Many countries are seeing problems for sugarcane production, putting it on South American sugarcane producers to meet the Global demand. With Oil at $100 a barrel, many of these countries are converting to Bio-Fuels. The combination of increasing demand and supply side issues are leading experts to forecast Sugarcane shortages in the coming years.
The price of Sugarcane is expected to increase 15% a year and a number of issues in countries that grow Sugarcane are contributing to this. In China, its main growing region is seeing a drought causing acre production rates to fall dramatically. They are also seeing crop substitution as demand for Corn and Rice grows substantially with their multiplying population.
The EU, having recently passed laws requiring lower engine emissions, is seeing exponential demand growth and it is forecasted that Ethanol imports will be needed in the coming years to satisfy demand. The US and Brazil being two of the largest Ethanol markets are seeing a surge of Flex fuel vehicles and emissions laws that are leading to considerable increases in demand. Also in Brazil, a long time supplier of Sugarcane for Ethanol, torrential rains have lowered production levels. This is all causing a Perfect Storm for Sugarcane producers in Peru.
Stratos Renewables Corp. sees this as the perfect opportunity to emerge as the world leader in Ethanol production. The company is headquartered in Peru, which is known to be one of the best places in the world to grow sugarcane. They intend to grow and produce the Ethanol, then export it to Global markets.
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