Mechanization of Brazil’s sugarcane industry: the outlook, the impact

February 13, 2012 |

In Brazil, Michael Cox and Mike Ritzenthaler of Piper Jaffray write: “Multiple factors are converging that will likely drive increased mechanization in Brazil’s sugarcane industry. While it’s difficult to separate bad luck (drought conditions for two straight growing seasons) from under-investment, it was clear during our week-long tour of Brazil’s farm sector that upgrading and optimizing sugarcane production is a key priority of both the regulatory overseer and the sugar mill operators that use cane as a feedstock.

“Brazil does not want a repeat of 2011 where 1 billion gallons of corn-ethanol was imported from the U.S. We believe increased mechanization is an emerging trend in Brazil’s sugarcane market.”

Category: Fuels

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