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To: Jim McMannis who wrote (20757)	8/3/2007 9:37:57 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 217749

There is a world-wide glut of sugar production and this has been the case for decades. To quote a website: Sugar is grown in approx 110 nations and 75 percent of the world’s approximately 114 million metric tons of sugar produced annually is consumed in the country where it is grown and processed. Historically, "world sugar" prices, the excess portion dumped on the world market, has ranged from $0.03 to $0.60 per pound, with an average price of $0.084 over the past ten years. myinfosource.biz Sugar prices in the US are highly subsidized, as are most agricultural products, at a rate of roughly $0.20 per pound. Nations like Brazil can easily produce excess sugar, yet find themselves blocked by tariffs from exporting their surplus sugar. As a consequence, ethanol appeared to be an ideal solution during a period when their weak currency combined with rising crude oil costs were destroying their economy. So in a real sense, the sugar cane to ethanol industry is economic as a result of surplus sugar production in Brazil. This led to increased sugar planting on newly cleared lands in a non-sustainable manner. The economics of this action are not yet clear. But sugar was not previously planted in these areas because they were less productive. So it is easy to conclude that the economics in these newly cleared lands will be worse. This has predictably led to declining sugar yields per hectare, with each passing year, even with greatly increased use of petrochemical based fertilizers. As a consequence it is not clear what the long-term economics of ethanol production are in Brazil as they scale up. .

To: Jim McMannis who wrote (20757)	8/4/2007 1:13:57 AM
From: elmatador	Read Replies (1) \| Respond to of 217749

Jim, this is the Ethanol thread: Subject 55246