Brazil: Sugarcane pricing becomes a matter of urgency

Published Sep 15, 2023

Tridge summary

The Organization of Brazilian Sugarcane Producers Associations (ORPLANA) is advocating for higher sugarcane prices from the Council of Sugarcane, Sugar and Ethanol Producers of the State of São Paulo (Consecana), as the current price of $26 per ton is below production costs and global standards. Comparatively, the United States pays the highest price to sugarcane producers at $41.30 per ton. ORPLANA's CEO, José Guilherme Nogueira, argues that the current pricing model is causing a deficit for sugarcane producers and that other crops like soybeans and peanuts are more profitable. A recent study conducted in collaboration with global sugarcane production associations highlights the need for a 25% to 30% increase in sugarcane prices in Brazil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Organization of Brazilian Sugarcane Producers Associations (ORPLANA) has been fighting for a long time for a fair review of the prices of products sold by sugarcane producers. The main demand is better sugarcane pricing by the Council of Sugarcane, Sugar and Ethanol Producers of the State of São Paulo (Consecana), since the current value of US$26 per ton is below production costs and is below global standards. In the world, the United States is the country that best pays sugarcane producers, paying US$41.30 per ton; Turkey appears in second place with a value of US$41.10. Brazil, on the other hand, has different prices depending on the State, with Consecana in Pernambuco paying the best price - US$ 38.34 - per ton of sugarcane, with the effects of sugar. “It is crucial that the methodology is reviewed. Other crops such as soybeans, peanuts and corn are having better yields. While sugarcane, in the Consecana model, has resulted in a deficit for the producer, soybeans and ...

Source: Agrolink