Weaker productivity saw total sugarcane output fall for Raizen, one of Brazil’s largest ethanol producers with a capacity of approximately 2.1bn litres/yr, the firm said in their Q1 2017 report, the last report of the 2016/17 harvest season (Apr-Mar).
Raizen’s total sugarcane crushing ended the 2016/17 harvest season at 59.4mn t, 5% lower than year ago levels. The amount of sugarcane going to ethanol production was 43%, 2% lower than year ago levels with sugar production remaining the more profitable option through most of the season.
This saw Raizen’s ethanol sales fall 21.5% YoY in Q1 2017 to 524,000m3. The dip in sales was somewhat offset by better prices due to a stronger Real, with the currency floating around $0.327, the highest valuation since July 2015.
Sugar sales were also down 28% YoY in Q1 2017. The firm forecast a “more balanced global supply and demand equation” in the sugar market following the meltdown in sugar prices since the beginning of February this year.