Brazil sugar producers report impact from fires in Sao Paulo state
Brazil's largest sugar group Raizen SA estimated that about 1.8 million tonnes of its sugarcane, including what it sources from suppliers, had been affected by the fires, or about 2% of the total expected for its 2024/25 crop.
It is reported by Reuters.
In a securities filing, Raizen said it did not expect the fires to lead to material losses to its results as it is prioritizing the crushing of the affected sugarcane to mitigate adverse effects.
The burned sugarcane can still be harvested and processed, said Caio Carvalho, a sugar expert with Canaplan consultancy, but added mills will need to rush because the cane starts losing quality after just a couple of days following the burning.
Earlier in the day, Raizen said it had resumed operations at its Santa Elisa mill on Sunday, after fires forced the plant to be evacuated and shut last week.
Sao Paulo said there were no more active fires in sugarcane fields in the state on Monday, but dozens of municipalities were still on high alert for fires.
Another large Brazilian sugar and ethanol producer, Sao Martinho, opens new tab said on Monday in a securities filing that 20,000 hectares of its sugarcane were impacted by the fires.
Sao Martinho maintained its 2024/25 total production guidance, adding it will process the affected cane in coming days but that it expects a reduction in the industrial efficiency in the conversion to sugar.