Sugar production continued to rise in the North and Northeast until the end of December

The sugarcane harvest in the North and Northeast has already reached two-thirds of the processing expected for the 2023-2024 season, which is expected to end in April. By the end of the second half of December last year, crushing registered an increase of 6,9%, with production of 42,62 million tons. Sugar manufacturing, totaling 2,3 million tons, grew 13,6% compared to the figures recorded on the same date in the previous harvest.

Data compiled by the Association of Sugar, Ethanol and Bioenergy Producers (NovaBio) reaffirm the growth trend in sugar production observed in the entity's latest fortnightly reports. According to Renato Cunha, executive president of NovaBio, which brings together 35 ethanol plants and distilleries in 11 Brazilian states, the increase in the production of the product is due to the appreciation of the commodity in the international market, together with the discouragement in the competitiveness of ethanol compared to gasoline in the national internal market.

Cunha, also president of the Sugar and Alcohol Industry Union of the State of Pernambuco (Sindaçucar/PE), adds that the current harvest should be extended beyond the month of March in some plants. The reason is the delay in the 2022-2023 harvest due to weather events, which is causing a delay in the current harvest.

In relation to total ethanol production (anhydrous and hydrated), the volume reached 1,72 billion liters. “Despite a 4% reduction in anhydrous production, which presented a production of 869,9 million liters compared to the 906 million liters recorded in the same period of last crushing, the total production of biofuel increased by 2,6% ”, pondered Cunha. This is because until December 31st, there was a growth of 10,4% for the hydrated product. 852,5 million liters were produced compared to 772,5 million liters compared to the 2022-2023 cycle.

Until the second half of December, the physical stock of anhydrous ethanol plus hydrated ethanol grew 25,09%. It reached 419,19 million liters, storage exceeding the 335,12 million liters in the 2022-2023 harvest. Considering only the stock of anhydrous ethanol, that is, the biofuel intended exclusively for mixing in gasoline, the increase was even greater, 46,14%. “This is the biggest symptom of the current competitiveness policy: it continues to sacrifice sales, and the sales of anhydrous in relation to gasoline are very evident. This would only be resolved if there were stimulus rules for building up stocks of clean and green fuels”, he warned.