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Brazilian biodiesel

Overview

Already the world’s leading ethanol exporter, Brazil has outstanding potential to repeat this success in biodiesel. But this nascent sector has found itself bogged down by unforeseen difficulties, including the soaring price of the vegetable oil feedstock and unhelpful government policies on taxation and demand management. As things stand, the industry is on a loss-making path.

However, biodiesel is one of the Lula administration's few flagship agricultural policy initiatives....

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