Corn Ethanol Production in Paraná, Brazil Surges 71.1%, Emerging as a New Hub
2026-05-18 16:35
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en.Wedoany.com Reported - The Department of Rural Economy (Deral) of Paraná State released an analysis indicating that the state's corn ethanol production surged by 71.1%, positioning it as a rising new corn ethanol hub. Brazil's total sugarcane and corn ethanol production is projected to reach 40.69 billion liters, an increase of 8.5% over the previous cycle; among this, corn ethanol's share has jumped from 9% in the 2020/21 season to 28%. Paraná's sugarcane ethanol production for this cycle is estimated at 1.18 billion liters, a slight year-on-year decrease of 2.2%; corn ethanol production is expected to reach 31.54 million liters, a significant increase of 71.1% compared to the 18.436 million liters of the previous cycle. Although the state has not yet formed a mature corn ethanol production hub, major investments are underway, and it is anticipated that Paraná will become one of the country's leading producers in the coming years.

In the dairy sector, milk prices in Paraná are trending higher, benefiting producers. In the first week of May, the price per liter of milk rose to 2.56 reais, an increase of 5.2%. This is attributed to the seasonal decline in milk collection and rising herd feeding costs, which are driving market prices upward while improving producer profit margins. However, the industry still faces import pressure—dairy product imports grew by 26.5% in the first quarter of 2026, with low-priced imported products continuing to enter the domestic market.

Regarding grains, Paraná's corn harvest has performed robustly amid recent climatic fluctuations. Deral stated that sporadic frosts brought by a strong cold wave in the south of the state did not impact the crops. Currently, 96% of the planted area is still in the development stage, with rainfall expected in the second half of May and temperatures stabilizing above 8°C, mitigating the risk of losses.

The egg market is undergoing a deep strategic restructuring, primarily due to the high tariffs previously imposed by the major importing country, the United States. Brazil's poultry industry is redirecting surplus products to high-value-added markets, with procurement revenue from Japan growing by 122.9%. Brazil's total egg export volume fell by 5% in the first quarter, but revenue increased by 16.4%, reaching US$53.942 million. Besides Japan, markets such as Chile, the United Arab Emirates, and Senegal achieved strong growth in both volume and revenue. Paraná, as the country's second-largest exporter of egg products, recorded revenue of US$13.696 million in the first quarter, continuing to consolidate its strength in this sector.

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