Mill Woes, Ethanol to Limit Brazil’s Sugar Revival

Mill Woes, Ethanol to Limit Brazil’s Sugar Revival

 

Although ethanol output may increase, Brazilian sugar production and exports may not regain record levels achieved two seasons ago for at least another two years according to the International Sugar Organization.  The organization sees stagnation in the Brazilian sugar industry through the 2015/16 season as it is impacted by poor finances in its cane processing sector, mills closing at a rate of five to ten mills per year, and larger milling groups reporting higher debt.  For 2014/15 Brazilian sugar production is expected to decline 500,000 tons to 37 million tons and exports are expected to be 25.5 million tons.  On the up-side, the mill closures are allowing the remaining mills to increase their throughput and dilute their costs.  To read further about how these factors are affecting ethanol production in Brazil:

 

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