Brazil ethanol output to increase 15.6% in 2010-2011- Unica

31 March 2010 18:41  [Source: ICIS news]

HOUSTON (ICIS news)--Brazil’s centre-south ethanol output will increase by 15.6% to 27.4bn litres in the 2010-2011 crop year, industry association Unica said on Wednesday, citing higher sugarcane yields and increased production in the next crop.

The 2010-2011 sugarcane harvest begins on 1 April.

Unica estimated that sugarcane production in the centre-south would rise by 10% in the 2010-2011 harvest, but all of the growth will come from sugarcane that was left unharvested from the previous crop.

“Increased sugarcane, sugar and ethanol production should reflect what was not possible in the previous harvest, mainly due to unfavourable weather conditions," the association said.

Centre-south mills, which account for 90% of Brazil’s ethanol production, would crush nearly 596m tonnes of sugarcane in 2010-2011, up from 541m tonnes estimated for the 2009-2010 harvest, Unica said.

The association expected sugarcane yields in 2010-2011 to jump to 138.6 kg/tonne of sugarcane.

That was up by 6.3% from 130.4 kilograms in 2009-2010, but down by 4.4% from a historical average of 145.0 kilograms in Sao Paulo, Brazil’s main ethanol-producing state.

Unica attributed the yield increase from the previous crop to drier weather conditions, while blaming the drop from the 145-kg average on the large volume of sugarcane left on the field from 2009-2010.

Sugarcane yields normally drop the longer sugarcane is left unharvested.

Unica estimated that 12% of the sugarcane to be crushed in 2010-2011 was leftover from the previous crop.

The association also attributed the drop in the average yield for 2010-2011 to increased mechanised harvesting, which brought in slightly less sugarcane compared with manual harvesting.

The early launch of the harvest by several mills that began crushing in March was also a factor, the group said.

Unica is the leading trade association for the sugarcane industry in Brazil, representing nearly two-thirds of all sugarcane production and processing in the country.

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By: William Lemos
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