Sugarcane production in Brazil: an overview of the ... · Datum Seite 1 Sugarcane production in...

DatumSeite 1 Sugarcane production in Brazil

Balieiro, 2015

Sugarcane production in Brazil: an overview of the production system and costsSamuel Balieiro, M.Sc.Thünen Institute of Farm Economics

November 9th 2015Agritechnica, Hannover

Sugarcane production in BrazilBalieiro, 2015

Agenda

1. What is agri benchmark?

2. Sugar and ethanol production in Brazil

3. Sugarcane production system (typical)

4. Sugar raw material costs – Sugarcane vs. Sugar Beet

5. Summary


Who we are and what we do

1. agri benchmark is a global, non-profit network of agricultural economists, advisors, producers and specialists in key sectors of the value chains.

2. We use internationally standardized methods to analyze farms, production systems and their profitability.

3. We combine our farm-level knowledge with our expertise in international commodity markets and value chains.

4. Thereby we are able to provide scientifically consistent and soundly based answers on strategic issues to decision makers in agribusiness, policy and farming.


Present in all major countries and crops

Crop coverage :CornSoybeansWheatSugar beetRiceRapeseedOatsRye(Malting) barleySunflowerSorghumCottonPeasBeansPalm oilSugar cane

Countries participating in agri benchmark Cash Crop

Countries to come online 2014/15

Priorities for new partnerships


Major clients and research partners


Agenda





5. Summary


Importance of sugarcane in Brazil

Cattle16%

Soybean16%

Sugarcane12%

Poultry11%

Milk8%

Corn7%

Coffee 5%

Others25%

Production Gross Value (%) - 2011

• 3rd most important crop (around USD 20 bn)

• 2nd biggest crop including industrial processing

• About 25% of world sugar and ethanol production

• About 20% of Brazilian primary energy source

source: adapted from Conab (2013)


5

10

15

20

25

30

35

40

Ethanol (Million m³) Sugar (Million t)

Sugar and ethanol production

Sugar and ethanol production in Brazil (1995 – 2015). source: UNICA (2015) own calculations.

38%

47%

9%5%

Brazil Others Thailand France

Sugar exporters (value in 2013) Source: ITC (2014)

• BR is the largest sugar exporter

• Ethanol – domestic consumption (90%)


Sugarcane production evolution

Sugarcane production in selected regions in Brazil (1980 – 2015). source: UNICA (2015) own calculations.

0

100

200

300

400

500

600

700

Mill

ion

t

South-Center Northeast Brazil


Agenda





5. Summary


Sugarcane production systems

Land

Preparation

Planting

Cultivation after planting

Ratoon management

Harvesting and Transportation

5 to 8 years


Production systems – Land preparationLAND

PREPARATION

PLANTING

CULTIVATION AFTER

PLANTINGRATOON

CULTIVATION

HARVESTING AND TRANSPORTATION

Spraying

Lime application

Subsoiling

Harrowing


Production systems - Planting

LAND

PREPARATION

PLANTING

CULTIVATION AFTER

PLANTINGRATOON

CULTIVATION


Mechanized planting

Mix of manual and mechanized planting

Fertilizer application Transplanting Covering


Production systems – Cultivation after PlantingLAND

PREPARATION

PLANTING

CULTIVATION AFTER

PLANTINGRATOON

CULTIVATION


Herbicide and Insecticide application

Filter cake application Vinasse application

Sugar mills


Production systems – Ratoon managementLAND

PREPARATION

PLANTING

CULTIVATION AFTER

PLANTINGRATOON

CULTIVATION


Herbicide and insecticide application

Fertilizer application Cultivation


Production systems – Harvesting and TransportationLAND

PREPARATION

PLANTING

CULTIVATION AFTER

PLANTINGRATOON

CULTIVATION


Manual harvesting Mechanized harvesting

Loading

Transportation


Agenda





5. Summary


Yields in t of sugar / ha – sugarcane (Preliminary)

• BR farms with significant higher sugar yields per ha • TH farm suffered considerable with droughts

At least 30%


Agenda





5. Summary


Summary

I. agri benchmark provides a suitable platform to analyze sugar production costs worldwide.

II. The major sugar exporting countries are already represented in our database – aiming to include others like India, Columbia, etc.

III. Brazilian sugarcane industry is facing financial and environmental problems – increase the importance of ethanol domestically

I. Inefficient factories leaving the market (80 units since 2008)

IV. Looking at the raw material production, sugar beet seems to be more competitive. What about industrial costs? Next steps in our network.


Knowledge is our Business

Samuel Balieiro, M.Sc.- Member of agri benchmark Cash Crop team -

Thünen Institute of Farm EconomicsBundesallee 50, 38116 BraunschweigGermany

phone +49 - 531-596-5178mobile +49 - 0152-2311-1071e-mail [email protected] www.agribenchmark.org

www.ti.bund.de

Thank you for your interest in agri benchmark.

Knowledge is our business

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