Post on 01-Jul-2018
DatumSeite 1 Sugarcane production in Brazil
Balieiro, 2015
Sugarcane production in Brazil: an overview of the production system and costsSamuel Balieiro, M.Sc.Thünen Institute of Farm Economics
November 9th 2015Agritechnica, Hannover
Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Who we are and what we do
1. agri benchmark is a global, non-profit network of agricultural economists, advisors, producers and specialists in key sectors of the value chains.
2. We use internationally standardized methods to analyze farms, production systems and their profitability.
3. We combine our farm-level knowledge with our expertise in international commodity markets and value chains.
4. Thereby we are able to provide scientifically consistent and soundly based answers on strategic issues to decision makers in agribusiness, policy and farming.
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Sugarcane production in BrazilBalieiro, 2015
Present in all major countries and crops
Crop coverage :CornSoybeansWheatSugar beetRiceRapeseedOatsRye(Malting) barleySunflowerSorghumCottonPeasBeansPalm oilSugar cane
Countries participating in agri benchmark Cash Crop
Countries to come online 2014/15
Priorities for new partnerships
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Sugarcane production in BrazilBalieiro, 2015
Major clients and research partners
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Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Importance of sugarcane in Brazil
Cattle16%
Soybean16%
Sugarcane12%
Poultry11%
Milk8%
Corn7%
Coffee 5%
Others25%
Production Gross Value (%) - 2011
• 3rd most important crop (around USD 20 bn)
• 2nd biggest crop including industrial processing
• About 25% of world sugar and ethanol production
• About 20% of Brazilian primary energy source
source: adapted from Conab (2013)
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Sugarcane production in BrazilBalieiro, 2015
5
10
15
20
25
30
35
40
Ethanol (Million m³) Sugar (Million t)
Sugar and ethanol production
Sugar and ethanol production in Brazil (1995 – 2015). source: UNICA (2015) own calculations.
38%
47%
9%5%
Brazil Others Thailand France
Sugar exporters (value in 2013) Source: ITC (2014)
• BR is the largest sugar exporter
• Ethanol – domestic consumption (90%)
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Sugarcane production in BrazilBalieiro, 2015
Sugarcane production evolution
Sugarcane production in selected regions in Brazil (1980 – 2015). source: UNICA (2015) own calculations.
0
100
200
300
400
500
600
700
Mill
ion
t
South-Center Northeast Brazil
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Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Sugarcane production systems
Land
Preparation
Planting
Cultivation after planting
Ratoon management
Harvesting and Transportation
5 to 8 years
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Sugarcane production in BrazilBalieiro, 2015
Production systems – Land preparationLAND
PREPARATION
PLANTING
CULTIVATION AFTER
PLANTINGRATOON
CULTIVATION
HARVESTING AND TRANSPORTATION
Spraying
Lime application
Subsoiling
Harrowing
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Sugarcane production in BrazilBalieiro, 2015
Production systems - Planting
LAND
PREPARATION
PLANTING
CULTIVATION AFTER
PLANTINGRATOON
CULTIVATION
HARVESTING AND TRANSPORTATION
Mechanized planting
Mix of manual and mechanized planting
Fertilizer application Transplanting CoveringPage 14
Sugarcane production in BrazilBalieiro, 2015
Production systems – Cultivation after PlantingLAND
PREPARATION
PLANTING
CULTIVATION AFTER
PLANTINGRATOON
CULTIVATION
HARVESTING AND TRANSPORTATION
Herbicide and Insecticide application
Filter cake application Vinasse application
Sugar mills
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Sugarcane production in BrazilBalieiro, 2015
Production systems – Ratoon managementLAND
PREPARATION
PLANTING
CULTIVATION AFTER
PLANTINGRATOON
CULTIVATION
HARVESTING AND TRANSPORTATION
Herbicide and insecticide application
Fertilizer application Cultivation
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Sugarcane production in BrazilBalieiro, 2015
Production systems – Harvesting and TransportationLAND
PREPARATION
PLANTING
CULTIVATION AFTER
PLANTINGRATOON
CULTIVATION
HARVESTING AND TRANSPORTATION
Manual harvesting Mechanized harvesting
Loading
Transportation
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Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Yields in t of sugar / ha – sugarcane (Preliminary)
• BR farms with significant higher sugar yields per ha • TH farm suffered considerable with droughts
At least 30%
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Sugarcane production in BrazilBalieiro, 2015
Agenda
1. What is agri benchmark?
2. Sugar and ethanol production in Brazil
3. Sugarcane production system (typical)
4. Sugar raw material costs – Sugarcane vs. Sugar Beet
5. Summary
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Sugarcane production in BrazilBalieiro, 2015
Summary
I. agri benchmark provides a suitable platform to analyze sugar production costs worldwide.
II. The major sugar exporting countries are already represented in our database – aiming to include others like India, Columbia, etc.
III. Brazilian sugarcane industry is facing financial and environmental problems – increase the importance of ethanol domestically
I. Inefficient factories leaving the market (80 units since 2008)
IV. Looking at the raw material production, sugar beet seems to be more competitive. What about industrial costs? Next steps in our network.
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Sugarcane production in BrazilBalieiro, 2015
Knowledge is our Business
Samuel Balieiro, M.Sc.- Member of agri benchmark Cash Crop team -
Thünen Institute of Farm EconomicsBundesallee 50, 38116 BraunschweigGermany
phone +49 - 531-596-5178mobile +49 - 0152-2311-1071e-mail samuel.balieiro@ti.bund.deinternet www.agribenchmark.org
www.ti.bund.de
Thank you for your interest in agri benchmark.
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Knowledge is our business