Brazilian Sugarcane Processing Plants Reactivated Despite COVID-19, an Industrial Info Market Brief

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While many sugar and ethanol producers in Brazil have suffered the consequences of the COVID-19 pandemic, several sugarcane processing plants in the country have been reactivated for the 2020-2021 harvest season.

Companhia Mineira de Açúcar e Álcool (CMAA) has invested R$200 million (US$38.38 million) in Usina Canápolis, which occupies the site of the former Usina Triálcool facility. Following the start of this year's harvest season, the plant is projected to crush up to 2 million tons of sugarcane this year.

Similarly, the former Usina Pau D'Alho site, located in Ibirarema in Sao Paulo state, which has been inactive since 2012, has recommenced operations under the new name of Usina Enersugar as a result of R$100 million (US$19.19 million) in investments. Enersugar has a sugarcane crushing design capacity of 2.2 million tons per year, with 95% of the product destined for sugar production, which is in higher demand as a result of the pandemic. Furthermore, the company plans, as part of its investment strategy, to increase the crushing capacity of the plant to 4 million tons by 2024 while also elevating the sugar and ethanol production capacities.

Finally, as of April 2020, following an investment of R$95 million (US$18.23 million), Usina CRV Industrial in Capinópolis has commenced operations for the first time since its owner, Grupo Japungu, acquired the plant in 2017. For the 2020-2021 season, the company plans to crush 1 million tons sugarcane with the aim to reach full design capacity (1.7 million tons) by the 2022-2023 season. The plant currently can produce up to 600 tons of sugar and 600,000 liters of fuel ethanol per day. The company aims to increase its annual crushing capacity to 3 million tons and increase production capacities by 2025.