The amount of sugarcane crushed in the 2017-2018 season in Brazil's Mato Grosso do Sul state is expected to reach 51.4 million mt, up 2.2% compared with the previous season, said the association of Bioenergy Producers of Mato Grosso do Sul (Biosul) Wednesday.
Mato Grosso do Sul is the fourth-largest state in terms of sugarcane production and fifth in terms of sugar in the key Brazilian Center-South area.
The 2017-2018 season started officially on April 1 in Center-South, the largest sugarcane and sugar producer in the world.
Biosul said that with economic recession in the country, there were no relevant investments in area expansion, but only the necessary treatment on the fields.
The state usually diverts more cane to produce ethanol rather than sugar. This characteristic will remain in the 2017-18 season, although the percentage of cane to produce sugar will rise to 31% from 28% the previous season.
Biosul said the cane was hit in previous seasons by excessive rain and frost, although sugar output increased last season to levels seen in 2012-13 and is expected to grow again this season by 14% to 1.99 million mt.
Total ethanol production (hydrous and anhydrous) is expected to rise almost 1% on the year to 2.74 billion liters. Hydrous ethanol output, which is most used in flex-fuel vehicles, is expected to fall 1.4% to 1.89 billion liters. Anhydrous production by contrast, which is blended into gasoline at a 27% rate according to a national mandate, is expected to grow 6.5% to 847 million liters.
Both products are also used in industry in a smaller proportion.
Biosul said 20 mills will be operational in the 2017-18 season to produce sugar, ethanol and bioelectricity. Of this, five will produce only ethanol.
2016-17 FINAL FIGURES
The 2016-17 season saw an increase in the amount of cane crushed of 3.3% on the year to 50.2 million mt, Biosul said.
About 10% of the total cane crushed was during the intercrop season, over December through March, according to Biosul.
"To achieve a growth, even though small, in a scenario of crisis is a positive fact," said Roberto Hollanda, president of Biosul.
The cane directed to sugar rose 6 percentage points on the year to 28%. Sugar production grew 31.4% on the year to 1.74 million mt, while ethanol output fell 3.9% on the year to 2.71 billion liters.
Hydrous fell 11.7% on the year to 1.91 billion liters, while anhydrous, by contrast, grew 22% year on year to 795 million liters.
According to Biosul, 20 mills were operational and the harvested area totaled 615,000 hectares.
CENTER-SOUTH 2017-18 ESTIMATES
The 2017-18 sugarcane crush in Center-South region is expected to reach 585 million mt, down 3.7% from the 2016-17 season, industry association UNICA said last week.
Nine states make up the Center-South region, including Sao Paulo, the largest state producer.
Sao Paulo accounted for roughly 60% of the cane crushed last season, or nearly 366 million mt, UNICA data showed.
Of the total cane expected to be crushed this season in Center-South, 46.99% will be directed to produce 35.2 million mt of sugar, UNICA said. That compares with 46.3% of the cane used to produce 35.63 million mt of sugar in 2016-17.
The balance of the sugarcane, or 53.01%, is expected to be used to produce 24.4 billion liters of ethanol, compared with 25.4 billion produced last season.
UNICA said the fall in total cane crush is mainly due to a small retraction in total acreage available and a fall in the agricultural yields expected for this season.
Total acreage is expected to fall 1.5% in the 2017-18 season due to stagnation in the cultivated area and higher fields renovation with 18 months' cane.