Bunge Açúcar & Bioenergia, the Brazilian sugar unit of commodities trader Bunge Ltd, posted in May and June some of its best results yet for cane crushing volumes, the company said on Thursday.
It is reported by Reuters.
Bunge said its eight mills operating in Brazil crushed 2,65 million tonnes of cane in May, the largest amount of cane processing reported by the Brazilian sugar unit since the food processor started operations in Brazil in 2007.
The company said operations continued strong in June, when it reached peaks for average daily crushing over a 30-day period.
Rogério Bremm, the unit’s agriculture director, said the numbers are a result of work done by the company to increase agricultural yields, aimed at turning the operation profitable in any market condition.
Brazil’s center-south, in general, is harvesting a better crop this year compared to the previous season. Agricultural yields were around 5% higher in May compared to the previous season, but they fell 2% in the first two weeks of June, according to cane industry group Unica.
Bunge said the high crushing numbers are also a result of improvements in its industrial capacity.
The U.S.-based company tried to sell its sugar operation in Brazil in the past, with no success.
It then tried to do an initial public offering (IPO) of shares of the unit in Sao Paulo last year, but later canceled the plan citing adverse market conditions.
Since then, market conditions improved in the ethanol side in Brazil, with strong demand and better prices. The sugar side, however, remains sluggish globally.