Bloomberg News

Brazil Center South Cane Output to Fall 1st Time in Decade

June 16, 2011

(Updates with cane output percentage decline in second paragraph, ethanol output in third paragraph.)

June 16 (Bloomberg) -- Brazil’s Center South, the world’s largest sugar-producing region, will have declining cane output for the first time in 10 years on lower yields, said the head of industry researcher Datagro Ltd.

Cane is expected to drop 4 percent to 536 million tons from a year ago, while sugar output declines to 33.7 million tons, down from a May 18 estimate of 34.7 million tons. Brazil’s regional output forecasts were reduced on low yields, President Plinio Nastari told reporters in Sao Paulo today.

Brazil’s Center-South region will produce 23.24 billion liters of ethanol this year, compared with a previous forecast of 24.1 billion liters. It will turn 47 percent of cane into sugar as it’s more profitable to produce sugar than ethanol, he said.

The region produces about 90 percent of the South American country’s sugar and ethanol.

Sugar loading backlogs at Brazil’s six main sugar ports are expected to last an additional 20 to 30 days, Nastari said.

Datagro sees a global sugar surplus of 2.7 million tons for October 2010-September 2011, and an excess of 6.5 million tons in October 2011-September 2012.

--Editors: Robin Saponar, Dale Crofts

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: Robin Saponar at rsaponar@bloomberg.net


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