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If The Deals Between Raízen And Biosev Are Concluded, Production Will Be 17% Of The Total Sugarcane And Ethanol Plants In The Southeast Region
Raízen, an ethanol producer in Brazil and owner of Ipiranga gas stations, is acquiring one of the leaders in the sugar-energy sector, Biosev. If the deals go through, the new project will have a production capacity of 17% of all sugarcane plants in the Southeast region, home to Brazil’s main producers, which account for 70% of national production.
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Production Of The Two Large Plants:
Raízen is a joint venture between Cosan and Shell that has the largest sugarcane processing capacity in the country, the raw material for producing sugar, ethanol, and electricity. According to the company, Raízen has 26 plants in operation with an installed capacity of 73 million tons.
Biosev, from the French company Louis Dreyfus Group, controls 8 production units and has the capacity to process 31.6 million tons of sugarcane.
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Their large companies in the sugar-energy sector can collectively process 105 million tons. This number means nothing less than 17% of the 598 million tons of sugarcane planted by the plants in the Southeast region of the country.
Plants Should Prioritize Sugar Production This Year
This year, sugarcane plants will prioritize sugar production over ethanol. The main producers in Brazil, located in the Southeast region, which accounts for 70% of national production, have the following factor for prioritizing production: the price of the sweetener in the domestic market and the recovery of values in the foreign market.
Unlike the plants that produce corn ethanol, sugarcane plants can determine whether they will produce more sugar or ethanol. Therefore, a broader mix term for either product.
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