Sugar Production Falls by 2% in the 2024/25 Harvest, Says UNICA
In the first half of October, sugarcane producers in the South-Central region of Brazil processed 33.83 million tons of sugarcane. This figure represents a 2.75% increase compared to the same period last year, according to the Sugarcane Industry Association (UNICA).
Cumulative crushing for the 2024/25 harvest reached 538.85 million tons by October 16, up 2.36% from the 526.43 million tons recorded during the same period in the previous harvest.
UNICA reported that 255 mills were operational in early October, with 236 plants processing sugarcane, 9 units producing ethanol from corn, and 10 flex mills. In comparison, 259 units were in operation during the same period of the 2023/24 harvest.
By the end of the first half of October, seven units had completed crushing, and 12 mills had concluded operations since the start of the 2024/25 cycle. In the previous season, only four units had finished operations by this point.
Improved Raw Material Quality
The Total Recoverable Sugars (ATR) reached 160.30 kg per ton of sugarcane in the first half of October, a 6.98% increase over the 149.84 kg per ton recorded during the 2023/24 season. The cumulative ATR for the current season is 142.23 kg per ton, reflecting a 1.03% increase compared to last year’s harvest.
Sugar Production Decreases
Cumulative sugar production in the South-Central region totaled 35.59 million tons as of October 15, a 1.93% decline from the same period last year. In the first half of October alone, 2.44 million tons of sugar were produced.
During this period, 47.28% of the sugarcane was directed toward sugar production, down from 48.12% in the previous year.
Ethanol Production and Sales
Ethanol production in the South-Central region reached 2.01 billion liters in the first half of October, with:
- 1.29 billion liters of hydrated ethanol (+21.95%)
- 722.07 million liters of anhydrous ethanol (+3.56%)
Since the start of the harvest until October 16, total ethanol production amounted to 27.21 billion liters, an increase of 7.93%. This includes:
- 17.39 billion liters of hydrated ethanol (+16.81%)
- 9.81 billion liters of anhydrous ethanol (-4.88%)
Corn-based ethanol accounted for 16.31% of ethanol production during the first half of October, with 327.43 million liters produced—an increase of 31.08%. Cumulative corn ethanol production has reached 4.13 billion liters, a growth of 27.35% compared to the same period last year.
Ethanol Sales Surge
Ethanol sales for the first half of October totaled 1.46 billion liters, up 17.20% compared to the same period in the 2023/24 harvest.
- 902.74 million liters of hydrated ethanol were sold domestically, a 14.10% increase.
- 532.29 million liters of anhydrous ethanol were sold, representing a 28.77% growth.
Since the beginning of the harvest, ethanol sales have reached 19.30 billion liters, reflecting a 16.29% increase. Of this, 12.51 billion liters were hydrated ethanol (+29.08%), while 6.79 billion liters were anhydrous ethanol (-1.66%).
Industry Outlook
Despite expected reductions in sugarcane crushing for the 2024/25 cycle, Luciano Rodrigues, Director of Market Intelligence at UNICA, noted that the ethanol supply for the domestic market is likely to remain stable. This will be supported by:
- Increased corn ethanol production
- A smaller sugar production mix
- Lower biofuel exports
- Higher carry-over inventories at the beginning of the current harvest
“This scenario ensures sufficient supply through the off-season while promoting decarbonization through biofuels in the domestic market,” said Rodrigues in a statement.
