Cooperative relationships are causing profound changes in the behavior of Pernambuco’s sugarcane producers. Farmers have joined forces to reopen industrial plants in the state, bringing hope to a sector that has been facing challenges over the last decades. The sugarcane harvest in Pernambuco is expected to reach more than 13 million tons during this harvest, producing around R$ 2.5 billion for the sector. Altogether, the sugar cane industry can employ around 60 thousand people. Gerson Carneiro Leão was one of the producers in charge for creating the Agrocan cooperative. The first project of the cooperative was to rent the century-old Pumaty industrial plant, which had been closed for 2 years. Currently, a group of 38 cooperative members and 1800 suppliers oversee the plant. They receive tax incentives, with a discount rate of 18.5%. “The cooperative members and the suppliers are the proprietors. The profit is invested with associates. In the previous harvest, they received a bonus of more than R$ 18 per ton of cane. That means almost R$ 12 million for each 200 thousand tons”, said Leão. Currently, Pernambuco has three plants being controlled by cooperatives.
Source: Globo Rural
*Translated by Ia Niani