains, a coproduct from corn ethanol production, rich in fiber and protein. DDG is commonly used as animal feed, particularly for beef cattle.
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