In the first half of 2017, Brazil’s economy reached a turning point, exiting from the deepest recession in decades. The economy was supported by a record-high agricultural harvest and an uptick in consumption, as a result of lower inflationary pressures, decreasing borrowing costs and positive sentiments over the adopted government reforms. Based on these fundamentals, in October 2017, the IMF raised its growth estimates for Brazil’s economy from 0.3% to 0.75% in 2017, and from 1.3% to 1.5% in 2018. The institution defended the government drive towards fiscal sustainability, including the adopted public spending cap in December 2016 and the ongoing pension reform, as key measures for the recovery of confidence and private sector investment. Nevertheless, economic growth is projected to remain subdued in the medium term, at about 2% per year through 2022, mainly due to the recent rise in political instability that poses risks to the government’s reform agenda. New corruption investigations surrounding top government officials coupled with the upcoming general elections in October 2018, are rapidly closing the window for legislative action. Notably, reforms of the pension system, public healthcare, tax code, and infrastructure concessions regime are seen as essential to support macroeconomic stability, secure confidence and bring the economy back to its potential.

FOREWORD

01 EXECUTIVE SUMMARY

Sector in Numbers

Sector Overview

Sector Snapshot

Driving Forces

Restraining Forces

02 SECTOR FORECAST

Macroeconomic Outlook

Economic Sentiment

Sector Outlook

Sector Concentration

03 SECTOR IN FOCUS

Main Economic Indicators

Main Sector indicators

Biofuel Raw Material Planted Area

Biofuel Raw Material Production

Biofuel Production

Fuel Sales

Biofuel Sales

Vehicle Sales

Global Positioning

Foreign Direct Investment

Main Investment Projects

Enterprises and Employment

04 COMPETITIVE LANDSCAPE

Timeline Brazil Biofuels

Highlights

Top Companies

Top M&A Deals

M&A Activity, 2015-2017

05 COMPANIES IN FOCUS

Raizen Energia SA

Biosev SA

Sao Martinho SA

Odebrecht Agroindustrial SA

Tereos Internacional SA

06 REGULATORY ENVIRONMENT

Key Bodies

Main Policy Instruments

Government Programmes

07 ETHANOL

Highlights

Main Events

Anhydrous Ethanol Production

Focus Point – Anhydrous Ethanol Production by State

Hydrous Ethanol Production

Focus Point – Hydrous Ethanol Production by State

Anhydrous Ethanol Sales

Hydrous Ethanol Sales

Gasoline Prices

Hydrous Ethanol Prices

Ethanol External Trade

Gasoline External Trade

08 BIODIESEL

Highlights

Main Events

Biodiesel Production

Focus Point – Biodiesel Production by Region

Biodiesel Sales

Prices

External Trade