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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Evolution of Production Costs in Brazilian Sugar-Energy Sector
Author(s)
Haroldo José Torres da Silva, Pedro Valentim Marques
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DOI:10.17265/1537-1514/2017.03.001
Affiliation(s)
University of São Paulo, Piracicaba, Brazil
ABSTRACT
In a context of low
carbon economy emergence and growing demand for alternative and renewable
energy sources,
Brazil appears in the technological and productive vanguard of biofuels. The
sugar-energy sector has a great relevance in Brazilian agribusiness; however,
it has been suffering severe deterioration of its financial situation. This
article presents a methodology to calculate production costs for sugarcane,
sugar, and ethanol in Brazil. Besides methodological
development, this paper was based on
technical and economical survey for the mills and sugarcane producers. This
way, the results are presented in a segmented manner for both groups. The goal
is to analyze the progress of production costs in Brazilian sugar-energy
sector, in 2007/2008 and 2014/2015 crop seasons, with emphasis on technical and
economic indicators about raw materials, sugar, and
ethanol production. There was a systematic increase in
production costs over the last nine crops and decreasing trading prices of
products (sugar and ethanol), implying negative economic margin. In addition to
these facts, it has been identified a decrease in agricultural productivity
indicators, low levels of renovation, and
aging of the sugarcane plantation.
KEYWORDS
sugarcane growers, profitability, cost of producing, sugarcane, ethanol, Brazil
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