Key Points
- Corn ethanol is scaling fast in the Center-West, using mainly second-crop “safrinha” corn grown after soybeans.
- The same plants that make fuel also make DDG animal feed, reshaping livestock costs and export flows.
- The main risk is not food scarcity, but whether sustainability claims survive tougher scrutiny.
A few years ago, corn ethanol was a footnote in Brazil’s energy story. Now it is a fast-growing industry, clustered around Mato Grosso’s grain belt and its long logistics chain.
Brazil has about 24 corn-ethanol units operating nationwide. Mato Grosso is expected to crush roughly 13.5 million tons of corn for ethanol in the 2025–26 cycle, about 26% of the state’s output.
Production is projected to approach 10 billion liters in 2025–26, up from roughly 8.2 billion liters in 2024–25. The story behind the numbers is Brazil’s double-cropping model. Farmers harvest soybeans, then plant corn on the same fields in the same year.
In Mato Grosso, almost all corn is second-crop. That detail changes the usual “food versus fuel” argument. The feedstock is typically not replacing food acreage. It is monetizing a second harvest and pulling investment into storage, trucking, and local services.
Corn Ethanol Faces Credibility Challenges
Corn ethanol also creates a second product stream. For each ton of corn processed, plants produce about 400 liters of ethanol and roughly 300 kilograms of DDG, a protein-rich feed.
DDG can replace part of the soybean meal and corn used in rations, helping stabilize meat supply costs. It is also becoming a trade item. Brazil has moved to open new export channels for DDG, including to China, where imports have been dominated by U.S. supply.
The boom is meeting its first stress tests. High interest rates and weaker oil can squeeze project returns. And prosecutors in Mato Grosso have investigated allegations that some plants burn native wood for process heat.
A practice that would weaken climate benefits if it proves widespread. The sector’s credibility, not its capacity, may become the binding constraint.
Related coverage: Brazil’s Morning Call | Brazil’s Factory Downturn Deepens as Tariffs, High Rates and This is part of The Rio Times’ daily coverage of Latin American markets and financial news.