BrasilAgro announces lease that adds more than 7 thousand hectares to the portfolio

BrasilAgro announced a lease that will add just over 7 thousand hectares to the portfolio to produce sugar cane, in a move to diversify revenue. The farm, located in Brotas, in the interior of São Paulo, will allow the company to enter the sugar production market.  

The negotiation represents an increase of 5% in the planted area, projected at 172.459 for the 2023/24 harvest. The announcement also marks the company's entry into the State of São Paulo, one of the main sugar-energy hubs in the country. 

"The international sugar market has proven attractive, in addition to allowing flexibility for the company's results and, since last year, we have dedicated efforts to expanding the portfolio with an eye on this segment", says André Guillaumon, CEO of BrasilAgro. 

According to the company, ownership of the farm will occur in a staggered manner. 5.060 hectares will be leased in 2024, and the remainder by 2029. 

“We are confident that our team’s expertise, combined with the potential of the Brotas region, will result in great success”, celebrates Guillaumon. 

The sugarcane grown in the leased area will be sent to a plant in the region that produces sugar and ethanol, which optimizes the logistical process and also impacts cost reduction.  

“With this operation in São Paulo, we will be remunerated for a mix of ethanol and sugar, which will give us more security and predictability. Sugar is a global commodity, less volatile than ethanol. We will have the opportunity to hedge sugar or the ATR price, which protects us against market fluctuations”, says Guillaumon. 

Currently, BrasilAgro produces food fibers and bioenergy in five Brazilian states, in addition to Paraguay and Bolivia. Almost 21 thousand hectares of the company's portfolio are dedicated to sugarcane cultivation. 

Last year, the company harvested 2 million tons, with an average productivity of 79,07 tons per hectare (tch).