At a sugar conference in Dubai, BP Bunge Bioenergia’s Chief Executive Officer, Geovane Consul, projected a 4.4% decrease in sugar production in Brazil’s primary Centre-South growing region for the 2024/25 season. Consul attributed this decline to adverse weather conditions, noting lower average precipitation compared to the previous season’s favorable weather, particularly impacting the northern part of the country.
Consul forecasted a more substantial 9.6% reduction in CS Brazil cane production, totaling 598 million tons. However, he highlighted that the impact of this decrease would be partially offset by an increase in the proportion of cane allocated for sugar production rather than biofuel ethanol. Anticipating a sugar mix of 51.4% for the upcoming season, up from 48.8% in the prior year, Consul emphasized adjustments made due to reduced cane availability and increased investment in sugar processing capacity.
While acknowledging the rising costs of building capacity in Brazil, Consul noted that returns on investments were not as lucrative. A recent Reuters poll of analysts and traders had initially forecasted cane production at 620 million tons and sugar production at 42.1 million tons. However, the dry weather conditions have prompted downward revisions to these estimates in recent assessments.
The evolving landscape of Brazil’s sugar production sector reflects a delicate balance between weather challenges, investment dynamics, and market demands. As industry players navigate these uncertainties, the focus on optimizing sugar production amidst changing conditions underscores the resilience and adaptability of Brazil’s sugar industry in the face of external pressures.