Brazilian Products

12/23/2008

The next sugarcane harvest can pass by difficulties, but the solidity of the bases of the section guarantees that the problems will be outlined", according to the president's of the National Company of Provisioning Forecast (CONAB in portuguese), Wagner Rossi.   
 
He presented on this Monday (15) the result of the production of the sugarcane in 2008, that it will be 13,9% higher to the one of 2007, with 571,4 million tons of processed cane. 
 
It is "a regular market, without great problems, with the government's permanent attendance, that it tries to integrate of the situation of the offer and of the demand", said Rossi. For the president of Conab, the price of the alcohol it was very favorable in 2008 and it should be close to that next year, once the price of the petroleum barrel is in low in the international market. 
  
As for the investments in the sugar and alcohol sectors, Rossi doesn't discard the possibility of problems decurrent of the crisis in the area of world credit, because she ends up affecting all of the sectors. But he believes that they are made adjustments in a soft way, without great problems for the national production. 
 
The director of the Department of Sugarcane and Agro Energy of the Ministry of the Agriculture, Livestock and Provisioning, Alexandre Stratasson, informed that will be installed next year more 30 complex for production of alcohol. The medium cost of each one is around R$ 300 million. 
 
The application of R$ 9 billion in the sector isvery positive, it detached Stratasson. Each one of those plants has capacity for the processing of two tons of cane, guaranteeing the annual industrialization of 560 million supplemental tons. 
 
He foresees that in 2009 the prices of the alcohol will be balanced in relation to the current situation, should have a light increase in the price of the sugar in the international market.  The production of alcohol tends to grow more than the sugar especially for the forecast of increase of the production of vehicles that  use combustible alcohol and gasoline alternatively. Today, they are circulating in the country 7 million of cars moved to alcohol and there is forecast of increase of that fleet in 2009. 
 
Sugar - Still according to Conab, the production of sugar will be of 32,1 million tons, with the grinding of 246 million tons of cane. 
 
The ethanol production will use 325,3 million tons of cane, resulting in the production of 26,6 billion liters, being 10,1 billion liters of the anidre alcohol, that it is added to the gasoline and 16,5 billion moisturized alcohol, the combustible alcohol sold in the gas stations. 
 
When presenting those numbers, the president of Conab, Wagner Rossi, detached that the high that is enrolling in the value of the dollar tends to favor the section exporter of sugar and of alcohol. Besides, in the first months of the year the prices of those derived of the sugarcane tend to increase, in reason of the time between harvests, being stabilized starting from the second bimonthly.
(ABr)

03/23/2010
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U$ 1,00 = R$ 1.970

Euro
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