Skip to content Skip to sidebar Skip to footer

Larger sugarcane harvest increases ethanol supply and puts pressure on prices.

Before reaching the pump, ethanol goes through a chain that begins in the field and depends directly on the productivity and costs faced by the rural producer. Recently found for around R$2.99 at some gas stations in Belo Horizonte, the price of the fuel reflects a scenario of greater supply, reflecting the recovery of sugarcane production and the advancement of corn ethanol.

In Minas Gerais, the National Supply Company (Conab) estimates a sugarcane production of 82.5 million tons in the 2026/27 harvest, an increase of 7.01% compared to the previous season. The expected result combines an increase in cultivated area and a recovery in sugarcane productivity.

“Each sugarcane field has its own characteristics. It depends on the location, climate, soil, sunlight, and rainfall patterns. There is no single formula for achieving high productivity,” explains producer Humberto de Campos Maciel, from Pompéu and a member of the Sugarcane Technical Committee of Faemg.

This season, weather conditions contributed to a positive outlook in different producing regions. According to Humberto, rainfall was intense and well-distributed, favoring the development of sugarcane fields. He expects the national harvest to be between 5% and 7.5% larger than the previous one, potentially reaching between 640 million and 650 million tons of sugarcane.

The positive scenario reflected at gas stations, however, coexists with pressured prices and high production costs. The price paid at the pump is not the same as what the producer receives. Between the farm and the consumer are industry, transportation, distribution, taxes, and other agents that make up the chain.

“The remuneration for sugarcane is influenced, among other factors, by the price of sugar on the international market. The drop in prices on the New York Stock Exchange has put pressure on the value of ATR, an indicator used in sugarcane remuneration, while fertilizers and other inputs have become more expensive,” says Humberto.

Production and technology

In this scenario, technology plays an important role in the pursuit of efficiency. The choice of more productive and resistant varieties, proper soil management, more precise fertilizer application, irrigation, and the use of satellite-guided systems are among the strategies adopted by producers.

In satellite-guided contour planting, for example, the technology can also be used in harvesting. The system allows machines to follow the plan defined for the sugarcane field, reducing damage to the roots and promoting more efficient use of the plant.

Irrigation is another resource that can increase productivity and extend the lifespan of sugarcane fields. According to Humberto, the combination of different technologies and management practices already allows, in certain regions, for productivity to double, going from 80 to 160 tons per hectare.

Planning and technical assistance

To achieve greater productivity, however, it is not enough to have access to technology. It is necessary to know where and how to apply it. Nathália Rabelo, agribusiness analyst at the Faemg Senar System, emphasizes that planning must consider the specific characteristics of each property.

“Each sugarcane field requires a specific strategy. Soil analysis, variety selection, nutritional management, and monitoring of pests and diseases need to be aligned with the farm's conditions. Technical assistance helps transform this information into more efficient decisions,” he explains.

This monitoring also contributes to cost control and more precise use of inputs, important factors at a time of tighter margins for the producer.

From the field to the pump

The performance of sugarcane fields has repercussions on the availability of raw materials and, consequently, on the ethanol market. The recovery in sugarcane production is occurring at a time of greater fuel supply, also favored by the growth of ethanol produced from corn.

 

Last week, the market showed signs of recovery. According to a survey by the consulting firm Datagro, the price of hydrated ethanol to producers in São Paulo rose 8.2%, reaching R$ 2.1955 per liter. Anhydrous ethanol advanced 6.6%, to R$ 2.5078.

 

“The price of ethanol is related to the variation between supply and demand. And, behind this fuel, there is a complex production chain and technical work carried out daily by the sugarcane producer,” concludes Nathália.

THE MM Cereais works with the best grains on the market and also keeps you up to date with the latest news and analyses on agribusiness.
Don't forget to follow our social networks.

Access News Source