The amount of sugarcane crushed in the 2015-2016 season in Brazil's Mato Grosso do Sul state rose to a record 48.6 million mt, up 13% compared with the 2014-15 season, according to data released Friday by the Association of Bioenergy Producers of Mato Grosso do Sul (Biosul).
Mato Grosso do Sul is the fourth-largest state in terms of sugarcane production in the key Brazilian Center-South area.
The 2015-2016 season, which ended March 31, saw rain above historical averages during much of the harvest period, Biosul said. As a result, many mills extended their output during the intercrop period, usually from November to March. Almost 10% of total cane crushed was during the intercrop.
Biosul said 20 units operated last season. All of these units produce ethanol, 11 also produce sugar and 12 export their bioelectricity surplus.
Agricultural yields rose 27% from the previous season to 89.3 tons/hectare, but the total recovered sugar (ATR) averaged 126.47 kg/mt of cane, which is below the average, according to Biosul. Sugar production, negatively affected by the rain, was 1.31 million mt, 2.3% lower than the previous harvest.
Of total sugar, roughly 76% was raw VHP (very high polarization) and destined for exports. Crystal sugar accounted for 20% of the total, while refined was 4%.
Total ethanol production grew 15.26% from the previous season to 2.8 billion liters. Of this, anhydrous ethanol totaled 707 million liters and hdyrous came to 2.1 billion liters.
Total cane towards ethanol production was higher than expected at 78%, while the balance was used to produce sugar.
Mills exported the agreed 2.441 GWh of bioelectricity generated by burning sugarcane bagasse, an increase of 29%. Mato Grosso do Sul is one of the leading states in the use of sugarcane biomass for conversion into bioelectricity, Biosul said.
FUEL ETHANOL CONSUMPTION JUMPS
In 2015, hydrous ethanol consumption in the state grew 48.45% year on year to 231.7 million liters, data from the National Petroleum Agency (ANP) showed.
Hydrous ethanol is a standalone biofuel used in flex-fuel vehicles.
Gasoline C consumption decreased by 7.9% year on year to 663.7 million liters, ANP showed. Gasoline C is a blend of gasoline A mixed with 27% anhydrous ethanol.
Anhydrous ethanol demand totaled 177 million liters, down just 1% year on year. The drop in anhydrous demand was small as the government increased the national blend mandate to 27% from 25% previously.
FIRST ESTIMATES FOR 2016-2017 SEASON
The first forecast of the 2016-17 season indicates an availability of 52.1 million mt of cane, up 7.3% from the previous season. It is also expected that the total recoverable sugar will grow 2% to 129 kg/mt of cane this season. Without weather issues this year, such as frost and rains that affected previous harvests, sugar production is expected to recover and reach 1.9 million mt, up 44.83% from the previous season. By comparison, the state produced a record 1.74 million mt in the 2012-13 season.
Despite the sharp growth expected in sugar production, ethanol production is expected to remain essentially stable at 2.82 billion liters. Of this, anhydrous output is expected to grow 13% to 800 million liters, while hydrous output is expected to reach 2.02 billion liters, down 4.3% from 2015-16.
The mills are expected to continue allocating most of their sugarcane for ethanol production, although the share will be less than in previous season. Total cane towards ethanol is expected to reach 70%, down from 78% last season, and 30% will go toward sugar production, up from 22% in the 2015-16 season.
As for bioelectricity cogeneration, the surplus exported is expected to reach 2,685 GWh, up 10% from last season.
"Excessive rainfall gave the keynote for the 2015/16 season, with mills operating during the 12-month period to correct the delay in operations. The rain also disrupted the sugar production and the quality of the raw material," said Biosul's president Roberto Hollanda.
"For the new crop, it is expected to continue the growth of sugarcane, a recovery in sugarcane quality and in sugar output, [if] the weather does not disrupt," he added.
"However, the expected growth should mask a difficult time for the sector. It has been suffering for years from bad public policies by the federal government that led us to a moment of crisis," said Hollanda.
