abare.gov.au
The outlook for sugar is not just underpinned by sugar prices but also ethanol production and electricity cogeneration. ABARE economist, Max Foster, told the ABARE conference in Canberra today that high sugar prices are projected to lead to an increase in world sugar production over the medium term, which will stem principally from Brazilian cane sugar production for both sugar and ethanol. ‘While sugar will remain the economic driver of the Australian sugar cane industry, there are substantial opportunities in Australia for electricity generation from cane fibre and production of ethanol as a renewable fuel from molasses,’ Mr Glasson said.
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