Ethanol output in Brazil's main center-south producing region tumbled over 25% to 751 million liters in the first two weeks of November compared with the same period last year, trade group UNICA said Monday.
The sharp decline comes as bad weather conditions and a lack of investments to replace aging crops dented feedstock cane output in the region, which produces over 90% of the country's sugar and ethanol supply.
Output of anhydrous ethanol, used for mandatory blending into gasoline, amounted to 298 million liters in the period, UNICA said in a statement.
Output of hydrous ethanol, which can be used as a substitute for gasoline by drivers of flex-fuel cars, stood at 453 million liters.
Ethanol production is expected to decline further in the coming weeks as mills approach the end of the so-called crushing season, which traditionally runs from April to December.
Until November 16, less than half of the 320 mills located in Brazil's center-south region were still operating, UNICA said.
Most plants were expected to shut for the season within the second half of the month, it added.
So far in 2011, Brazil produced 19.9 billion liters of ethanol, down 16.6% compared to a year ago. Sugarcane output decreased by 8.8% to 479.4 million mt.
