SUGAR & BIOENERGY (continued)

Market

Flex fuel vehicles that run on gasoline, or a combination of gasoline and ethanol, have proliferated in Brazil since they were introduced in 2003. Today, nine out of 10 vehicles sold in the country are flex fuel. Driven by economic growth, the fleet is increasing and creating a larger demand for ethanol. Ethanol made from sugarcane is the most economically and environmentally attractive of today's major biofuels. While the market for sugarcane ethanol today is largely in Brazil, growth in exports could become a future opportunity.