Survey of sugarcane costs indicates attention to the effects of climate on productivity

The Campo Futuro panels, a project of the Brazilian Confederation of Agriculture and Livestock (CNA), in partnership with Pecege Projetos, supported by the Federation of Agriculture and Livestock of the State of São Paulo (Faesp) and rural unions, concluded at the beginning of August, surveys of sugarcane production costs in the State of São Paulo. The technicians and producers gathered assessed the challenges that affect the growth and profitability of the activity, for the 2024/25 harvest, in the regions of Novo Horizonte, Penápolis and Morro Agudo. 

During the meetings, it was possible to observe a decrease in the average yield of sugarcane fields, due to climate problems, such as water deficit, putting pressure on production costs. Another fact found was the forecast of a lower closing value of ATR (Total Recoverable Sugar) in this harvest, compared to the previous one, also affecting the results.

“The face-to-face survey allows us to have direct contact with producers to collect their demands and concerns about the sugar-energy harvest in São Paulo, but also to support them with information that is strategic for their decision-making regarding cost management, optimization investment and better property management”, stated Nelson Perez, President of the CNA National Sugarcane Commission and Coordinator of the Faesp Sugarcane and Renewable Energy Commission.

Projections and expectations

With lower results projected than in the last cycle, whose harvest was a record and with several favorable factors, the numbers obtained this year, so far, cannot be interpreted as negative, as the comparison level is high. In relation to costs, the prices of inputs at more stable levels are being offset by the increase in the hiring of labor, mechanized services, diesel oil and agricultural machinery.

According to the president of Faesp, Tirso Meirelles, the technical, participatory work that turns into numbers generates an important information system on production and market costs for sugar cane. “Based on this successful partnership between CNA, Faesp and rural unions, which subsidizes our actions, our studies and that of partner institutions to defend proposals and policies for the sugar-energy sector”, he added. 

The complete economic analysis of these panels will be presented in the CNA Campo Futuro 2024 Project Results Circuit, which will take place until the end of the month. Interested parties can register via the official website (cnabrasil.org.br/).