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[BUSINESS] · Brazil · 3 sources

Mato Grosso accounts for 70% of Brazil's corn ethanol output as production hits 5.6 billion liters; grain freight costs,

In the 2024/25 harvest, Mato Grosso solidified its position as Brazil's leader in corn ethanol production, reaching 5.6 billion liters and accounting for about 70% of the country’s total output. The surge underscores the state’s pivotal role in the national biofuels sector and the broader agricultural value chain.

The growth is supported by an expanding industrial base, with 17 operating biofuel mills in the state. Of these, 9 are dedicated exclusively to corn and 3 operate under a flex model (corn and sugarcane), with prospects for continued growth in the near term. This expansion reflects sustained investment in Mato Grosso’s biofuel infrastructure and the strengthening link between corn production and ethanol output.

Separately, the Mato Grosso Institute of Agricultural Economics (IMEA) reports increased road freight rates for grain across most routes in the state. The rise occurs despite a seemingly balanced load supply, suggesting that reduced transport capacity is the primary driver behind higher costs, highlighting logistical pressures in Mato Grosso’s agribusiness supply chains.