In Brazil, Reuters is reporting that Brazil’s Cosan, sugar and ethanol producer’s net income fell a full 83% for the quarter ending December 31. The main contributing factor was the increase cost of sugar due to crops being smaller and not able to keep up with demand. Unusually dry weather in Brazil during 2010 led to a drop in Cosan’s sugar output by 500,000 tonnes. Cosan sugar crushing operations in 2010 were down 21% from 2009, reaching only about 11.3 million tonnes. Cosan purchased crystallized sugar to make up the shortfall. Reuters reported that earnings for Cosan fell from 490.4 million reais in December of 2009 to 410.5 million reais in the quarter ending December 31, 2010.
More background on the story from the Digest