Reuters – Brazil’s government reduced its projection for this season’s sugar production by nearly 10 per cent in the centre-south (CS) region to 30.7 million tonnes after an evaluation of the impact of drought and frost on crops.
A report by the government’s agricultural statistics agency Conab said the CS sugarcane crop is now seen at 520 million tonnes from 538 million tonnes seen in August. The region’s cane-based ethanol production was projected at 23.1 billion litres versus 23.7 billion litres seen in August.
Besides the losses to sugarcane production due to bad weather, the Brazilian government said the crop continues to lose area to more lucrative crops such as soybeans and corn, which are planted by farmers in rotation.
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Conab said the sugarcane area in Brazil fell 4.1 per cent in 2021/22 to 8.2 million hectares. Sugarcane agricultural yields were seen down 9.5 per cent this season due to drought and frosts, it said.
“Even in a moment when prices are attractive for the sugar industry, sugarcane area is falling,” the agency said in the report.
Brazil’s centre-south 2021/22 corn-based ethanol production was seen at 3.47 billion litres from 3.36 billion litres in August, as plants managed to secure corn supplies despite a tight availability and continued to expand output.
Production of ethanol from corn increased 15 per cent from the previous season, Conab said, adding that the cereal is set to expand its share in the Brazilian energy sector as more plants are coming online and corn production is projected to grow in the next seasons.
