Nearly 500 million tonnes were mashed, including 46 refiners that pressed 2.3 million tonnes in the first two weeks of January, when production is normally at a stand-still. Production is 15% higher this season compared to last year, which saw a peak of 490 million tonnes and 22.3 billion litres of ethanol.

Refiners have pressed on this season to keep up with the credit crisis, according to the Brazilian sugar cane industry association, UNICA, which represents 116 refineries and 60% of the ethanol produced in Brazil.

The centre-south region of the country accounts for nearly 90% of sugar cane production in Brazil, and through mid-January had made 24.7 billion litres of ethanol, up 22.5% from the previous year. UNICA reports that 26 refineries remain in production, and 10 should mow right through to the new harvest in April.

The domestic market consumed 16.4 billion litres of ethanol between April and January, UNICA says, a 25% increase over the same period the previous year. The jump is attributed to the flex-fuel fleet of cars increasingly sold throughout Brazil, and the lower price of ethanol versus gasoline.

While experts say the domestic market will continue to support Brazil’s increasing ethanol production in the face of decreasing exports to the US—the country’s best customer for the fuel—car sales locally started dipping in November, and are likely to continue trending downward, according to the Brazilian association of automobile producers (Anfavea).