According to the Sugarcane Industries Union (Unica), the drop in ethanol consumption in the country due to the pandemic has resulted in a growth trend in sugar production in Brazil. In the region of Ribeirão Preto (SP), for example, the sugarcane harvest of a group that has three plants should be six million tons by the end of the 2020/2021 harvest, 10% more than the last.
"The price of a barrel of oil because of the pandemic fell and ethanol consumption fell 40%. We had to turn all our production to sugar because the international market was at a good price of sugar. But as Brazil has become very much production, the price of the international dollar market has fallen. As the dollar here rose, it compensated for this price loss in the international market", said director Antônio Toniello Filho.
According to data from Unica, in the second half of April, production units in the Central-South region milled 37.9 million tons of sugarcane, compared to 31.7 million tons in the same period last year. Also according to the balance sheet, 45.7% were destined for sugar production, against 30.8% in 2019.