Brazil's sugarcane output is expected to fall this season as processors cut investments for renovating fields, the chief executive of privately owned energy company Raozen Energia SA, Luis Henrique Guimaroes, said on Monday. The company forecasts crushing between 63 million and 67 million tonnes of sugarcane in the 2018-2019 season, which starts officially on April 1, he said.
"We believe the crop in Brazil as a whole will be smaller due to the low level of investment in planting and improvements of the fields," he said, addressing analysts and investors at an event hosted by the company. His remarks contrasted with the results of a recent Reuters poll, which estimated Brazil's center-south, the world's largest sugarcane producer, will crush 588.64 million tonnes of cane in 2018-2019 season, slightly higher than the 585 million tonnes from the previous crop.
The CEO also mentioned the "excellent" prospects for ethanol production in Brazil, saying demand is strong for the biofuel after the government rose taxes on gasoline in the second half of last year.
Comments
Comments are closed for this article.