Brazil: Plant in the center south reduces by approximately 40% the production cost of sugarcane fields with drip irrigation

However, like any agricultural crop, it is influenced by some variables in the internal and external market, such as the devaluation of the real against the dollar, supply and demand and the external supply of inputs. In the 2021/2022 harvest, the sugarcane sector was experiencing a wave of great euphoria, where product prices (sugar and ethanol) were on the rise and production costs were relatively low, leading the sector to a major financial recovery and providing an investment phase. But the 2022/2023 harvest has been demonstrating a completely opposite scenario, since, even though product prices are still satisfactory, production costs have risen dramatically due to the rise in the dollar and the war between Ukraine and Russia. Which led to a postponement of investments. In addition to the lesson learned from the great drought of 2021 and taking advantage of the positive wave of investments, many Mills/Suppliers invested in drip irrigation technology to verticalize their ...