Apr 05, 2010
Sugarcane Production In Mato Grosso Could Double By 2016
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The state of Mato Grosso is famous for its extensive soybean production and its huge cattle herd, both of which are the largest in Brazil. The state is not necessarily known for its sugarcane production, which has struggled in recent years.
The new sugarcane production year just started in Brazil and according to the Association of Sugar/Ethanol Industries of Mato Grosso (Sindalcool-MT), the sugarcane producers in the state will cultivate approximately 215,000 hectares of sugarcane in 2010-11. The total sugarcane produced in the state will be 14.1 million tons, which is slightly more than last year, but still less than 2.5% of Brazil's total sugarcane production. Even though the total sugarcane production is projected to be slightly more than last year, it would still be 7.7% less than the record production of 2008-09.
There are only 10 sugar/ethanol mills operating in the state compared to the more than 400 operating throughout Brazil. Investments in the sugarcane industries of Mato Grosso have been limited in recent years due to the worldwide economic slowdown and tight credit policies. That may be changing though because of recent announcement that a company called Brazilian Italian Oil will invest R$ 3 billion on the construction of three new sugar/ethanol mills by the year 2016. To supply the new mills, they intend to plant 180,000 hectares of sugarcane, which would nearly double the amount of sugarcane currently grown in the state. All the sugarcane would be grown on former pastureland.