Brin-l Digest, Vol 381, Issue 3

[Alberto Monteiro]

Dan M. wrote:
> 
> It makes sense, that if you take 30% of the supply off the market,
> prices will rise substantially.
> 
> Brazil is doing similar things with sugar cane ethanol.
> 
The difference is that Brazil begun the sugar cane program decades
ago. At that time, there was also an option to try a biodiesel
program, but it was considered economically (and, probably,
politically - we were under a relatively totalitarian dictatorship
then) inviable.

And the ethanol program only survived the harsh 90s because
it was mandatory - at some point, the sugar cane producers
stopped producing ethanol and only produced sugar (we were
under a relative democracy then).

Alberto Monteiro