The managing partner of the MBAgro consultancy, José Carlos Hausknecht, said that Brazil’s sugarcane production is likely to recover this year, despite downward trends. “The sugar-alcohol sector was affected by the drought, but only to some extent, for sugarcane production is more concentrated in São Paulo where weather conditions were better than last year. This year, we have a recovery in production”, said Hausknecht during a live broadcast by Broadcast Agro on Thursday, 3. He recalled that sugarcane production in Brazil dropped significantly last year due to drought and frost. “Since the crop is still under the effects of the drought, the production will not return to normal levels yet. So there will be restriction. Although better than last year, sugarcane production will be lower than normal,” he said. He also pointed out that prices are still at good levels because Brazil is producing below its potential and because oil prices have soared. “With higher ethanol prices, sugar production and exports tend to decline,” he said.
Sources: Agência Estado/Nova Cana (*Translated by Ia Niani)