Brazil-US$500 million sugar investment.

BRAZIL.

US$ 500 MILLION INVESTMENT.

Grupo Cabrera in Brazil, announced that American company, Archer Daniels Midland Co (ADM), are investing US$500 million into a joint ethanol venture with them.

Chairman of ADM Pat Woertz, said "the joint venture in Brazil will produce 70-90 million gallons of ethanol per year".

Archer Daniels, are very big players in the corn based ethanol market of the United States, the plans to go into sugar based ethanol is a natural extension of this business.. Timing would appear to be perfect, as currently there is a glut of sugar in Brazil, owing to the downturn in exports caused by the global financial crisis.

The large traders such as Cargill, Bunge, Fluxo and Dreyfus have already bought their supplies for the 2008-2009 season. Cargill are by far the biggest players in the sugar market, shipping close to one million tons of sugar this year.

Brazil is the worlds largest producer of sugar