The production mix of the 2021/22 sugarcane crop is expected to focus on sugar production, due to the continuing trend toward high sugar prices, says Bruno Freitas, the senior economist and partner at DATAGRO. Freitas also points out that Brazil’s Center-South and Northeast regions have the potential to reach at once 623 million tons (572mt for the Center-South and 51mt for the Northeast). Sugar production in the Center-South region is estimated at 36.3 million tons, a drop of 5.6%. Whereas, ethanol production is expected to reach 28.4 billion liters, a drop of 6.3%. Freitas calls attention to the production of ethanol from corn, which is projected at 3.4 billion liters, an increase of 32.5%. The director of Usina Alta Mogiana (SP), Luiz Gustavo Junqueira Figueiredo, sees an ongoing demand for both sugar and ethanol this year, but he draws attention to the increase in production costs, and the drought that may possibly damage cane fields.
Sources: Universo Agro / DATAGRO (*Translated by Ia Niani)