1. MANAGING Tough Times Brazilian Ethanol

2. MANAGING Tough Times World Ethanol Production (Million Gallons per Year) Country20072008Percent Change Percent of Total (2008) USA6,5009,20042%53% Brazil5,0196,47229%37% EU57073329%4% China4865023% Canada21123813%1% Other31639023%2% Total13,10217,53532%100%

3. MANAGING Tough Times

4. Brazilian Sugarcane vs. U.S. Corn Sugarcane is planted every six years using cuttings. Corn is planted every year using seeds.

5. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn Sugarcane provides five cuttings over six years and then is replaced. Corn is harvested and replanted every year.

6. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn Sugarcane yields about 35 tons (entire plant) per harvested acre. Corn yields about 8.4 tons (entire plant) per harvested acre.

7. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn Sugarcane yields about 4.2 tons of sucrose per acre (10% to 15% of sugarcane yield) Corn yields about 4.2 tons of grain (150 bu. per acre) and about 2.4 tons of starch.

8. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn The sugar (sucrose) in sugarcane can be converted directly to ethanol. The starch in corn is first converted to sugar. Then the sugar is converted to ethanol.

9. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn Sugarcane is cheaper to grow than corn. Sugarcane ethanol can be produced cheaper than corn ethanol.

10. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn The Energy Source for Sugarcane Ethanol is Bagasse, its byproduct. The Energy Source for Corn Ethanol is Natural Gas / Coal.

11. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn An acre of sugarcane produces about 560 gallons of ethanol (35 ton yield) An acre of corn produces about 420 gallons of ethanol (150 bu. yield)

12. MANAGING Tough Times Brazilian Sugarcane vs. U.S. Corn Brazil has great potential to expand sugarcane acreage. U.S. has limited ability to expand corn acreage.

13. MANAGING Tough Times