Sugar Mills Should Prioritize Sugar Production This Year

Written by Roberta Souza

Published on 29/01/2021 at 11:59

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The Sugar Mills in the Southeast Region of Brazil That Account for 70% of National Production Should Prioritize Sugar Production Like in 2020

In this year of 2021, the sugar mills will prioritize sugar production and not ethanol. The main producers in Brazil located in the Southeast region, which account for 70% of the national production, have the following factor for prioritizing production: the price of sweetener in the domestic market and the recovery of values in the foreign market.

The Value of the “Mix”:

Unlike the mills that produce corn ethanol, sugarcane mills can determine whether they will produce more sugar or ethanol. Therefore, a broader term mix for one or the other product.

For example: Unica – Monitoring the Current Crop in the Southeast Region pointed out that when the 2020/21 crop was officially harvested in the southeast at the end of March, the sugar blend ratio was 46.22% and the proportion of biofuels was 53.78%, while in the previous cycle, the ratio was 34.48% and the sweetener content was 65.52%.

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Sugar Production for Exports:

According to Cepea – Center for Studies in Applied Economics, the sweetener will be the main product of the Southeast region due to the fact that “a large part of the exports [of sweetener] is already fixed for the next harvest, which compromises flexibility to reverse the mix.”

A professional consultancy estimates that 69% of all the sugar expected to be sold abroad in the 201/22 harvest has been correctly fixed, meaning that the future price is determined to reduce the risk of loss due to price changes.

Signs are again pointing to mix harvests with higher sugar content, but it is not guaranteed that the mills in the Southeast region will produce more.

Sugar Mills Should Prioritize Sugar Production This Year

The Sugar Mills in the Southeast Region of Brazil That Account for 70% of National Production Should Prioritize Sugar Production Like in 2020

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The Value of the “Mix”:

Sugar Production for Exports:

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Sugar Mills Should Prioritize Sugar Production This Year

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