A continuous two-stage fermenter with cell recycle at each stage is studied numerically for efficient production of ethanol. In this system, both filtrate and bleed from the first stage are provided to the second fermenter. Using a product-inhibition kinetic model with different saturation constants, operating conditions giving the maximum ethanol productivity attainable at high substrate conversions are examined. For high substrate conversions close to complete consumption, the ethanol productivities predicted for this system are found to be higher than those for a single-stage system and a previous two-stage configuration at the same bleed ratios.