POSITIONING BRAZIL FOR BIOFUELS SUCCESS

As higher oil prices drive global demand for biofuels, Brazil's well-established ethanol industry— including both local and multinational companies—seems well positioned for profitable growth. Although annual global ethanol exports now total only about 6.5 billion liters, McKinsey research suggests that by 2020 they could reach 50 billion to 200 billion liters.

To supply that demand, Brazil's companies will have to ramp up their export capacity significantly, which would require investments of as much as $100 billion in land, distribution infrastructure, and new mills.