Argentina's industry is looking to Brazil for efficiency to diversify production at the sugarcane plant and boost the local economy.
A industry A sugar mill in Argentina is looking to Brazil for inspiration to become one of the country’s leading economies. The focus is on diversifying production in the energy sector, especially in sugarcane. The mill was recently expecting the announcement of a new variety of transgenic sugarcane, which has been in development for about ten years. This new variety of sugarcane can be grown in regions that face scarce rainfall.
Expansion and opportunities for the sugarcane industry
The president of Los Balcanes Sugar Company, Jorge Rocchia Ferro, highlighted that the new sugarcane variety is resistant to glyphosate and drought.
He also mentioned that agreements were signed with Brazil to develop a sugarcane that can withstand frost and the Diatraea pest.
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Ferro believes that the implementation of this technology could significantly increase agricultural area, predicting an investment of around US$2 billion in Tucumán, where the plant is located.
The industry sugarcane in Argentina also involves expanding the diversification of uses for sugarcane, reducing dependence on food consumption.
This dependence could put pressure on sugar prices. One focus of this strategy is to increase the production of bioethanol, a biofuel that is mixed with gasoline.
Although bioethanol has been present in the Argentine market for many years, the last decade has been marked by instability due to frequent changes in regulations affecting the industry.
Sugarcane producers face challenges with prices that do not cover minimum production costs.
Currently, sugarcane producers receive around 657 pesos per liter, a value below what is necessary, which should be above 900 pesos.
The sugarcane sector is calling for a price increase to at least 720 pesos per liter. This figure is considered feasible with the Biofuels Bill currently under discussion in Congress.
New rules and expectations for the sector
The proposed new legislation would reduce the influence of the Energy Secretariat in setting prices, allowing these prices to be determined through bidding processes between participants in the sugarcane production chain.
Furthermore, the law would progressively increase the percentage of bioethanol blending and open space for the entry of new companies, such as oil companies.
Tucumán Governor Osvaldo Jaldo expressed the need for clear rules that promote fair and balanced competition in the industry.
A industry Argentine sugar company, in addition to focusing on sugar production for the domestic market and export, also invests in the use of sugarcane waste to generate renewable energy.
Recently, the fourth electricity cogeneration project using sugarcane bagasse was inaugurated.
After extracting the juice, the dry fiber is processed and used to generate steam that drives turbogenerators, resulting in around 20 MW of electrical energy.
This generated energy is enough to supply the industrial plant, and the surplus is injected into the national interconnected system.