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Agriculture Americas Earnings Energy Ethanol

Raizen reports weaker sugarcane crushing amid high rainfall

Raizen

Raizen, one of Brazil’s largest ethanol producer, crushed 19.2mn t of sugar cane in its Q1 2017/18 (Apr-June), down 14% YoY, the firm reported in its latest earnings report. 57% of the company’s sugarcane crushed went towards sugar production, up 2% YoY, while only 43% was dedicated to ethanol production.

The company, which is a joint venture between Shell and Cosan, stated that the drop in output was due to the 2017/18 harvest starting later than usual in mid-April as opposed to March. Additionally, the first few months of the harvest were also affected by heavy rainfall, which contributed to a slower Q1 than last year.

Revenue from ethanol during the quarter was up 28% YoY due to a 26% increase in volumes sold and 2% rise in average ethanol prices during the quarter. 70% of the ethanol revenue came from the domestic market, with roughly 30% coming from exports.

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