Sugar production in Brazil's south-central region is expected to fall in 2024/25, says BP Bunge CEO.
BP Bunge Bioenergia CEO Geovane Consul projected that sugarcane production in Brazil's Center-South region is expected to decline 9,6%, to 598 million tons, in the 2024/25 season.
Reuters - Sugar production in Brazil's center-south region, the main producing area, is expected to fall 4,4% to 40,8 million tons in the 2024/25 season, said BP Bunge Bioenergia CEO Geovane Consul on Tuesday at a sugar conference in Dubai.
"We're not having good weather," he said, adding that average rainfall was lower this year compared to the "near-perfect" weather of last season, particularly in the northern part of the country.
Consul projected that sugarcane production in Brazil's south-central region would fall by 9,6%, to 598 million tons, but the impact would be partially offset by an increase in the proportion of sugarcane destined for sugar production instead of ethanol.
He estimated a sugar "mix" of 51,4% in 2024/25, up from 48,8% in the previous season.
"We are considering a reduction in sugarcane availability this year. We are slightly increasing the sugar mix," he said, noting that there has been significant investment in sugar processing capacity.
He noted, however, that the cost of building capacity in Brazil had skyrocketed, so the returns were not great.
A Reuters poll of analysts and traders released last month presented a median forecast for sugarcane production of 620 million tons, although drier-than-normal weather has led to some downward revisions of forecasts recently.
The research estimated sugar production at 42,1 million tons.