Sugarcane Crushing Season Begins in South-Central Brazil

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Sugarcane crushing season began in early April for more than 40 mills in south-central Brazil. By the end of the month, almost every mill is expected to have started the 2011-12 season.

According to Uniao da Industria de Cana-da-Acucar (UNICA) (Sao Paulo, Brazil), approximately 570 million tons of sugarcane will be crushed this season, representing a 2% increase from the previous year. Last year, a particularly dry season reduced production and pushed sugarcane prices to the highest level in 30 years.

Although international sugar prices favor production of sugar for culinary use rather than ethanol production, about 55% of the crop will be used to manufacture ethanol, as it has in the past two years. Brazil has created new restrictions on fuel exports to increase the availability of ethanol in the domestic market.

Brazil's south-central region is responsible for 90% of the country's sugar cane harvest. The region is expected to produce about 35 million tons of sugar this year. Currently, producers in the region are focusing on plantation expansion.

Almost every large company in the region has active projects to expand their mills' crushing capacities. For example, Acucarera Virgolino de Oliveira SA (Sao Paulo) will expand mills in Moncoes and Jose Bonifacio. Cerradinho Acucar e Alcoo (Sao Paulo) is under way with expansion projects at mills in Potirendaba and Catanduva. Cosan (Sao Paulo) is performing studies to expand the company's plant in Rafard.

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