Major Brazilian banks sees mills and distilleries unlikely to increase investments

In Brazil, Reuters reports that in contrast with other agricultural sectors, banking giant Itaú BBA doesn’t expect sugar mills and ethanol distilleries to take on more financing. Mills were able to pay down some debt in the last season that ended in March but with concerns about lower production due to aging cane fields and an uncertain market, companies will be unlikely to invest more this season. That’s despite the fact that cane fields are in desperate need of renewal and the extensive investments required in order to achieve the ethanol goals set out in RenovaBio.