Water scarcity causes a drop in the sugarcane crop and harms planting

Until August 1, 2021, the crushing of sugarcane presented a decrease of 7.31% when compared to the same period of the last agricultural cycle (20/21) crop. The impact on sugarcane yields was even greater, according to the CTC (Canavieira Technology Center) – they registered productivity of 86.5 tons per harvested hectare, compared to 75.7 tons, adding to an accumulated decrease of 17.9%.

The 2021/22 sugarcane crop should be 15% smaller than the previous crop, as estimated by the Organization of Cane Producers Associations of Brazil, with a production of approximately 530 million tons in the Center-South region of Brazil, after a long period of drought.

The continuity of dry weather over the Center-South, together with the occurrence of frosts in producing areas of São Paulo, Mato Grosso do Sul and Paraná, raised concerns about the real size of the crop failure in 2021/22.

According to the Sugarcane Industry Association (UNICA), the first half of July/21 registered the processing of 45.6 million tons of cane, 2.4% less than the volume obtained in the crushing of the sugarcane. same period last season. The few rains required changes in the harvest schedule in some regions, impacting crop yields.

For Leonnardo Lopes Ferreira, Operations Director at Yes, the absence of rain contributes to less optimistic projections regarding the duration of the current crop and, in the medium term, for the 2022/2023 crop.

“In 2021, we observed the lowest rainfall averages in the last 30 years. The water deficit hindered the growth of sugarcane, reducing the total amount of production in tons. This fact consequently reduces the crushing period and promotes the premature closure of the harvest”, points out Ferreira.

For Leonnardo, planning is needed to face this moment. As a way to mitigate this drop in sugarcane production, Ferreira believes that producers and mills should invest in sugarcane productivity through technologies that can increase crop productivity.

“The smaller sugarcane harvest in Brazil should impact the production of yeast derivatives used for animal nutrition. The shorter the harvest period, the greater the need to stock the product in order to maintain supply”, he points out.

Still, for the executive, the crop failure should be offset by higher marketing prices. “These same higher sugar and ethanol prices should help maintain mills' margins even in the face of a relevant increase in unit costs arising from more expensive inputs, a smaller volume of crushing and production. We are aware of the challenges of production and of the plants, and we know that they are enormous in Brazil, in addition to the international factors that daily modify negotiations. The current situation has made the scenario even more worrying. The risk of a drastic reduction in production is great, driven mainly by the drought”, concludes Ferreira.

About Yes

Yes, a biotechnology company in animal nutrition, develops and produces nutritional additives such as mycotoxin adsorbents, prebiotics, organic minerals, blends and yeast derivatives with the objective of improving the performance and health of animals. All products comply with the strictest laws in world markets such as the United States and Europe. Founded in 2008, Yes has a head office in Campinas/SP, four production plants, one in Lucélia/SP, one in Novo Horizonte/SP, one in Borá/SP and one in Narandiba/SP, a Logistics Center and Distribution in Lucélia/SP, another in Cascavel/PR in addition to the opening, in 2020, of a new CD located in Mexico. It operates throughout Brazil, in addition to exporting to over 40 countries, being present in Latin America, Europe, Africa, Oceania and Asia. Since 2016, the company has been part of the investee portfolio of the Aqua Capital investment fund. More information: www.yessinergy.com