2009-2011 Supply Shortage
Since 2009 the Brazilian ethanol industry has experienced financial stress due to the credit crunch caused by the economic crisis of 2008; poor sugarcane harvests due to unfavorable weather; high sugar prices in the world market that made more attractive to produce sugar rather than ethanol; and other domestic factors that resulted in a decline of its annual production despite a growing demand in the local market. Brazilian ethanol fuel production in 2011 was 21.1 billion liters (5.6 billion U.S. liquid gallons), down from 26.2 million liters (6.9 billion gallons) in 2010. A supply shortage took place for several months during 2010 and 2011, and prices climbed to the point that ethanol fuel was no longer attractive for owners of flex-fuel vehicles; the government reduced the minimum ethanol blend in gasoline to reduce demand and keep ethanol fuel prices from rising further; and for the first time since the 1990s, ethanol fuel was imported from the United States.
Read more about this topic: History Of Ethanol Fuel In Brazil
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