Archer Daniels Midland will enter Brazil's sugar-cane ethanol market, according to company executives. In an interview with the Wall Street Journal, VP Steve Mills said the company was looking at a number of ways to enter the market, including building sugar-cane mills and ethanol plants from scratch, to acquisitions. ADM already owns a small stake in Brazil's largest ethanol producer, Cosan SA. ADM, the #1 U.S. ethanol producer, said sugar-cane ethanol is now a key strategy component: "We're devoting a lot of time and energy to this area. We're not talking about something 10 years down the road. It's on the front burner," Mills said. ADM has seven corn ethanol plants in the U.S. The company did not rule out ultimately importing its Brazilian output to the U.S.; imported ethanol is tariffed $0.54/gallon. ADM has been supportive of the tariff in Senate (which this week extended it to 2010), and said its current move "doesn't necessarily signal" a change in its policy. But a shift in its position, the Journal says 
"could swing momentum in favor of importers, some oil companies and others who oppose it." Brazilian sugar-cane ethanol costs about $0.90 to produce, about 33% cheaper than weather-dependent U.S. corn-based ethanol. ADM made $1.3 billion in F2007 on revenue of $39.6B; analysts estimate 30% of its profits are from ethanol.
Sources: Wall Street Journal
Commentary: The Ethanol Industry: An Insider's Take • Spectacular Ethanol Production Breakthrough • Jeffrey Saut: Four Ethanol Stocks That Will Outperform
Stocks/ETFs to watch: Archer Daniels Midland Co. (ADM). Competitors: The Andersons Inc. (ANDE), Aventine Renewable Energy Holdings Inc (AVR), Pacific Ethanol Inc. (PEIX), Verasun Energy Corp. (VSE), US BioEnergy Corp (USBE). ETFs: PowerShares WilderHill Clean Energy ETF (PBW), PowerShares WilderHill Progressive Energy ETF (PUW)
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