The sugar-energy sector advances with agricultural technology, but agricultural productivity still raises concerns.

Written by Sara Aquino

Published on 03/04/2026 at 10:43

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Even with agricultural technology, the sugar-energy sector faces challenges in agricultural productivity and seeks more industrial efficiency.

Even with strong investments in agricultural technology, the sugar-energy sector in Brazil still faces difficulties in increasing agricultural productivity, especially in light of climate variations.

This finding is the result of recent analyses conducted by consulting firms and auditing companies, based on data from mills evaluated in recent years.

The survey shows that, although there have been advances in industrial efficiency, external factors continue to impact the performance of crops and operations.

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Indicators reveal bottlenecks in agricultural productivity of the sugar-energy sector

Benri’s analysis organized the mills into 12 categories, ranging from AAA (highest efficiency) to D (lowest performance). From this classification, the average rating of B was used to evaluate ten essential indicators in the field.

Among the main points analyzed are factors directly linked to agricultural productivity, such as failures in mechanized planting, harvester yields, and the average age of the sugarcane fields.

Additionally, aspects such as diesel consumption, pest infestation, and utilization of industrial waste were also considered.

These indicators show that, despite the advancement of agricultural technology, there are still operational and environmental limitations.

The climate, for example, remains one of the main obstacles to consistent productivity gains.

Past crisis shaped a new scenario of industrial efficiency

To understand the current moment of the sugar-energy sector, it is necessary to go back to the 2000s. During this period, about 24% of Brazilian mills faced bankruptcy or judicial recovery, according to data from RPA Consulting.

According to Ricardo Soares de Arruda Pinto, director of the consulting firm, the scenario was the result of a combination of economic and strategic factors.

“Obviously, we cannot disregard the management problems in the affected mills, especially risk management,” he states.

Furthermore, the global financial crisis of 2008, combined with rising debt levels and fuel price control policies, directly affected the competitiveness of Brazilian ethanol.

Agricultural technology boosts industrial efficiency in the sugar-energy sector

Despite the difficulties of the past, the current scenario is more positive. According to Haroldo Torres, manager of Pecege, there has been a structural transformation in the sector.

“Although the sector faced significant challenges in the 2010s, recovery and technological advancements have led to an environment of greater efficiency and sustainability,” he explains.

In this context, the adoption of agricultural technology and improvements in management have contributed to increasing the industrial efficiency of the mills. More modern processes, mechanization, and data usage have made operations more precise and competitive.

Sugar-energy sector strengthens with market and public policies

Another determining factor for the growth of the sugar-energy sector is the more favorable economic environment. Global demand for sugar and Brazilian ethanol remains strong, boosting exports and production.

Additionally, public policies such as RenovaBio have encouraged the use of biofuels. This strengthens the role of ethanol in the energy matrix and ensures greater predictability for the sector.

Torres also highlights the consolidation movement. According to him, mergers and acquisitions have allowed more efficient mills to absorb weakened operations, making the sector more robust.

Brazil leads global production with support from agricultural technology

Currently, Brazil occupies a prominent position in the global scenario. The country is the largest producer of sugar in the world and the second-largest producer of ethanol, trailing only the United States.

The production of Brazilian ethanol is expected to reach 37.35 billion liters in the upcoming harvests, according to market estimates. Meanwhile, sugar continues to have a dominant share, representing about 25% of global production.

This performance is directly linked to the advancement of agricultural technology and the continuous improvement of industrial efficiency.

Innovation and sustainability expand competitiveness of the sugar-energy sector

Companies in the sector also reinforce the role of innovation. In an interview with Notícias Agrícolas, Tereos highlighted the importance of productive modernization.

“We believe that the modernization of production processes, from planting to production, elevates operational efficiency, competitiveness, and sustainability of the mills,” the company stated.

Moreover, sustainable practices are gaining ground. The use of biomass, reduction of emissions, and recycling of waste contribute to a cleaner and more efficient model.

“Practices such as the use of biomass for energy generation, the reduction of carbon emissions, and the recycling of agricultural waste transform the production model into a cleaner and more sustainable cycle,” it emphasized.

Agricultural productivity is still the central challenge of the sugar-energy sector

Despite the advancements, agricultural productivity remains the main challenge for the sugar-energy sector. The impact of climatic conditions and limitations in the field continue to require attention.

On the other hand, the advancement of agricultural technology and the evolution of industrial efficiency indicate a promising path. The trend is for the sector to continue growing, with greater resilience and global competitiveness.

See more at: Even with technological advances, mills have difficulty increasing productivity and Advances in technology and management improve the efficiency of mills… – Notícias Agrícolas

The sugar-energy sector advances with agricultural technology, but agricultural productivity still raises concerns.

Even with agricultural technology, the sugar-energy sector faces challenges in agricultural productivity and seeks more industrial efficiency.

Indicators reveal bottlenecks in agricultural productivity of the sugar-energy sector

Past crisis shaped a new scenario of industrial efficiency

Agricultural technology boosts industrial efficiency in the sugar-energy sector

Sugar-energy sector strengthens with market and public policies

Brazil leads global production with support from agricultural technology

Innovation and sustainability expand competitiveness of the sugar-energy sector

Agricultural productivity is still the central challenge of the sugar-energy sector

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The sugar-energy sector advances with agricultural technology, but agricultural productivity still raises concerns.

Even with agricultural technology, the sugar-energy sector faces challenges in agricultural productivity and seeks more industrial efficiency.

Indicators reveal bottlenecks in agricultural productivity of the sugar-energy sector

Past crisis shaped a new scenario of industrial efficiency

Agricultural technology boosts industrial efficiency in the sugar-energy sector

Sugar-energy sector strengthens with market and public policies

Brazil leads global production with support from agricultural technology

Innovation and sustainability expand competitiveness of the sugar-energy sector

Agricultural productivity is still the central challenge of the sugar-energy sector

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